What is RBI?
- The Reserve Bank of India (RBI) is the central bank of India and It was established under the Reserve Bank of India Act of 1934. The primary objective of RBI is to manage the country’s monetary policy and regulate the banking system to ensure financial stability.
- RBI also manages India’s foreign exchange reserves which help to maintain a stable exchange rate and support external trade and payments. It issues and manages the currency notes and coins in circulation in India.
- RBI’s current governor is Shaktikanta Das, who took charge in December 2018.
Difference Between NABARD and RBI
The Reserve Bank of India and the National Bank for Agriculture and Rural Development are the most important financial institutions in India. Both organizations play a critical role in the economic development of India. But their primary objectives, functions, and roles are different. RBI and NABARD both of them play an essential role in the banking system of India despite their different purposes. RBI ensures the financial system’s stability and oversees the country’s overall monetary policy On the other hand, NABARD focuses on providing banking support to the rural sector and promoting rural development.