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