The Main functions of the Reserve Bank of India RBI include 1 Acting as Regulator and supervisor of ...........

Economic Affairs Money Supply and Monetary Policy

The Main functions of the Reserve Bank of India (RBI) include

1 .Acting as Regulator and supervisor of the financial system

2. Protecting depositors' interest and ensure cost-effective and efficient Banking Services to the public

3. Maintaining banking accounts of all Scheduled and Non- Scheduled banks with in the domestic territory of the country

4. To facilitate external trade and payment and promote orderly development of foreign exchange market

Select the correct answer using the codes below.

1, 2 and 3 only

1, 2 and 4 only

3 and 4 only

1, 2, 3 and 4

Functions of RBI includes:

As a Monetary Authority:

Formulates, implements and monitors the monetary policy
Objective: maintaining price stability while keeping in mind the objective of growth.

Regulator and supervisor of the financial system:

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

Manager of Foreign Exchange

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

Issuer of currency:

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

Developmental role

Related Functions

Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks only ( 3rd statement in the options is incorrect)