Reserve Bank of India (RBI) - Function and balancing economy
Reserve Bank of India (RBI) is the central bank of India and is the apex monetary institutions of the country. The banking regulation act has helped RBI to rise up with strength by the quote "to regulate, control and inspect the banks in India." RBI has a great role in the economy of India. RBI always keeps some gold almost equaling the foreign exchange reserve.RBI performs the following functions : to issue notes, it functions as a banker, agent and advisor, it also functions in controlling the credit activities, its functions in development and promotions, to implement new monetary policies, provide training facilities, it always keeps a strong relationship with international institutions like World Bank and all. So how does the central bank help in balancing our economy and what measures do they take if imbalances occurs ?