Explanation:

The primary function of the Reserve Bank of India (RBI) in India's financial system is to regulate and supervise banks and financial institutions to ensure the stability and efficiency of the banking and financial sector. As the central bank of India, RBI formulates and implements monetary policy, regulates the money supply and interest rates, issues currency notes and coins, manages foreign exchange reserves, and supervises payment and settlement systems to maintain price stability, financial stability, and economic growth. RBI also acts as the lender of last resort, provides liquidity support to banks, conducts open market operations, and intervenes in foreign exchange markets to stabilize the currency and safeguard financial stability. Through its regulatory and supervisory functions, RBI promotes sound banking practices, risk management standards, and consumer protection measures to enhance public confidence and trust in the banking system.