Mumbai: 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.

A central bank’s functions without a motive of profit, its balance sheets reflect the policy measures it undertakes to address the prevailing economic conditions of the country during a given period, and even if its balance sheet shows losses or negative equity, it can still carry out its functions.

Addressing an international conference on central bank accounting practices organised by the RBI jointly with the SEACEN centre here, the Deputy Governor said that centra

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