Advertisements
Advertisements
Question
What is a Central Bank?
Solution
The central bank is a country's leading banking organisation. The central bank is responsible for creating and implementing monetary policy, as well as regulating the financial sector.
- The Reserve Bank of India (RBI) is India's central bank. It was formed in 1935 by the Reserve Bank of India Act, 1934.
- Initially privately owned, it was nationalised in 1949 and has since been wholly owned by the Government of India.
- The central bank is solely responsible for currency issuance.
- It also provides banking services to both government and commercial banks.
- It regulates and supervises all other financial institutions in the country. The central bank promotes economic growth and financial stability, ensuring the general health of the economy.
APPEARS IN
RELATED QUESTIONS
Reserve Bank of India cannot accept deposits from public.
Distinguish between:
Fixed Deposit Account and Recurring Deposite Account.
Explain different types of banks.
What are the objectives involved in Regional Rural Banks?
Mention the purposes of Agricultural and Cooperative banks?
Explain the types of banks based on ownership patterns.
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
Public Banks are the banks which are ______.
The central bank of a country serves as the leader of the banking system and the moneymarket.
______ is the apex institution of the country's monetary and banking structure where as ______ is one of the organs of the money market.
Name the central bank of our country.
Name the largest commercial bank of India.
"A central bank is a bankers' bank." Explain.
What is a commercial bank?
What are the important functions of Central bank? Which of these functions are more important in a country like India?
______ are of several types, e.g., commercial, central, industrial, merchant, exchange, agricultural, cooperative, postal and indigenous.
