Role of RBI JKSSB FAA ,The Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is the central bank of India and plays a crucial role in the country's monetary policy and financial system. Some of the main functions and responsibilities of the RBI include: Monetary policy: The RBI is responsible for regulating the country's monetary policy by controlling the money supply and managing inflation. To achieve this, the RBI uses a variety of tools such as changing interest rates, open market operations, and quantitative easing. By increasing or decreasing interest rates, the RBI can influence the demand for money, which in turn affects inflation. Banking regulation: The RBI is responsible for regulating and supervising the banking system in India. It issues new licenses to banks, sets and monitors compliance with regulations, and acts as a lender of last resort to banks in case of a financial crisis. This helps to ensure the stability of the banking system and protect the interests of depositors. Management of foreign exchange:...