Shares the Knowledge !

Main Functions of RBI

The following are main functions of RBI
Monetary Authority:

  1. Formulates, implements and monitors the monetary policy.
  2. Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system:

  1. Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
  2. Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.

Manager of Foreign Exchange

  1. Manages the Foreign Exchange Management Act, 1999.
  2. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency:

  1. Issues and exchanges or destroys currency and coins not fit for circulation.
  2. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role:

  1. Performs a wide range of promotional functions to support national objectives.

Related Functions:

  1. Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
  2. Banker to banks: maintains banking accounts of all scheduled banks. 

  • 19 regional offices, most of them in state capitals and 9 Sub-offices.
Training Establishments:
Has five training establishments

  1. Two, namely, College of Agricultural Banking and Reserve Bank of India Staff College are part of the Reserve Bank 
  2. Others are autonomous such as, National Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT)



Post a Comment

Popular Posts