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CENTRAL BANK

You people need to search a number of sites to get through this topic but now you don't need to search elsewhere , Here's the complete information regarding Central bank.
What is Central bank..??
~ Every country has an apex Institution which is a leader of money market & generally known as central bank of RBI.



Functions of Central Bank   :-

*) Issue of notes or Currency Authority:-  In India central bank in RBI issues notes accept one Rupees note in country.

*) Controller of Credit or Money supply:-
The most important function the central bank has to control is the Credit creation by commercial bank .Receipts & Expenditure on behalf of Government is done by RBI.

*) Banker's bank & Supervisors :-  Central bank performs the function of a bank to all other bank in the country.

*) Banker to the Government :-  The central bank receives & makes payments on behalf of government.

*) Custodian of foreign exchange reserve :-  Central bank acts as a custodian of foreign exchange reserves of a country. All foreign exchange transaction of a country are routed through central bank , it also tries to maintain stability of exchange rates.

*) Lenders of Last Resort :-  Central bank RBI standards ready to help commercial bank on times of crisis.

Comments

  1. Unknown23 March 2018 at 18:33

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    Replies
    1. Deeba's Blog23 March 2018 at 19:50

      Thank you so very much for appreciating ...

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    2. Unknown24 March 2018 at 22:33

      The pleasure is mine...😊

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  2. Deeba's Blog23 March 2018 at 19:51

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