Banker to Government
The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser.
The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir.
The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations.
The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt.
The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters.
The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser.
The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir.
The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations.
The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt.
The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters.