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.

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