Major Functions Of RBI
Introduction
The RBI was established by passing "trasfer of public ownership Act" in Sep-1948 under which the ownership of
the bank was passed into the hands of the Government of India with effect from 1st january 1949.
Fuctions:
The fuctions are classified into three heads,viz.,
A) Traditional functions
B) Promotional functions and
C) Supervisory functions. lets see the detailed accont in these heads.,
A) Traditional functions
1.Monopoly of currency notes issue
2.Banker to the Government(both the central and state)
3.Agent and advisor to the Government
4.Banker to the bankers
5.Acts as the clearing house of the country
6.Lender of the last resort
7.Custodian of the foreign exchange reserves
8.Maintaining the external value of domestic currency
9.Controller of forex and credit
10.Ensures the internal value of the currency
11.Publishes the Economic statistical data
12.Fight against economic crisis and ensures stability of Indian economy.
B) Promotional functions
1.Promotion of banking habit and expansion of banking systems.
2.Provides refinance for export promotion
3.Expansion of the facilities for the provision of the agricultural credit through NABARD
4.Extension of the facilities for the small scale industries
5.Helping the Co-operative sectors.
6.Prescribe the minimum statutory requirement.
7.Innovating the new banking business transactions.
C) Supervisory functions
1.Granting licence to Banks.
2.Inspects and makes enquiry or determine position in respect of matters under various sections of RBI
and Banking regulations
3.Implements Deposit insurence scheme
4.Periodical review of the work of the commercial banks
5.Giving directives to commercial banks
6.Control the non-banking finance corporation
7.Ensuring the health of financial system through on-site and off-site verification.
Functions Of RBI
