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Explain in brief the function of central bank- ( i) Banker’s Bank (ii) Issuing Authority of currency and notes |
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Answer» Answer: i) Banker’s Bank Central bank is the apex bank of all the COMMERCIAL BANKS and financial institutions in the country. It holds the same relationship with the commercial banks as commercial bank holds with its customer. The central bank accepts deposits from the commercial banks and holds it as reserves for them. ii) Issuing Authority of currency and notes The Reserve Bank is the nation's sole NOTE issuing authority. ALONG with the Government of India, we are responsible for the design, production and overall management of the nation's currency, with the goal of ensuring an ADEQUATE supply of clean and genuine notes. |
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