Role of RBI in Indian financial market

As the world’s largest central bank, the Reserve Bank of India (RBI) has an important role in
the Indian financial market. It is an autonomous body under the government of India. The
objectives of RBI are stated in the Reserve Bank of India Act, 1934, which is an act of
Parliament. The primary objective of the RBI is to ensure price stability in the country. The
primary function of RBI is to control the supply of money in the economy. The other
functions of RBI include the control of credit in the economy, effective management of
foreign exchange, and effective regulation in the financial sector. Given the slowdown in
economic growth, news about the RBI is a hot topic right now. Everyone is watching the RBI
and waiting to see what steps it can take to revive the economy. Today we will look at the
duties and role of the RBI in the financial market. Here we discuss the functions that the
banker performs for the government in our financial system.