Finance, Forex and Investments

what is the role of reserve bank of india in indian economy?

Public Comments

1. its the central bank in india, therefore its role is to ensure that the currency rate does not cause hyper inflation or deflation in india. it keeps a check on not onlyy the currrency but also the cash flow within the country so that the country can expand and grow without cauing hyper-change due to exterior factors. it mentains indias treasury
2. the role is simple: to see that Indian rupee remains stable and economy is not over heated like china. they are the trustees or guardians of the banks, financial institutions and economy in general. role are multifunctional: assisting in forming policies for FDI to check the FOREX of your contry to gurad the interest of the depositors with the bank to control the exchange rates with bunch of currencies to influence the market if there is a volative swings in currencies to decide on the bank interest rates to monitor the import statistics and co-ordinate with Revenue depart to form the policies and budgets every year or time to time help to give the partial and/or full autonomy to banks for IPO's to monitor NBFC don't run away with the public money like your harshal mehta and ketan parekhs ( same like barring bank in Singapore) it goes on honey
3. RBI plays an important role in indian economy becoz its the central bank of india. its main functions are: -issue currency notes and coins. -decide the SLR(STATUTORY LIQUIDITY RATIO), CRR(CASH RESERVE RATIO), BANK RATE etc. -RBI also controls the situations of inflation and deflation with the help of its monetary and fiscal policies. -the preparation of budget also depends on RBI decisions.