Reserve Bank of India (RBI)

RBI, India's Central Bank came into existence on 1stApril 1935 as a private share holders bank. Note : 1st Central Bank in the world : Rick's Bank Sweden in 1656. But in the light of unctions, Bank of England is the 1st Central Bank 1694.

Functions of RBI : 

• Monopoly of Note issue
• Banker, Adviser and Agent to the Govt. of India
• Banker to Banks
• Custodian of Foreign exchange and gold.
• Re-discounts bills of exchange and hundis.
• Lender of last Resort
• Maintains stability of foreign value of Rupee.
• Acts as clearing house
• Credit control

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