0
Functions of RBI:
1. Authority to issue currency: It has the sole authority to issue notes and coins in India except for one rupee note, and coins are issued by the ministry of finance.
2. Banker's bank: It acts as an agent, adviser and banker to the government.
3. Lender of last resort: It is concerned with providing loans to commercial banks in case of emergency; otherwise, commercial banks would collapse.
4. Cleaning house functions: It is concerned with passing debit and credit entries against banks without the transfer of cash.
5. Custodian of foreign exchange reserves: It maintains reserves of foreign exchange reserves with itself that can be used in case of emergency.
6. Controller of credit and money supply:
- Qualitative Measures
- Quantitative Measures
