Question

Explain in detail about the role of RBI in the country.

Answer 1

1. A government has the responsibility to regulate the money supply and oversee the monetary policy.
2. Hoarding of money must be avoided at all costs in a country’s economy.
3. Only then money can be saved in banks.
4. All the major and important banks were nationalized (1969) in India.
5. The Reserve Bank of India (RBI) regulates the circulation of currency in India.
6. The Reserve Bank of India started its operations on 1st April 1935.
7. It was permanently moved to Mumbai from the year 1937.
8. RBI was nationalized in 1949. 85% of the printed currency is let for circulation.
9. According to the statistics available as of August 2018, currency worth 19 lakh crore are in circulation.