Detail about reserve Bank of India act ,1934

 

The Reserve Bank design and implement the regulatory policy Framework for banking and non banking financial institution with the aim of providing people acess to the banking system, protecting depositor interest, and maintaining our health of the financial system. Its function of regulating the commercial banking sector, which emerged with the enactment of Banking Regulation Act, 1949,has over the time expanded to cover other entities amendments to the Banking Regulation Act 1949 brought cooperative bank and regional rural bank under the Reserve Bank deduction while amendments of The Reserve Bank of India Act so Development Finance Institutions, non banking financial companies and primary dealers coming under its regulations, as these entities become important player in the financial system and market.

The function of The Reserve Bank of India can be summarised as under :-

1.Banking functions.

2.Issues Bank notes.

3.Monetary policy function.

4.Public debt function.

5.Foreign exchange management.

6.Banking Regulation and supervision.

7.Regulation and supervision of nbfc. 8.Regulation and supervision of Cooperative banks .

9.Regulation of derivative and money market instrument .

10.Payment and settlement function.

11.Consumer Protection function.

12 Financial inclusive and development function.

The Preamble to the Reserve Bank of India Act 1934 under which it was constituted specify its objective as to regulate the issue of bank note and the keeping of reserves with a view of securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.

These are some main functions of The Reserve Bank of India which are given above.