What is the Reserve Bank of India (RBI)?
The Reserve Bank of India (RBI) is the central bank of India, which was established on April 1, 1935, under the Reserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the country’s currency and credit systems. Understanding the Reserve Bank of India (RBI)
Who owns the Reserve Bank of India?
RBI is entirely operated and owned by the Government of India, and the Preamble of RBI, describes the basic objectives of the Reserve Bank which are as follows: To operate the currency and credit system of India to its advantage
How does the Reserve Bank of India work?
Reserve Bank of India also works as a central bank where commercial banks are account holders and can deposit money. RBI maintains banking accounts of all scheduled banks. Commercial banks create credit. It is the duty of the RBI to control the credit through the CRR, repo rate, and open market operations.