RBI

Key Functions and Responsibilities of RBI:

Monetary Policy: One of the primary functions of RBI is to formulate and implement the monetary policy of India. It regulates the money supply and credit in the economy to achieve the country’s economic goals.

Currency Issuance: RBI is the sole issuer of currency notes in India. It is responsible for the issuance and distribution of currency and coins.

Banker to the Government: RBI acts as the banker and financial advisor to the Government of India. It manages the government’s banking transactions, public debt, and foreign exchange reserves.

Regulator and Supervisor: RBI regulates and supervises the banking and financial sector in India. It formulates banking regulations and supervises banks and financial institutions to ensure financial stability and consumer protection.

Foreign Exchange Management: RBI manages the country’s foreign exchange reserves. It formulates and implements policies to stabilize the foreign exchange market and ensure the stability of the Indian Rupee.

Developmental Role: RBI plays a crucial role in the development and promotion of financial institutions, such as regional rural banks and cooperative banks. It also initiates measures for the development of financial markets in India.

Payment and Settlement Systems: RBI oversees payment and settlement systems in the country, ensuring the smooth functioning of electronic fund transfers, clearinghouses, and other payment mechanisms.

Financial Stability: RBI works to maintain overall financial stability in the country by monitoring and managing risks in the financial system.

RBI is governed by a Central Board of Directors, which is headed by the Governor. Its headquarters is located in Mumbai, Maharashtra. RBI plays a pivotal role in India’s economic development and financial stability.

Here are some of the latest articles on the Reserve Bank of India (RBI) from The Financial Express:

1. “RBI’s VRR auction gets 2.8 times bids”: This article discusses the Reserve Bank of India receiving bids worth Rs 2.77 trillion against the notified amount of Rs 1 trillion from banks at the Variable Rate Repo (VRR) auction. Read more


2. “RBI nod for merchant onboarding”: The RBI has given approval for merchant onboarding in line with its March 2020 guidelines, which require payment aggregators to have a board-approved policy for acquiring merchants. Read more


3. “RBI revises definition of politically-exposed persons for KYC purpose”: The RBI has changed the definition of Politically-Exposed Persons (PEPs) under its norms, a move that will impact Know Your Customer (KYC) procedures. Read more


4. “RBI slaps monetary penalties on five co-op banks”: This article covers the RBI imposing monetary penalties on five cooperative banks due to various regulatory breaches. Read more


5. “CP issuances to rise after RBI expands issuer eligibility”: The RBI’s recent guidelines on Commercial Papers (CPs) and Non-Convertible Debentures (NCDs) are expected to increase CP issuances due to expanded issuer eligibility. Read more

These articles provide insights into the latest developments, policies, and actions of the RBI, reflecting its role in shaping the banking and financial landscape in India.