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RBI Governor changed - How does it matter?

Other Topics - By: - Karan Gogia - Dated:- 11-9-2016 - You must have realized by now that Mr Rajan exit has been seen via different lenses. Lot of rumors are coming in and some looks really promising. Here my idea for writing this article is not to indulge you in one more rumor but to help you understand how does it matter if Mr X or Mr Y is appointment as RBI Governor. What does RBI or its governor really do? and why it important? To whom it matters? RBI has following functions to perform. Not .....

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in my later post in very detail. RBI has a separate department for issuing of currency and its assets and liabilities are kept separate from the other assets and liabilities arise due to other function of central bank namely the Banking function. Does central bank earn any profit when it print the money?? - Ans is yes. Then what RBI do with this profit?? Now hold on your breath. This profit goes to government of India. Yes it is government of India who owns the central bank and is entitled to an .....

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eposit their surplus funds with the Central bank and take loan whenever required. This looks simple???right??- Actually it is not. Just think from the angle that how about you own the bank where you have saving/FD account? What will you do??. This is true for central government which owns central bank and deposit and take loan from the central bank. Now take a deep breath and imagine a situation where you are the creator of the money and there are other banks standing in a queue asking for loans .....

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