The conversation between human and AI assistant.
What is the imporatnace of RBI for economy?
That's interesting. Can you elaborate on how the RBI regulates the banking sector?
The RBI issues guidelines and regulations for banks and financial institutions, determines and enforces minimum reserve requirements, sets interest rates, and also has the power to take punitive actions against non-compliant institutions. It also acts as a lender of last resort to provide liquidity support to banks during times of financial distress and promotes financial inclusion by focusing on expanding access to banking services.