(i) Accepting deposits : The Reserve bank accepts deposits from central government, state government and commercial banks but does not pay any interest.
(ii) Advances loans : The Reserve bank offers loans to the central government and commercial banks.
(iii) Borrows loans : The Reserve bank also borrows loans from commercial and foreign banks.
(iv) Sale and purchase of foreign securities : The Reserve bank also sells and purchases foreign securities. But the date of clearance of these securities should not exceed more than 10 years from the date of purchase.
