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| Name | Functions of Reserve Bank of India | Functions of RBI | Banking | BCom Sem 6 | VNSGU |
| Video Uploader | Video From Learn with Himanshu Nandwani |
| Upload Date | This Video Uploaded At 23-02-2024 04:30:01 |
| Video Discription | Traditional Functions of RBI: (1) Issue of Currency: Under Section 22 of the Reserve Bank of India Act, 1934, the bank has the sole right to issue currency notes of all denominations except one rupee notes and coins and subsidiary coins, which are, however, issued by the Government of India (the Ministry of Finance of the Government of India issues One-rupee notes and coins). The bank also destroys banknotes when they are not fit for circulation. All the money issued by the central bank is its monetary liability, i.e., the central bank is obliged to back the currency with assets of equal value, to enhance public confidence in paper currency. (2) RBI acts as a Banker to Government of India: Prior to the establishment of the Reserve Bank, the Imperial Bank of India acted as a banker to the government. But after the setting up of the Reserve Bank of India, it performs the function of a banker to the government. Under Section 20, 21 and 21-A of the Reserve Bank of India Act, the Bank is charged with the duty to act as a banker to the government. (3) RBI works as a Banker's Bank : The Reserve Bank of India also acts as a bankers' bank. With the objective of developing and maintaining public confidence over the financial system of the country, RBI regulates and supervises certain parameters of banking operation in India. (4) Credit Control : This is one of the most important functions of RBI. RBI has the power and authority to take responsibility of credit control to ensure internal control of price and sustainable economic growth. This is an important tool for RBI to regulate the demand and supply of money (that is liquidity) in the economy. This is an essential component for economic development. Power of credit control allows RBI to channelize adequate bank credits to the different sectors resulting in the economic boost. (5) Monetary Functions: RBI formulates the country's monetary policy as part of its role as Central Bank. This is the macroeconomic policy that is intended to stabilize commodity prices, control inflation manage consumption, monitor adequate flow of credit in the different sectors and increase the overall economic development of the country. 1) Bank rate 2) CRR 3) Open market Operations 4) SLR 5) Credit Ceiling (6) Foreign Exchange Control : The Reserve Bank is the upholder of the foreign exchange reserves of India. RBI looks after the different aspects of the Foreign Exchange Management Act, 1999 like facilitating foreign trade and Promoting the management of foreign exchange in India. #rbi #functionsofrbi #vnsgu #banking #bcomsem6 #himanshunandwani #learnwithhimanshunandwani #icai #bcomhonours #teaching |
| Category | Education |
| Tags | RBI | Functions of RBI | RESERVE BANK OF INDIA | BCom | Sem 6 | VNSGU | ICAI | Learn with Himanshu Nandwani |
