FAQ

What are the functions of RBI?

What are the functions of RBI?

In the Indian context, the basic functions of the Reserve Bank of India as enunciated in the Preamble to the RBI Act, 1934 are: “to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to …

What are the features of central bank?

Functions of a Central Bank:

  • Regulator of Currency:
  • Banker, Fiscal Agent and Adviser to the Government:
  • Custodian of Cash Reserves of Commercial Banks:
  • Custody and Management of Foreign Exchange Reserves:
  • Lender of the Last Resort:
  • Clearing House for Transfer and Settlement:
  • Controller of Credit:

What is the most prominent feature of RBI?

It performs all the banking functions of the State and Central Government and it also tenders useful advice to the government on matters related to economic and monetary policy. It also manages the public debt of the government.

What is the one main role of RBI?

Reserve Bank of India (RBI) is the Central Bank of India. RBI was established on 1 April 1935 by the RBI Act 1934. Key functions of RBI are, banker’s bank, the custodian of foreign reserve, controller of credit and to manage printing and supply of currency notes in the country.

What is RBI Repo Rate?

Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central bank of our country i.e Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control.

What is MSF banking?

Definition: Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Under MSF, banks can borrow funds up to one percentage of their net demand and time liabilities (NDTL).

What is MSF and SLR?

On March 27, 2020 banks were allowed to avail of funds under the marginal standing facility (MSF) by dipping into the Statutory Liquidity Ratio (SLR) by up to an additional one per cent of net demand and time liabilities (NDTL), i.e., cumulatively up to 3 per cent of NDTL.

What is MSF full form?

Doctors Without Borders/ Médecins Sans Frontières (MSF) is an international, independent, medical humanitarian organisation that delivers emergency aid to people affected by armed conflict, epidemics, natural disasters and exclusion from healthcare.

What is Tltro RBI?

The Reserve Bank of India (RBI) on Friday allowed non-bank lenders to access cheap funds raised by banks through the on-tap targeted long-term repo operation (TLTRO) scheme as the central bank sought to boost credit flow to stressed companies.

Category: FAQ

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