A central bank is the most important institution of the country which is responsible for safe-guarding its financial stability and thus it is guided not by profit motive but by the principle of maximum welfare of the society.
It controls and monitors all the activities, directly or indirectly of all other banks. It holds the ultimate reserves of the nation, controls and supply of money and acts as the banker to the state. It performs many other important functions. It sees that the monetary policy is formulated as according to the conditions of the economy and sees towards its implementation. It issues notes and currencies within the country and is entrusted with responsibility of maintaining the price level in the country stable. It acts as bank to the government and it directly or indirectly controls the activities of all other banks.
It controls and monitors all the activities, directly or indirectly of all other banks. It holds the ultimate reserves of the nation, controls and supply of money and acts as the banker to the state. It performs many other important functions. It sees that the monetary policy is formulated as according to the conditions of the economy and sees towards its implementation. It issues notes and currencies within the country and is entrusted with responsibility of maintaining the price level in the country stable. It acts as bank to the government and it directly or indirectly controls the activities of all other banks.
