Advertisements
Advertisements
प्रश्न
Explain the 'Clearing House Function' of the central bank.
Advertisements
उत्तर
- The central bank provides a clearing house facility to the commercial banks. In other words, it settles the claims of commercial banks through a process of book entries.
- The daily balances between the commercial banks can easily be adjusted by means of debit and credit entries in their respective accounts with the central bank.
- Let us take an example to explain this process. Suppose the Bank of Baroda has to pay an amount of ₹ 20 lakhs to the Punjab National Bank. To settle its dues, the Bank of Baroda will issue a cheque of ₹ 20 lakhs to the Punjab National Bank. The Reserve Bank of India will debit the account of the "Bank of Baroda" by ₹ 20 lakhs and credit the account of the Punjab National Bank by the same amount.
- The clearing house facility offers several advantages. Firstly, settlements between different commercial banks can be made conveniently through book entries. Secondly, the possibilities of cash withdrawals during an economic crisis are reduced. Therefore, it helps to stabilise the banking system in the country. The State Bank of India carries out these settlements where the Reserve Bank of India has no office.
APPEARS IN
संबंधित प्रश्न
Explain the functions of the RBI with respect to the following:
- Custodian of foreign exchange reserves.
- Monopoly of note issue.
- Clearing house facility.
- Banker and fiscal agent to the government.
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
Which function of RBI is indicated by the above image?
The Central bank is having the authority to regulate the amount of money supply in the economy.
Based on the above explain the following.
- Credit Rationing
- CRR
- Regulation of Margin Requirements
- Bank Rate
Give two major functions of the central bank of our country.
Identify which of the following is not the function of the central bank?
Which of the following statements are true?
- The Reserve Bank of India is the central bank of the country.
- All currency notes (except one rupee note) bear the signature of Governor, RBI.
- The objective of the Reserve Bank of India is to earn profit.
Identify the function of RBI as indicated by the following image.
How does the central bank act as a lender as the last resort?
Give two reasons why the central banks enjoy monopoly of note issue.
