The  Reserve Bank of India (RBI) is India's financial institution , which controls the

difficulty and provide of the Indian rupee . RBI is that the regulator of the

whole Banking In India. RBI plays a crucial part within the Development Strategy of the
govt of India. 
RBI regulates commercial banks and non-banking finance companies working in India.
It is the leader of the banking industry and therefore the market . It regulates funds and
credit within the country. The RBI carries out India's monetary policy and exercises
supervision and control over banks and non-banking finance companies in India. RBI
was found out in 1935 under the Federal Reserve Bank of India Act,1934
The Roles And Responsibilities of RBI are:-
• Monetary Authority: Formulates, implements and monitors the monetary policy for A)
maintaining price stability, keeping inflation in restraint ; B) ensuring adequate flow of
credit to productive sectors.
• Regulator and supervisor of the economic system : lays out parameters of banking
operations within which the country’s banking and financial system functions for- A)
maintaining public confidence within the system, B) protecting depositors’ interest C)
providing cost-effective banking services to the overall public.
• Regulator and supervisor of the payment systems: A) Authorises fixing of payment
systems; B) Lays down standards for working of the payment system; C)lays down
policies for encouraging the movement from paper-based payment systems to electronic
modes of payments. D) fixing of the regulatory framework of newer payment methods.
E) Enhancement of customer convenience in payment systems. F) Improving security
and efficiency in modes of payment.
• Manager of exchange : RBI manages forex under the FEMA- Foreign Exchange
Management Act, 1999. so as to A) facilitate external trade and payment B) promote the
event of exchange market in India.
• Issuer of currency: RBI issues and exchanges currency also as destroys currency &
coins not fit  circulation to make sure that the general public has an adequate quantity of
supplies of currency notes and in good quality.
• Developmental role : RBI performs a good range of promotional functions to support
national objectives. Under this it setup institutions like NABARD, IDBI, SIDBI, NHB,
etc.
• Banker to the Government: performs merchant banking function for the central  and
therefore the state governments; also acts as their banker.
• Banker to banks: a crucial role and performance of RBI is to take care of the banking
accounts of all scheduled banks and acts because the banker of other banks.

Tarunvir Kukreja

1820335