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Some of the main functions and responsibilities of the RBI

The Reserve Bank of India (RBI) is the central bank of India and plays a crucial role in the country's economy. Some of the main functions and responsibilities of the RBI include:


Monetary Policy: The RBI is responsible for formulating and implementing monetary policy in India, which includes setting interest rates and controlling the money supply to maintain price stability and promote economic growth.


Banking Supervision: The RBI is responsible for supervising and regulating the banking sector in India, including commercial banks, cooperative banks, and non-banking financial companies (NBFCs).


Foreign Exchange Management: The RBI manages India's foreign exchange reserves and regulates foreign exchange transactions to maintain the stability of the rupee and promote orderly development of the foreign exchange market.


Currency Management: The RBI is responsible for issuing and regulating the circulation of currency in India. It also manages the country's coinage.


Developmental Role: The RBI also plays a developmental role by implementing various schemes and initiatives to promote financial inclusion, encourage small and medium enterprises, and support infrastructure development.


Payment and Settlement System: The RBI also plays a key role in the development and regulation of payment and settlement systems in the country.


Overall, the RBI is an important institution that plays a central role in the Indian economy, by promoting monetary stability and financial sector development, as well as fostering economic growth and development.

 

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