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- It exercises credit controls.
- It is the Government’s banker, agent and adviser.
- It has the sole right to issue paper currency of all the denominations.
- It is also the banker’s bank and the lender of the last resort.
- The RBI is the custodian of foreign exchange reserves and has a key role in maintaining the exchange rate of rupee.
- It acts as an agent of the Government of India to the International Monetary Fund