The Reserve Bank of India (RBI) is responsible for regulating the financial transactions in India and serves as the central bank of the country. Some of the main functions of the RBI are:

• Issuance of Currency: The RBI prints and issues currency notes and coins, except for the one rupee note and coin which are issued by the Ministry of Finance.

• Banker to the Government: The RBI serves as the banker to the Union of Indias national and state governments. It manages the deposit accounts of the government and provides them with loans when needed.

• Regulation of Credit and Currency: The RBI regulates the credit and currency system in India. It controls the money supply and raises or lowers interest rates to control inflation and regulate the cash flow in the market.

• Banker to Banks: The RBI acts as a banker to other banks in India. It provides loans to other banks in India for certain reasons such as client lending and serves as a final resort for all banks in financial difficulties.

• Custodian of Cash Reserves: The RBI is responsible for maintaining the cash reserves of commercial banks in India.

• Custodian of Foreign Exchange Reserves: The RBI maintains a reserve of foreign currencies that enables it to deal with any crisis situation.

• Developmental Role: The RBI promotes national objectives that encourage rural and agricultural economic development. It regularly issues directives to commercial banks to lend loans to small-scale industrial units.

In summary, the RBI performs a wide range of functions that are critical to the functioning of the Indian economy.