RBI(Reserve bank of India) and it's functions
Functions of RBI
1.RBI as bankers bank
b.As controller of credit- RBI controls controls the credit flow by fixing SLR,CRR and interest rate.
c.As banker to banks-as a lender of last result and grants accommodation to scheduled banks in the form of re-discounting or purchase of eligible bills,loans and advances against certain securities.Also ,liquidity adjustment facility was introduced by RBI in the year 2000 the fund of which are being used by the banks for their day-to-day mismatches in their liquidity.Under this scheme Reverse Repo auctions(for absorption of liquidity) and Repo auction (for injection of liquidity) are conducted on a daily basis.
d.RBI is empowered to collect credit information from banking companies and to furnish such information in a consolidated form to any banking company applying for the same.