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RBI Related Questions

posted Feb 28, 2012, 1:25 PM by Rishi Gangoly   [ updated Feb 28, 2012, 1:25 PM ]
  • What is the purpose of RBI? 
  • Does India have a Gold Standard? 
  • Or does the RBI print money in the same manner as the Federal Reserve in the US? 
  • Is India also in debt because of this? 
  • Why does India money from the World Bank? 
  • Can't we print money ourselves? 
  • How does one get more information about all of this? 
  • I could not find the answer to these questions on the RBI Website. 
  • How does one contact RTI? 
  • Will that be of use?

Answer


Most of these queries are answered in Q. 12 & 13. 

Rest are answered as follows: 
  • India borrows from the World Bank because it cannot buy all the resources it needs. 
  • A lot of debt in India is primarily because of money being (mostly) fiat, as well as foreign borrowing. 
  • The RBI has hired a couple of agencies in the past to print money. (From Wiki: Currency notes are printed at the Currency Note Press, Nashik, Bank Note Press, Dewas, Bharatiya Note Mudra Nigam (P) Limited presses at Salboni and Mysore and at the Watermark Paper Manufacturing Mill, Hoshangabad.) Only they can print money legally, under the complete authority of RBI. Yes, we can print money too, but this will be counterfeit money and we will go to jail for it. 
  • RBI contacts are mentioned on the RBI website.