RBI is "the lender of
last resort": It means that in the most worst condition the RBI gives loans to
the banks against securities.
Its Functions Are:-
1. Regulatory body of the
banking sector in India & it is the Central Bank of India
2. Custodian of the foreign
exchange reserves of India
3. Advisor to the Govt of India
in the financial matters
4. Represents India in the
International arena such as IMF & World Bank
5. Banker to the bank: It means that no personal
accounts can be opened or operated from the RBI.
6.Controller of the Monetary policy: It controls monetary policy
by issuing 2 types of the measures - Quantitative and Qualitative.