BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935. The Bank was constituted to. * Regulate the issue of banknotes. * Maintain reserves with a view to securing monetary stability and.

Detailed explanation-2: -The Reserve Bank of India Act, 1934 (RBI Act) was amended on September 29, 2016 by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee(MPC), for maintaining price stability, while keeping in mind the objective of growth.

Detailed explanation-3: -Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.