Central Bank and its

Functions in India
Welcome to a journey into the world of the Central Bank! Discover the role,
functions, and impact of the Central Bank in shaping India's economy.
by hardik sewani
Introduction to the Central Bank
What is a Central Bank?
Learn about the definition and purpose of a Central Bank, the key institution in a country's
monetary system.

Importance of the Central Bank

Explore the crucial role the Central Bank plays in maintaining economic stability and
promoting growth.

Role and Functions of the Central Bank

Discover the various responsibilities of the Central Bank, including monetary policy
implementation, currency management, and more.
Tools and Instruments used by the
Central Bank
Interest Rates Open Market Operations Reserve Requirements
Understand how interest rates Explore how the Central Bank Learn about reserve ratios and
are set and controlled by the buys or sells government how the Central Bank uses
Central Bank to influence securities to regulate the them to ensure the stability and
borrowing costs and overall money supply and manage soundness of the banking
economic activity. liquidity. system.
Challenges and Issues faced by the
Central Bank
1 Inflation Control
Discover the strategies employed by the Central Bank to control inflation and maintain
price stability in the economy.
2 Exchange Rate Stability
Learn about the Central Bank's efforts to maintain a stable exchange rate to promote
international trade and economic growth.
3 Financial Sector Reforms
Explore the ongoing reforms and challenges faced by the Central Bank in regulating and
strengthening the financial sector.
Impact of Central Bank Policies on
the Economy
1 Effects on Inflation and Interest Rates
Understand how the Central Bank's policies influence inflation rates and interest
rates to shape the overall economic environment.

2 Impact on Economic Growth and Employment

Explore the relationship between the Central Bank's actions and their impact on
economic growth, job creation, and employment rates.

3 Conclusion and Future Outlook

Recap the key role and functions of the Central Bank, as well as the challenges
it faces. Look ahead to potential reforms and future developments.