what are the functions of central bank ?

Central bank (RBI in India) is the apex monetary authority which prints and issues currency, governs all the commercial banks, controls the money supply in the economy and regulates the interest rates. The following are a few important functions that are performed by a central bank.

1. Banker's bank

2. Lender of last resort

3. Banker to the government

4. Supervise the entire banking system

5. Custodian of foreign reserves and currency with the economy

6. Clearing house functions

7. Regulates interest rates and flow of credit and money supply in the economy

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A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country

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In the monetary and banking setup of a country, central bank occupies central position and perhaps, it is because of this fact that this called as the central bank. In this way, this bank works as an institution whose main objective is to control and regulate money supply keeping in view the welfare of the people. Central bank is an institution that fulfills the credit needs of banks and other credit institution, which woks as banker to the banks and the government and which work for the economic interest of the country.

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