Financial markets are very important to the growth and progress of an economy because they make it easier to share risks and use resources efficiently. The Reserve Bank has always put a lot of effort into developing financial markets because they are so important. As a result, the Reserve Bank has been working with the Government and other interested parties to make sure that financial markets are safe and stable. This is done by increasing the depth and width of financial markets and making sure that traders have the right products for managing risk and finding good prices. As part of this strategy, it aims to increase market size by making it easier for people to join, encouraging new ideas, keeping users safe, and encouraging fair behaviour. RESERVE BANK OF INDIA ACT