Take Class 12 Tuition from the Best Tutors
Search in
Asked by Santosini Last Modified
Harpreet Kaur
IELTS, Interviewer, Spoken English trainer with 2 years of experience in IELTS industry.
Being a central bank of India, RBI serves a critical role in regulating the financial transactions in the country. Some of the important functions of RBI are listed below:
Issue of Bank Notes
Banker to the Government
Custodian of the Cash Reserves of Commercial Banks
Custodian of country’s forex reserves
Lender of last resort
Controller of credit
Now let us discuss these RBI functions in detail:
The most important function of RBI is the issuance of currency notes and coins, except the one rupee note and coin which are issued by the Ministry of Finance. All other notes bear the signature of the RBI Governor. However, the agency of distribution of all notes and coins issued by the Government of India is the Reserve Bank of India.
Another chief function of RBI is that it takes care of the banking needs of the government, which includes maintaining & operating the deposit accounts of the government, collecting the receipts of funds, and making payments on behalf of the Government of India. It also represents the Indian Government, as a member of the International Monetary Fund and the World Bank.
Commercial banks are required to maintain the cash reserves at a rate decided by the RBI in its monetary policy.
Another of the important functions of RBI is maintaining a reserve of foreign currencies that enables the RBI to deal with any crisis situation.
Often regarded as the banker of banks, the RBI acts as a parent to all commercial banks in India. Thus, it becomes the lender of the last resort for all banks when they are in a crisis situation. RBI helps them by lending money, although at higher RoI, to sail through the tide of financial difficulties.
RBI controls the credit created by the commercial banks in India, in accordance with the economic priorities of the government of India. RBI uses quantitative and qualitative methods to control and regulate the flow of money in the market. These are implemented by announcing monetary policies at regular intervals. The monetary policy involves the management of interest rates and money supply. The central bank of India tweaks the money supply to achieve objectives such as liquidity, inflation, and consumption.
read less
Mandakini Singh
Teaching is more than just a job, it is a responsibility. A responsibility to help shape career..
View 3 more Answers
Related Questions
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRecommended Articles
Meet Mohammad Wazid, a skilled trainer for...
Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...
Read full article >
Meet Radhe Shyam Burman, an MBA Tutor from...
Radhe Shyam is a highly skilled accounts and finance trainer with 8 years of experience in teaching. Accounting is challenging for many students and that’s where Radhe Shyam’s expertise comes into play. He helps his students not only in understanding the subject but also advises them on how to overcome the fear of accounts...
Read full article >
Meet Sandhya R, a B.Sc tutor from Bangalore
Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...
Read full article >
Meet Raghunandan.G.H, a B. Tech Tutor from...
Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...
Read full article >
Looking for Class 12 Tuition ?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near youThe best tutors for Class 12 Tuition Classes are on UrbanPro
The best Tutors for Class 12 Tuition Classes are on UrbanPro