The Fucntions of the Reserve Bank of India
The main functions of the Reserve
Bank of India are to:
- Maintain financial stability and
enable the growth of sound Financial Institutions. This should, in
turn, enable monetary stability and allow economic units to carry out
their business with confidence.
- Maintain monetary stability for
the business and economic life towards growth and proper functioning
of a mixed economic system in the country.
- Maintain a stable payments and
currency system and facilitate safe and efficient execution of
- Promote a stable financial
structure of markets and systems and help it to operate with optimum
- Regulate the money and credit
supply in the economy to help maintain price stability to a reasonable
- Ensure credit allocation in line
with national economic priorities.