(i) India's representative in World Financial Institutions
(ii) Regulator and supervisor of Indian Banking System
(iii) Monetary authority
(iv) Closely monitoring economic parameters
(v) Promptly responding to new challenges

Relation between bank rate and other interest rates:
Bank rate policy will be successful only if the lending rates of banks change corresponding tothe movement of bank rate.
Existence of eligible bills:
The existence of eligible bills with commercial banks is a necessary condition for the effectiveness of bank rate policy.
Practice of rediscounting:
It can succeed only if commercial banks have the practice of rediscounting eligible bills with the Central bank.
No direct relation between interest and investment:
According J.M. Keynes it is difficult to establish a direct relationship between the changes in rate of interest on the one side and investment on the other side.

Government of India on the recommendation of the RBI carried out demonetization on November 8, 2016 in order to;
i) To crack a whip against black money
ii) Drive out counterfeit currency in circulation
iii) Formalization of cash dependent business, and
iv) Dismandling the financial strength of terrorism and naxalism.

According to Banking Regulation Act 1949, "Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and with drawable by cheque,draft, pay order or otherwise".

Government of India on the recommendation of the RBI carried out demonetization on November 8, 2016 in order to : -
i. Drive out counterfeit currency in circulation.
ii. To crack a whip against black money.
iii. Formalization of cash dependent business and
iv. Dismandling the financial strength of terrorism and naxalism.