Non-monetary functions of Reserve Bank of India:

1. Regulatory and supervisory functions:

RBI- controls all the functions of commercial and cooperative banks. It supervises various functions like
(a) licensing of banks,
(b) branch expansion,
(c) liquidity of their assets and
(d) management and methods of working.

2. Promotional functions:

• In India, there are many people who still do not hold bank accounts. Due to this, these people are forced to do all the dealings of money, credit in the unorganized money market.
• This creates problem for the RBI to find out exact National Income of country as they do*not have any track of the money transacted.
• Thus, due to the above mentioned problems faced by RBI, it has to do promotional activities of banks
• RBI encourages people to open bank account and also promotes banks to open their branches in the rural areas where people staying there can take benefit of banking services
• It also promotes setting up of cooperative banks for the interest of people.

3. Financial inclusion and development:

• Owing to India’s highly diversified economy, it becomes difficult for RBI to reach to all sections of people.
• Thus, RBI promotes Financial Inclusion which means providing banking services to low income segments of society at an affordable price.
• It provides special credit facilities to agriculture, small scale industries, self- employed people and cottage industries.
• RBI also manages the Prime Minister Jan Dhan Yojna.
• RBI has made its website very user friendly. It publishes various banking related information and statistics as well as articles of experts on its website. Such publication helps people to promote research related to banking and bringing monetary improvement in the country.