Dr. Mahendra P.

Agasty
 Central Bank is the supreme monetary
institution which is apex of the monetary and
banking structure of a country.
 The bank of England (1882)
 The movement of central banking started in
the 20th Century.
 Federal reserve system (1913)
 Reserve Bank of Indian (1935)
 The central bank is the apex monetary
intuition where as commercial banks are the
constituent unit.
 The central bank does not operate with profit
motive. Commercial bank have profit motive.
 State owned/privately owned
 No public contact/public contact
 No competition with commercial bank
Bank of note issue
Uniformity
Better control over money supply
Increase public confidence
Monetary management becomes easier
Banker, Agent and Advisor to the Government
It maintains the account of central and state
government.
Collect taxes and make payments on behalf of
the government
Bankers Bank
Custodian of the cash reserves
As the lender of the last resort
As clearing agent.
Custodian of foreign exchange reserves
Controller of credit.
Price stability
Economic stability
Maximisation of employment
Economic growth
Quantitative or general
Qualitative or selective
Bank rate Policy
Open market operations