The reserve Bank of India (RBI) was established under a special act of the parliament, the lays down the objects, power and functions of the corporation. It was established on 1st April 1935 in accordance with the provisions of RBI act 1934. RBI formulates implements and monitors the monetary policy and it's main objective is to maintain price stability which keep in mind the objective of growth. How will you classify the RBI as a form of public sector enterprises ? Also states merits of this type of public sector enterprise.
Dear student Public enterprises formed by special act of Parliament are known as Statutory Corporation. These corporation are also known as public corporation. Capital in these type of corporation is provided wholly by the government. There function, power and management are define by the Parliament. As all these features are for RBI too which implies RBI is a public sector enterprise. MERITS of these type of public sector enterprise are 1.Essential services are provided. 2.Everyone shares in the profit from public ownership. 3.Wasteful duplication of services is eliminated. 4.Planning can be co-ordinated through central control Regards