RBI full form is the Reserve Bank of India. To know about the primary and fundamental objectives of RBI, achievements of RBI and functions of RBI read this blog. There are many B COM subjects that will provide you with the highest-paying jobs such as CA( Chartered Accountant) with a salary of 6-7 lakhs per annum.
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What is the full-form RBI?
RBI stands for Reserve Bank of India. In 1935 RBI was created which is the National Bank of India. The nation’s finance system is under RBI. Therefore, being a regulator and supervisor of the nation’s finance system RBI ensures that the financial system’s stability is maintained. Moreover, RBI headquarters is situated in Mumbai.
What are the objectives of RBI?
The objectives of RBI consist of primary and fundamental objectives:
Primary Objectives:
In 1935, as per the act of the Reserve Bank of India, there are some of the primary objectives which are:
- The Reserve Bank of India prints the notes and the coins.
- For securing monetary stability the RBI maintains reserves.
- RBI runs the credit systems and currency of the nation so, that the valid amount of the notes should be there in the national economy.
Fundamental Objectives:
Central banking functions are done to the fundamental objectives of the Reserve Bank of India.
- Reserve Bank of India is known as the banker of all banks in the nation. Also, RBI provides financial services to all the banks that are available in India.
- RBI is the only bank with has the authority to print the notes and provide it to the other banks.
- All of the savings and reserves of the government are stored in the RBI. RBI is also known as the banker of the government.
Achievements of the Reserve Bank of India
Achievements of the Reserve Bank of India are:
1. Flexible Monetary Policy
2. Stable structure of Interest rates
3. Modern Banking and Credit Structure
4. Cheap payment facilities
5. Successful management of Public debt
6. Exchange Stability
7. Increase Public Confidence in the Public sector
8. RBI has a central authority of the Indian Money Market
9. Development of Bill Market
10. Rational Allotment of Credit
11. Stability in Monetary policy
12. Economic Development Contribution
What are the functions of RBI?
1. Banker of Government:
RBI keeps the funds or reserves of the government. RBI also works as an agent or advisor to the government. Also, it provides useful financial and economic policies to the state and national governments that where should they spend their monetary funds and where not. Moreover, RBI is in charge of the public debt of the government.
2. Banker’s Bank:
RBI provides finance to all the banks in the nation and also known as the banker’s bank.
3. RBI is known as the Credit Controller:
RBI rechecks the credits that are generated by commercial banks. Therefore, Reserve Bank of India controls and regulates the credit flow of the country. RBI tightens the money supply in the nation when it knows that there is enough money in the economy and it will lead to an increase in the price of the goods and services.
4. Custodian of Foreign Reserves:
In order to maintain stable foreign exchange rates, the Reserve Bank buys and also sells foreign currencies and safeguards the nation’s foreign currency funds. The RBI sells foreign currency in the foreign exchange market whenever the economy’s supply of it declines, and vice versa. India now keeps a reserve of foreign currency of roughly $487 billion.
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FAQs
What is the name of the CEO of RBI?
Shaktikanta Das is the name of the present Governor of the RBI.
Where does RBI headquarters situate?
RBI headquarters is situated in Mumbai and also mints are divided into Kolkata, Hyderabad, Noida and Mumbai.
SBI vs RBI: Which one is better?
RBI is known as the banker of the banks and also has authority over monetary policies and then, SBI the State Bank of India is the largest public sector bank.
