Mumbai, Nov 14
Central banks are unique in two ways, first, they are public policy institutions that operate without any profit motive and second, since they possess the exclusive authority to create money, they cannot go bankrupt in the usual sense, Reserve Bank of India (RBI) Deputy Governor Shirish Chandra Murmu said on Friday.
Despite the differences in mandates, functions or roles across countries, at the heart of every central bank is monetary policy and financial stability.
The Deputy Governor hailed the RBI's accounting practices, saying the entire ownership of the RBI remains vested with the Government of India.
Over the years, the RBI has consistently worked to align its accounting practices with global best practices, while staying true to core principles of prudence and conservatism, he stated.