Role of Reserve Bank of India (RBI)
Implementing monetary policy is the RBI’s main responsibility. The policy interest rate necessary to meet the inflation objective is chosen by the Central Government’s Monetary Policy Committee (MPC), which was constituted pursuant to Section 45(B). To encourage economic expansion, the RBI also carries out economic research. It is in charge of overseeing the design, manufacture, and administration of the country’s currency in order to maintain a sufficient supply of authentic and clean notes. Except for the one rupee note, which is issued by the Ministry of Finance, the bank is authorized to issue currency notes under Section 22 of the RBI Act. The Reserve Bank gets coins upon request from the Government of India, which is the coin-issuing authority.
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