Why reserve bank of India has limit to print the money.?
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Answer (1)
27th Dec, 2019
Hello Rohith,
The reserve bank of India is a government bank, and the head of all banks. It has a limit to print money. No country can print as much money as it wants. Printing more money will decrease the value of that currency in the international market. You may use the simple rule of demand and supply here. Therefore there is a limit of money that RBI can print. Also a country can print 2–3% of the total Gross Domestic Production. But generally developing countries print more than that, causing weaking of their currencies.
Hope this helps
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