Main Functions
- Monetary Authority: It formulates implements and monitors the monetary policy. This helps in maintaining price stability and ensuring adequate flow of credit to productive sectors.
- Regulator and supervisor of the financial system:
It prescribes broad parameters of banking operations within which the country’s banking and financial system functions. This helps maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public.
- Manager of Exchange Control: It manages the Foreign Exchange Management Act, 1999. This helps to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
- Issuer of currency: It Issues and exchanges or destroys currency and coins not fit for circulation. This helps to give the public adequate quantity of supplies of currency notes and coins and in good quality.
- Developmental role: It performs a wide range of promotional functions to support national objectives.
- Related Functions
- Banker to the Government: It performs merchant banking function for the central and the state governments; also acts as their banker.
- Banker to banks: It maintains banking accounts of all scheduled banks.
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