Briefly discuss the advisory function of the Reserve Bank.
Like all central banks, the Reserve Bank also acts as adviser to the government not only on banking and financial matters but also on a wide range of economic issues including those in the field of planning and resources mobilisation.
The Bank’s advice is sought on different aspects of formulation of the country’s five-year plans such as the financing pattern, mobilisation of resources and institutional arrangements with regard to banking and credit matters. The bank has also to tender advice to Government on various matters of international finance.
It has, of course, a special responsibility in respect of financial policies and measures concerning new loans, agricultural finance, co-operative organisation, industrial finance and legislation affecting banking and credit.
