Most people know about the Reserve Bank of India (RBI). But it is also true that regarding RBI, people have only the image of currency and bank in their mind. Most people think that the job of RBI is only to issue money. But today we will tell you in which works RBI plays an important role in the country.
Issuance of notes in the country
In India, the responsibility of printing and issuing currency rests with the central bank i.e. Reserve Bank of India (RBI). Apart from this, RBI also decides how many notes of Rs 100 and how many of Rs 50 will be available in the market. The Reserve Bank of India has adopted the minimum reserve system for issuing currency. This system was adopted in 1957. Which means RBI will keep only gold and foreign exchange reserves up to Rs 200 crore with itself. Out of this, gold worth Rs 115 crore will be there and the remaining reserve will be in foreign currency.
government advisor
The Reserve Bank of India also plays the role of banker, agent and advisor to the Central and State Governments. It also does banking related work for the government. Not only this, RBI also gives advice to the central and state governments on how to improve the economy. Apart from this, it also issues monitoring policy. Apart from this, the Reserve Bank of India also does the work of solving the problems of the debt burden of the general public on the government.
control over all banks
In fact, RBI is the bank of all the banks operating in the country. Banks across the country distribute loans to the people, but RBI lends money to the commercial banks of the country. Not only this, the Reserve Bank of India takes the responsibility of controlling the loans issued by commercial banks. It is also responsible for the flow of currency in the economy. Like when RBI sees that there is sufficient money supply in the economy and this can lead to inflationary situation in the country. At that time he reduces the money supply through his monetary policy.
foreign currency
Apart from this, with the aim of keeping foreign exchange rates stable, the Reserve Bank buys and sells them. It also protects the country’s foreign exchange reserves. It sells foreign currency when its supply in the economy decreases. According to a report, India currently has foreign exchange reserves of about US $ 487 billion. Apart from this, RBI also acts as the representative of the government in the International Monetary Fund and represents India’s membership.
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