Central bank is that bank in which the only power of issued currency notes. It can issued the notes on the authority and behalf of the government. It is the controller and guardian of the money market. It is the last lender of the money resort. As customer deal with the commercial bank, only commercial bank deal with the central bank . customer are not directly deal with the RBI (central bank). It can raised and reduced the money in the market at any time.
Definition of central bank:
- Acc. to De Kock,” central bank is a bank which constitutes the apex of the monetary and banking structure of the country”.
- Acc.to bank of international settlement,” A central bank is a bank in any country to which has been entrusted the duty of regulation the volume of currency and credit in that country”.
- Acc.to veera smith,” the primary definition of central bank is the banking system in which a single bank has either a complete or residual monopoly of note issue”.
