The Role of the Reserve Bank of India in Indian Economic Governance
The Role of the Reserve Bank of India in Indian Economic Governance The Role of the Reserve Bank of India in Indian Economic Governance Introduction The Reserve Bank of India (RBI) stands as the central banking institution of the Republic of India. Established in 1935 during British rule, the RBI's primary objective is to regulate the issuance and supply of the Indian Rupee and maintain monetary stability within the country. Serving as the custodian of India's monetary and financial system, the RBI operates under the Reserve Bank of India Act, 1934, and functions autonomously, guided by a central board of directors appointed by the Government of India. Monetary Policy and Functions of the RBI One of the central functions of the RBI is to formulate and implement monetary policy in India. Through its Monetary Policy Committee (MPC), the RBI sets key policy rates such as the Repo Rate, Reverse Repo Rate, and Marginal Standing Facility (MSF) Rate to regulate liquidity and inflation...