However, the RBI is now fully owned by the Government of India post-nationalisation in 1949. The RBI accepts money on behalf of the government and also makes payments for the Government. The RBI is also the regulator and supervisor of the financial system in India. The Foreign Exchange Department facilitates external trade and payment and also assists in the development of India's foreign exchange market. This department of the RBI also oversees the rehabilitation of poorly functioning banks. RBI began operation since 1935, and stood at the centre of Indias financial system, with a fundamental commitment to maintaining the nations monetary and financial stability. As RBI is all about Banking, so its obvious to give more attention towards economic topics. Pursuant to this power, the RBI can determine the policy in relation to advances that is to be followed by all banks or by any specific bank. Commercial banks are expected to keep deposits with the RBI and when necessary they borrow from the RBI (the RBI functions as a lender of last resort to the commercial banks).
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They are headed by senior officers in the rank of Chief General Manager. Over the years, our specific roles and functions have evolved. Provided such minimum was maintained by the RBI the volume of currency that can be issued by the RBI is not curtailed. Last visited on 28/3/2010 Cite This Essay To export a reference to this article please select a referencing style below: All Answers ltd, 'Role of Reserve Bank LawTeacher ' (t, August 2018) p?vref1 accessed Reference Copied to Clipboard. Food Security and the Climate Change. The power of such regulation is vested in the RBI by virtue of the Banking Regulations Act, 1949 and the Reserve Bank of India Act, 1934. Commercial banks maintain accounts with the RBI and borrow money from it when required. This section shall discuss the role of the RBI as a regulator of the financial sector in India. In section III, the author shall elaborate upon the organisational structure of the RBI and in section IV the author shall elaborate upon the specific role of the RBI as a regulator. The Central Board of Directors governs the affairs of the RBI. Hello Readers, Hope you all are doing fine and enjoying your preparation.