Overview of the Reserve Bank of India's Core Functions
The Reserve Bank of India regulates currency, manages reserves, and operates the national credit system to maintain price stability while supporting economic growth.
The Reserve Bank of India, which regulates the issue of bank notes and operates the country's currency and credit system, is tasked with maintaining monetary stability and price stability while supporting growth. The central bank manages reserves to secure monetary stability and operates under a modern monetary policy framework designed to balance these objectives.
The Reserve Bank of India’s statutory mandate, as set out in the Reserve Bank of India Act, directs the central bank to regulate the issue of bank notes and to keep reserves with a view to securing monetary stability in India (RBI). The same legislation charges the institution with operating the currency and credit system of the country to its advantage (RBI).
Over the years, the framework governing those functions has been updated to address structural shifts in the economy. The RBI now works under a modern monetary policy framework designed to meet the challenge of an increasingly complex economy (RBI). Within that framework, the central bank’s primary objective is to maintain price stability while keeping in mind the objective of growth (RBI).
RBI