Issuing Currency: The RBI has the sole authority to issue currency notes in India. ensuring an adequate supply of money and maintaining its value.
1. Monetary Policy Implementation: It regulates money supply and credit in the economy to control infiation, stabilize currency, and promote growth.
2. Lender of Last Resort: The RBI provides financial assistance to commercial banks during liquidity crises to maintain stability in the banking system.
3. Regulation of Banks: It supervises and regulates commercial banks to ensure their solvency, efficiency, and adherence to laws.
4. Foreign Exchange Management: The RBI manages foreign exchange reserves and regulates foreign exchange transactions to ensure balance-of-payments stability.
5. Government's Banker: It acts as the banker, agent, and debt manager for the government, handling public debt and treasury operations.
