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What does RBI do?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pinky asked about 3 years ago

What does RBI do?

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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Anil Dhawan answered over 2 years ago

Reserve Bank of India (RBI) is one of the regulatory bodies of our country. RBI was established in the year 1935. It was thereafter nationalised in 1949. RBI is the Central Bank of India. The RBI has different functions and it performs different roles. It regulates the banking system and financial system of the country. Reserve Bank of India has the power to issue currency notes (except one rupee notes which are issued by the Ministry of Finance). RBI acts as banker to the government and manages the banking needs of the government. RBI is knows as bankers of all bank. In fact, RBI is the custodian of cash reserves of Commercial Banks. In case of emergency, the commercial banks approach the Reserve Bank for any major financial difficulties. RBI also acts as controller of credit. Central Clearance and Accounts Settlement are considered as essential functions of RBI.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered over 2 years ago

Hello 1.Regulates banks: RBI regulates banks in the country. All those aspiring to start a bank or acquire an existing one, have to seek RBI approval. RBI also monitors financial stability of banks and keeps a check on lending in the system. 2.Controller of Credit: Since credit money forms the most important part of supply of money, and since the supply of money has important implications for economic stability, the importance of control of credit becomes obvious

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Data?1494421730 rohit awasthi answered about 3 years ago

some main function of RBI 1.Regulates banks: RBI regulates banks in the country. All those aspiring to start a bank or acquire an existing one, have to seek RBI approval. RBI also monitors financial stability of banks and keeps a check on lending in the system. 2.Controller of Credit: Since credit money forms the most important part of supply of money, and since the supply of money has important implications for economic stability, the importance of control of credit becomes obvious. 3. Lender to banks: The commercial banks approach the Reserve Bank in times of emergency to tide over financial difficulties, and the Reserve bank comes to their rescue though it might charge a higher rate of interest. 4.Custodian of Cash Reserves of Commercial Banks: The commercial banks hold deposits in the Reserve Bank and the latter has the custody of the cash reserves of the commercial banks. 5. Custodian of Country’s Foreign Currency Reserves: The Reserve Bank has the custody of the country’s reserves of international currency, and this enables it to deal with crisis connected with adverse balance of payments position. 6.Exchange rate stability: RBI may intervene in the market to influence the exchange rate or to reduce volatility. The basic intention in such actions is to maintain the demand-supply equilibrium. 7.Payment system: The RBI takes part in the payment system as a user of the system, a service provider and is also the regulator of the systems. As a user it deals with the cheque based clearing operations. 8.ssuer of Bank Notes: The RBI has the sole right to issue currency notes. At present, notes of Rs 10; Rs 100; Rs 500; and Rs 1,000 are only printed. The printing of Re 1, Rs 2 and Rs 5 has been stopped 9. The RBI formulates monetary policy twice a year. It reviews the policy every quarter as well. This is only a overview

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Open uri20170510 32134 117xyds?1494421825 dhanashri answered about 3 years ago

hello lfollowing are the functions of RBI 1. Issue of Bank Notes: The Reserve Bank of India has the sole right to issue currency notes except one rupee notes which are issued by the Ministry of Finance. Currency notes issued by the Reserve Bank are declared unlimited legal tender throughout the country. 2 Banker to Government: As banker to the government the Reserve Bank manages the banking needs of the government. It has to-maintain and operate the government’s deposit accounts. It collects receipts of funds and makes payments on behalf of the government. It represents the Government of India as the member of the IMF and the World Bank. 3.Custodian of Cash Reserves of Commercial Banks: The commercial banks hold deposits in the Reserve Bank and the latter has the custody of the cash reserves of the commercial banks. 4. Custodian of Country’s Foreign Currency Reserves: The Reserve Bank has the custody of the country’s reserves of international currency, and this enables the Reserve Bank to deal with crisis connected with adverse balance of payments position. 5. Lender of Last Resort: The commercial banks approach the Reserve Bank in times of emergency to tide over financial difficulties, and the Reserve bank comes to their rescue though it might charge a higher rate of interest. 6. Central Clearance and Accounts Settlement: Since commercial banks have their surplus cash reserves deposited in the Reserve Bank, it is easier to deal with each other and settle the claim of each on the other through book keeping entries in the books of the Reserve Bank. The clearing of accounts has now become an essential function of the Reserve Bank. 7.. Controller of Credit: Since credit money forms the most important part of supply of money, and since the supply of money has important implications for economic stability, the importance of control of credit becomes obvious. Credit is controlled by the Reserve Bank in accordance with the economic priorities of the government.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Partha Sengupta answered about 3 years ago

Reserve Bank of India (RBI) is one of the regulatory bodies of our country. RBI was established in the year 1935. It was thereafter nationalised in 1949. RBI is the Central Bank of India. The RBI has different functions and it performs different roles. It regulates the banking system and financial system of the country. Reserve Bank of India has the power to issue currency notes (except one rupee notes which are issued by the Ministry of Finance). RBI acts as banker to the government and manages the banking needs of the government. RBI is knows as bankers of all bank. In fact, RBI is the custodian of cash reserves of Commercial Banks. In case of emergency, the commercial banks approach the Reserve Bank for any major financial difficulties. RBI also acts as controller of credit. Central Clearance and Accounts Settlement are considered as essential functions of RBI. The RBI formulates the monetary policy of the country and it reviews the policy periodically.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 3 years ago

RBI RBI is the central bank of country it controls inflation issues bank notes it is the banker to government it regulates exchange rates it regulates other banks it ia lender to bank it is controller of credit

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