role of rbi in the indian banking system
Reserve Bank of India is India's central bank, headquartered at Bombay. Central bank of a country execute multiple functions such as overseeing monetary policy, issuing currency, managing foreign exchange, working as a bank of government and as banker of scheduled commercial banks, etc. It also works for overall economic growth of the country. The Reserve Bank of India was established in 1935 with the provision of Reserve Bank of India Act, 1934. Though privately owned initially, it was nationalised in 1949 and since then fully owned by Government of India (GoI). The preamble of the Reserve Bank of India describes it main functions as: