What is the role of the Reserve Bank of India (RBI) in the Indian economy?

The Reserve Bank of India (RBI) plays a crucial role in the Indian economy. It is the central bank of the country and is responsible for formulating and implementing monetary policy. The RBI controls the supply of money in the economy, regulates interest rates, and manages foreign exchange reserves. It also acts as a banker to the government and commercial banks, ensuring the stability of the financial system. The RBI is responsible for issuing and regulating the Indian currency, maintaining price stability, and promoting economic growth. Additionally, it supervises and regulates banks and other financial institutions to maintain financial stability and protect the interests of depositors.