Perhaps there is no need to mention the role of Reserve Bank of India (RBI) in Indian economy to the majority of people. But it’s also true that lots of people are yet to know of the same. For them, it can be said that Reserve Bank of India or RBI happens to be the central banking authority of the country and remains in charge of controlling the monetary policy of the rupee in addition to currency reserves. Reserve Bank of India had its inception in 1935 during the heyday of British Empire and was established according to the provisions of the Reserve Bank of India Act, 1934. it is to be noted that RBI, apart from being a leading member of Asian Clearing Union, plays an imperative role in the strategies of development of the Indian government. Let’s get more specific to elucidate the matter better. Reserve Bank of India or RBI happens to be the first and foremost monetary authority in the dominion of India and with the exception of this attribute, it does act in the role of bank of the national and state governments. RBI is known to formulate, implement and keep tabs on the monetary policy and it also has to make certain the sufficient flow of credit to productive sectors. What is the first and foremost of RBI then? Can you assume in any way? It is to retain the stability of price and make adequate flow of credit to productive sectors certain (as already said). Reserve Bank of India, in addition, happens to be both supervisor and regulator of Indian financial system and dictates extensive parameters of banking operations inside which the banking and financial arrangement of India operates. Last but not least, RBI happens to be a banker to the Government and does execute merchant banking job both for central and state governments.
i think RBI needs to play more responsible and comprehensive role in monitoring the flow of money across the nation. the value of indian rupee has long been cheaper and RBI must device some strategies atleast now to bring the indian rupee up in the markets and add more value to it. it should also try to curb flow of money to banks like swiss banks where lots of indian black money is hidden
RBI plays very important role in indian economy, be it regulating the value of indian rupee or regulating or deregulating the inflation. the flow of money is done via the RBI which keeps the track of transactions as well. RBI should work on making strategies to reduce inflation and relieve people of the pathetic situation
RBI plays the role of moderator in indian economy. it is the one which regulates the money flow throughout the nation and also out of nation. it takes the responsibility to keep a check in inflation and liquidity too.. it controls the prices by chaning the repo rates which affects the loan rates and indirectly the other pricing of goods
