The top bank, the Reserve Bank of India (RBI) is like the boss of all the banks in the country. It has an important role in the banking sector. Here's what the RBI does:
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Make Rules
The RBI makes rules and guidelines for all banks to follow. These rules help the banks work in a fair and honest way.
Print Money
The RBI is in charge of printing money. The rupee notes and coins that we use to buy things are printed by RBI. They have a special machine to print money and only they are authorized to do so.
Control Interest Rates
The RBI decides how much interest the banks can give us when we save money in our bank accounts. They also decide how much interest we have to pay when we borrow money from the bank.
Keep Money Safe
The RBI helps to keep our money safe in the banks. They make sure that the banks have strong lockers and security systems so that nobody can steal our money. They also check if the banks are following all the rules to protect our money.
Help in Crises
Sometimes, there are problems in the banking system or the economy. In those times, the RBI comes to the rescue. They take special steps to solve the problems and make sure the banks and the economy become strong again.
So, the Reserve Bank of India is there to make rules, print money, control interest rates, keep our money safe, and help in difficult times.
