Banking 

TOP 8 Important Functions of RBI - Reserve Bank OF INDIA case study

By Economy Simplified

June 13, 2022

RBI Case Study

1. Currency

The Most Important Function of RBI is Currency Issuing, Forfeiting, Re-Issuing, and Printing functions are completely looked after by RBI

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2. Development Role

Development of the Indian Banking System where it looks at the functions such as Maintaining  Cash Flow, growth of Banks, Helping Govt in issuing Bonds and Securities

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3. Banker To Government

Maintain the Account of the Govt by keeping track of Savings & Expenses, Track Assets of Govt. Monitors integration of Central and State Govt systems with e-Kuber

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4. Bankers To Banks

RBI  provides Loans to the banks at an interest rate called Repo Rate or Bank Rate (Depending on the tenure) or Keeps the Surplus at the Rate called Reverse Repo Rate.

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5. Monetary Policy Report

MPR is a Report released by the RBI to explain the sources for inflation & forecasts of inflation for 6-18 months ahead with the Stance of Action

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6. Fiscal Policy

RBI also plays an important role in deciding the Fiscal policy where its role is to decide the expenditure of the Government and Taxes.

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7. Foreign Reserve

RBI plays a crucial role in maintaining and Exchanging the Foreign Reserves as this is the main factor in deciding the Rupee price in the International market

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8. Advisory Role

RBI is an Advisor to the Government and also to the Banks by advising them on Investments Avenues and Opportunities and also Cautions them.

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