Functions of RBI I Regulator of Banks & Money Market I Lender of Last Resort I Indian Economy I UPSC

The RBI was established in 1935 under the Reserve Bank of India Act, 1934. It is controlled by a central board of directors appointed by the Government of India. The Governor is the executive head of the RBI

Some of its major objectives can be seen as follows:

To regulate the issue of banknotes
To maintain reserves with a view to securing monetary stability and
To operate the credit and currency system of the country to its advantage.
To maintain price stability while keeping in mind the objective of growth.

The Reserve Bank of India (RBI) is India's central bank and has many functions, including:
Currency management
The RBI issues, exchanges, and destroys currency notes, and puts coins minted by the Government of India into circulation. The RBI also works to prevent counterfeiting by regularly upgrading security features.
Banking
The RBI acts as the banker to the government and to banks. The RBI maintains banking accounts for all scheduled banks.
Financial system management
The RBI regulates the banking sector and the issue and supply of the Indian rupee. It also supervises the financial and payments systems.
Developmental role
The RBI supports the government in its developmental projects and policies.
GST collections
The RBI aggregates accounting of all GST collections in the government accounts.
Bank licensing
The RBI grants licenses for opening new branches, extension counters, and closing existing branches. It also inspects banks and asks for periodic information on assets and liabilities.

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