2. 1.Monetary Authority
Formulates, Implements and monitors the
monetary policy
Objective-Maintaining price stability and
ensuring adequate flow of credit to
productive sectors
3. What is Monetary Policy?
Monetary policy is the process by which the
monetary authority of a country controls the
supply of money, often targeting a rate of
interest(changes) for the purpose of
economic growth and stability.
GOAL-The official goal usually include
relatively stable prizes and low
unemployment, low and stable inflation.
Monetary policy is associated with interest
rates and availability credit.
4. Monetary Tools
The reserve banks monetary policy
department (MPD) formulates monetary
policy.
There are several direct and indirect
instruments that are used in the formulation
and implementation of monetary policy.
6. 2.ISSUER OF CURRENCY
The banks issues or destroys currency notes
that are not fit for regulation.
3. Bankers to Banks
RBI also work as a central bank where
commercial banks are account holders and
can deposit money.
7. 4.Regulator and supervisor
of the financial system
Prescribes broad parameters of Banking and
financial systems
5. Manager of Foreign
Exchange
To facilitate external trade and payment and
promote orderly development and
maintenance of foreign exchange market in
India .
8. 6.Developmental Role
To support National Objectives and Industries
7. Bankers To government
The Reserve Bank has undertaken the
traditional central banking function of
managing government transactions.
9. 8.Financial Regulation and
Supervision
The Reserve Bank’s regulatory and
supervisory domain extends not only in the
Indian banking system but also to the-
Developmental Financial Institutions(DFIs)
Non Banking Financial Companies(NBFC)
Primary Dealers, Credit Information
companies and select segments of the
financial Markets.