General Knowledge

FUNCTIONS OF RBI

Bankers to the government : RBI acts as a merchant between central and state governments and manages business and public debts.

Bankers to bankes : RBI maintains banking accounts of all commercial banks and acts as lender by providing financial assistance to banks.

Issuance of currency : Issues currency notes under signatures of governor. one rupee note is issued by central govt. signed by finance minister.

Maintenance of foreign currency :RBI manages the foreign exchange management act 1999,foreign exchange reserves are held by rbi and it has wide powers to regulate foreign exchange transactions under FEMA.

Controller of banks : RBI acts as controller of all banks it issues directions and controls money flowing in scheduled and commercial banks.