The Reserve Bank of India has become the world’s first central bank to gain one million Twitter followers.
On April 1, 1935, The Reserve Bank of India (RBI) under the provisions of the Reserve Bank of India Act, 1934
It controls. the credit operations of banks through quantitative and qualitative tools.
The Reserve Bank of India does not deal with the customers .
The Reserve Bank of India has become the world's first central bank to achieve one million Twitter followers .
The main functions of RBI are as follows:-
Issue of Bank Notes:
The Reserve Bank of India has the sole right to issue the currency notes in the country except one rupee note which is only issued by the Finance Ministry of India.
Currency notes issued by the RBI are declared unlimited legal tender throughout the country.
Banker to Government:
As bankers to the government, the Reserve Bank manages the banking needs of the government.
The RBI has to-maintain and operates the government’s deposit accounts.
It makes payments on behalf of the government and collects receipts of funds.
It represents the Government of India as a member of the IMF and the World Bank.
Custodian of Cash Reserves of Commercial Banks:
The commercial banks hold deposits in the RBI and the latter has the custody of the cash reserves of these banks.
Custodian of Country’s Foreign Currency Reserves:
The Reserve Bank has the authority for the custody of the country’s reserves of international currency, and this enables the Reserve Bank of India to deal with a crisis situation and connected with an adverse balance of payments position.
Lender of Last Resort:
The commercials bank come to the reserve bank of India at the time of emergency crisis to tide over financial difficulties, and RBI provided financial, help and might be charged a higher rate of interest for that lending money.