The conversation between human and AI assistant.
Does India follow the Fractional reserve banking system? Also, Just like the US federal reserve, does the RBI also "loan" out the money printed to the Indian government?
Interesting. And does the RBI "loan" out the money printed to the Indian government, similar to how the US federal reserve does in the US?
Yes, the RBI does have the power to loan money to the Indian government just like the Federal Reserve in the US. However, there are some differences in the functioning and regulations of the two central banks.