Meaning and Definition of Central bank?
Define or Explain the following concepts
Meaning: - The central bank is the apex bank in the country. It enjoys the apex position in the country’s monetary and banking structure. It regulates and monitors the banking and monetary system in the country.
In India, the Reserve Bank of India is the Central bank it was established in 1935. Some of the prominent central banks include Bank of England. Federal Reserve Bank (USA), People’s Bank of China and so on.
Definitions: - “A central Bank is one which constitutes the apex of the monetary and banking structure of its country, and which performs as best as it can in the national interest, certain functions such as note issue, banker to the government, banker to the banks, and custodian of country’s foreign exchange reserves”.
Central Bank is the apex institution of a country's monetary system that regulates and controls the activities of all the commercial banks and other financial institutions of the country. It plays an important role in the organisation and development of a sound monetary and financial system in an economy.