Write a short note on the Reserve Bank’s role in loan operations
4 years ago
Banking
The Reserve Bank manages the public debt and is responsible for the issue of new loans. The rupee loans of the Central Government are floated in the form of stock certificates and promissory notes through the Public Debt offices of the bank.
The State Governments also avail themselves of the bank’s facilities for the issue of new loans. In view of the bank’s close contacts and an intimate knowledge of the financial markets, it is in a position to advise the Government on the quantum, timing and terms of the new loans. The bank actively operates in the gilt-edged market to ensure the success of loan operation
Susmita Sah
Jan 16, 2022