Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th
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Classify the various functions of the Reserve Bank of India. - Commerce

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Answer in Brief

Classify the various functions of the Reserve Bank of India.

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Solution

The functions of the RBI can be grouped under three heads:
(i) Leadership and Supervisory Functions, (ii) Traditional Functions and, (iii) Promotional Functions.

(i) Leadership and Supervisory Functions:

  1. India’s Representative in World Financial Institutions
  2. Regulator and Supervisor of Indian Banking System
  3. Monetary Authority
  4. Closely Monitoring Economic Parameters
  5. Promptly Responding to New Challenges

(ii) Traditional Functions:

  1. Banker and Financial Advisor to the Government
  2. The monopoly of Note Issue
  3. Banker’s Bank
  4. Controller of Credit and Liquidity
  5. Quantitative Methods of Credit Control
  6. Qualitative Credit Control Measures
  7. Lender of the Last Resort
  8. Clearing House Services
  9. Custodian of Foreign Exchange Reserves
  10. Maintenance of Foreign Exchange Rate
  11. Collection and Publication of Authentic Data

(iii) Promotional Functions:

  1. Nurturing Banking Habits among the Public
  2. Grievance Settlement Measures
  3. Agricultural Development
  4. Promotion of Small Scale Industries
  5. Facilitates Foreign Trade
  6. Supports Cooperative Sector
Concept: Functions of RBI
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APPEARS IN

Tamil Nadu Board Samacheer Kalvi Class 11th Commerce Answers Guide
Chapter 10 Reserve Bank of India
Exercise | Q IV. 1. | Page 95
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