India's Central Bank - the RBI - was established on 1 April 1935
and was nationalized on 1 January 1949.
Functions of RBI
Some of its main objectives are regulating the issue of bank notes,
managing India's foreign exchange reserves, operating India's currency
and credit system with a view to securing monetary stability and developing
India's financial structure in line with national socio-economic objectives
and policies.
As Banker to the Governments
The RBI acts as a banker to Central/State governments, commercial
banks, state cooperative banks and some financial institutions. It
formulates and administers monetary policy with a view to promoting
stability of prices while encouraging higher production through appropriate
deployment of credit. The RBI plays an important role in maintaining
the exchange value of the Rupee and acts as an agent of the government
in respect of India's membership of IMF. The RBI also performs a variety
of developmental and promotional functions.
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