What Are The Basic Functions Performed By The Central Bank?

Central bank is a apex bank of all commercial bank in the country.
1. I regulate and controls the lending capacity of all commercial bank
2. It acts as bankers bank
3.adviser to the governemen

Central bank is the top national institution its chief responsibility is to regulate the flow of money and credit in the country. It seeks to provide monetary conditions favorable to the realization of national objectives, stable prices, steady economic growth, higher employment and a sound international financial position. The important functions of the central bank are as follows:-

Sole right of note issue:
The printing and issue of currency notes is one of the important functions of central bank. The right of note issue is regulated by law, the requirement of the business and in the best interest of the country. The main advantage of giving the monopoly rights of note issue to the central bank are as under:-

• It brings uniformity in the system of note issue.
• The central bank can exercise better control over the money supply in the country.
• It increases public confidence in the monetary system of the country.
• It enables central bank to control the lending operations of the commercial banks.

Banker agent and advisor to government:
The central bank acts as banker agent and adviser to government. As banker to government, it receives deposits cheques and drafts deposited in the government account. So there are many other functions performed by the central bank.