It also provides financial and other support incidental to such institutions and for matters connected therewith. National Housing Bank (NHB): NHB has been established to operate as a nodal agency to promote housing finance institutions at local and regional levels.RBI established the Deposit Insurance Corporation: With Deposit Insurance Corporation’s establishment, RBI develops its banking system by preventing bank failures.īelow-mentioned is fully-owned subsidiaries of Reserve Bank of India:.The concerned data is then processed and disseminated regularly to various economic sectors to aid them in research and policymaking. Data collection and publication of Reports: RBI collects necessary data related to banking, finance, credit, currency, agricultural and industrial production.Development of Agriculture: RBI also pays special attention to provide credit and cash flow towards the agriculture sector.Along with that, it also ensures that adequate and timely credit is provided to the industries. Development of financial system: RBI develops an efficient financial system with various financial institutions, including financial markets, financial instruments and financial institutions.Custodian of foreign reserves: The Reserve Bank buys & sells the foreign currencies to maintain the foreign reserve in the economy.Īpart from the traditional financial, regulatory and monetary activities, Reserve Bank of India is involved in various promotional and developmental activities.It oversees sufficient supply, and similarly, in case of inflation, it squeezes the credit supply.

Controller of the credit: This is one of RBI's crucial decisions under which it controls the flow of money supply in the economy using various measures.All the commercial banks also need to maintain a minimum cash reserve with RBI as a statutory obligation. Banker's Bank: RBI regulates & supervises all banks’ banking operations, including lending money to all the commercial banks.It performs all the government's banking functions, including advising the government on critical economic & monetary decisions. Banker to the Government: The Reserve Bank of India also acts as a banker to the state & central government.It maintains the demand & supply of money in the Indian economy. Issue of Currency: RBI has sole authority to print the currency notes for all the denominations except the one-rupee note printed by the Finance ministry.Below-mentioned is the main functions performed by Reserve Bank of India: RBI carries out a diverse range of monetary, financial & regulatory activities.

Role and functions of rbi