What is/are the main functions of RBI?

The correct answer is All of the above

• As a Central Bank of the country, the RBI performs a wide range of functions. Among various functions important are:
  1. Acts as the currency authority,
  2. Controls money supply and credit,
  3. Manages foreign exchange,
  4. Serves as a banker to the government,
  5. Builds up and strengthens the country’s financial infrastructure,
  6. Acts as the banker of commercial banks,
  7. Supervises banks.
• Few other important functions of RBI include:
  • Reserve Bank of India under the RBI Act, Section 22 is solely accountable for the issuance of currency notes excluding the rupee one-note issued by the Finance Secretary of the Government of India. 
  • RBI acts as a banker to commercial banks.
  • RBI conducts banking and financial operations of the Government of India and advises on various financial and economic issues.
  • While handling the Government business, RBI maintains government accounts, advises on monetary matters including financial aspects, besides carrying out Government business as and when required.
  • It provides financial accommodation to the cooperative banking sector for financing special sectors of the economy like agriculture etc.
  • Bank performs the function of the controller of the exchange value of the rupee vs. the US dollar.
  • Acts As a counselor and manager of banking and financial system, RBI appoints CEOs of Banks and put its members of the Boards of the Bank to guarantee proper Governance and well-defined banking practices.