FUNCTIONS OF RBI

SEMINAR BY JOSE DENNIS

• Being a central bank of India, RBI serves a critical role in regulating the financial trans
• The Issuer of Bank Notes
• The most important function of RBI is the issuance of currency notes and coins actions in
the country. 
• Banker to the Government
• Another chief function of RBI is that it takes care of the banking needs of the government,
which includes maintaining & operating the deposit accounts of the government, collecting
the receipts of funds, and making payments on behalf of the Government of India.
• Custodian of Cash Reserves of Commercial Banks
• Commercial banks are required to maintain the cash reserves at a rate decided by the RBI
in its monetary policy.
• Custodian of Foreign Exchange Reserve
• Another of the important functions of RBI is maintaining a reserve of foreign currencies
that enables the RBI to deal with any crisis situation.
• Lender of the Last Resort
• it becomes the lender of the last resort for all banks when they are in a crisis situation.
RBI helps them by lending money
• Controller of Credit
• RBI controls the credit created by the commercial banks in India, in accordance with the
economic priorities of the government of India. RBI uses quantitative and qualitative
methods to control and regulate the flow of money in the market.
THANK YOU