The Reserve Bank of India has the sole right to produce currency notes of all denominations in the country. Other than this, it has many other functions.
The RBI is responsible for formulating, implementing, and monitoring the monetary policies in the country. It also means that the bank takes care of maintaining price stability within the country.
Acting as a governmental agent, the RBI distributes coins all over the country. It is also known as a ‘banker’s bank’, as it provides aid to all other banks functioning in the country. Every bank has to have a license from the RBI for operating within the country.
The RBI performs me-chant banking functions for the central and state governments, and manages the country’s foreign exchange too.
The bank is also responsible for exchanging and destroying currency notes that are unfit for circulation. These are just some of the functions of the RBI.