Functions of RBI

• Reserve Bank of India is the main monetary authority of the country. It formulates, implements and monitors the monetary policy and thereby plays a key role in maintaining price stability and ensuring adequate flow of credit to productive sectors.
• RBI is the regulator and supervisor of the financial system in the country. It prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
• It manages the foreign exchange of the country.
• Performs merchant banking function for the central and the state governments; also acts as their banker.
• Maintains banking accounts of all scheduled banks.
• Issues and exchanges or destroys currency and coins not fit for circulation.