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Answer Posted / deepak
The RBI is India's central bank. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
RBI acts as a banker to the Government and Banks.
The Central Bank maintains record of Government revenue and expenditure under various heads. It maintains deposit accounts of all other banks and advances money to other banks, when needed.
Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods.
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