Who is the monetary authority of the country and what is its role?

Question: Who is the monetary authority of the country and what is its role?

Answer:

• Reserve Bank of India is the monetary authority of country. It acts as a banker to the government. RBI formulates implements and monitors the monetary policies as well as it has to ensure an adequate flow of credit to productive sectors.
• RBI acts as issuer of the currency.
• RBI also performs promotional functions to support national objectives and industries
• RBI is lender to last resort
• RBI act as a Banker bank.