Main Functions

• Monetary Authority: \n** Formulates, implements and monitors the monetary policy. \n** Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.
• Regulator and supervisor of the financial system: \n** Prescribes broad parameters of banking operations within which the country's banking and financial system functions.\n** Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
• Manager of Exchange Control: \n** Manages the Foreign Exchange Management Act, 1999. \n** Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
• Issuer of currency: \n** Issues and exchanges or destroys currency and coins not fit for circulation. \n** Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
• Developmental role \n** Performs a wide range of promotional functions to support national objectives.
• Related Functions \n** Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. \n** Banker to banks: maintains banking accounts of all scheduled banks.

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