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