What does the Reserve Bank of India primarily manage?

The Reserve Bank of India (RBI) is the central banking institution of India, and its primary role revolves around managing monetary policy and currency. This includes regulating the supply of money and interest rates in the economy to maintain price stability and facilitate economic growth. The RBI's monetary policy aims to control inflation and stabilize the national currency, ensuring a healthy economic environment.

Additionally, the RBI is responsible for issuing and managing the currency of India, overseeing the payment and settlement systems, and maintaining the overall stability of the financial system. This significant function influences how money circulates in the economy, impacting everything from individual savings to business investments.

Other options mentioned, such as legal proceedings, corporate insolvency cases, and debt recovery, are not the primary functions of the RBI. While the RBI may indirectly affect these areas through its policies, they fall under the purview of other regulatory bodies and frameworks in the country, highlighting the distinct role that the RBI plays in the economic landscape.