The Reserve Bank of India (RBI) board, which met in New Delhi, finalised a three- year roadmap to improve regulation and supervision, among other functions of the central bank.
Need for Utkarsh/Objectives:
Main Functions of RBI:
Monetary Authority: Formulates, implements and monitors the monetary policy.
Objective: maintaining price stability while keeping in mind the objective of growth.
Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
Manager of Foreign Exchange: Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency:Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
Developmental role: Performs a wide range of promotional functions to support national objectives.
Regulator and Supervisor of Payment and Settlement Systems:Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
Objective: maintain public confidence in payment and settlement system
The Reserve Bank of India (RBI) regulates and supervises Public Sector and Private Sector Banks. Under the Provisions of the Banking Regulation Act, 1949:
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