Detailed Information on Works of RBI

Works of RBI in India

The Reserve Bank of India is autonomous body which regulate and frame policies for the Indian Economy. The Reserve Bank of India control the money flow. They also keep watch on Inflation and take necessary steps to control the inflation rate. The Preamble of Reserve Bank of India gives idea about works of RBI.

The Preamble States that “”to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”

The RBI regulate the issuance of currency notes. The currency coins are issued by Government of India, but the circulation of the coin done by the Reserve Bank of India. The RBI works along with Government of India and ministry of Finance (India).

Also read, Functions of RBI – Reserve Bank Of India

Working of Reserve Bank of India

The RBI changes their monetary policy with the view of growth and controlling of Inflation. The Reserve Bank of India works as central Bank for India.

The works of RBI listed below,

• Monetary policy : The Reserve Bank of India set the Monetary policy for the Indian Economy. The Reserve Bank of India changes interest and decide money circulation in Indian economy. RBI set monetary policy to control inflation and Keep growth on fast track.
• RBI set Regulation and keep watch on banking and non-banking financial institutions, including credit information companies. RBI take necessary actions to keep depositors money safe and secure. They regulate credit flow of Banks and Non Banking institute.
• Works of RBI includes regulation of money, forex and government securities markets as also certain financial derivatives. RBI is sole authorizer of issuer of currency in India. RBI can destroy, change and issue currency in India.
• RBI do Debt and cash management for Central and State Governments. RBI works as Banker of Central and State Governments. They buy bonds of government. They also provide credit facility to the governments.
• Management of foreign exchange reserves done by RBI in India. RBI keep watch on forex transactions by Individuals, national and international organizations in India. They facilitate the trade by providing credit assistance. The forex exchange related rules and regulations done by RBI. They work to manage Foreign Exchange Management Act, 1999.
• The works of RBI also include Foreign exchange management of current and capital account management.
• RBI Regulate the payment and settlement systems in India. The introduction and upgradation of payments systems done by RBI.
• The RBI provide Currency management to the government.
• Reserve Bank of India also play Developmental role in Indian economy. The weaker and priority sections are provided credit facility by RBI.
• The Research and Statics information made available on Indian economy. RBI created training facilities for the trainees working in RBI.