Synopsis Central banking system (of any country) has an indelible impact on the micro and macro economy factors of a country. The strategies implemented by central banks form the basis for analyzing the significant contributors of economic welfare. It ensures smooth functioning of the economy by protecting the economic interest of a country. As an apex institution a central bank is responsible for streamlining the flows of capital, trade, investment and currencies across GDPs (Gross Domestic Products) and broad moneys and establishing a balance among these factors, which largely influence economic prosperity of a country. On the whole, a country's economic system is largely dependent on the functioning of its central banking system. Central bank performs several functions - as a regulator, as a facilitator, as an advisor and so on. It is important to understand the nature and objectives of a nation's apex financial institution and its contribution to the welfare of nation. This book is significant in its contribution as it proposes to offer insights into the importance of a central banking as a concept, the significance of central bank and various roles that it performs, issues and challenges it addresses in furthering national economic objectives. This book brings out various issues and challenges that a central bank (of any country) faces while delivering its functions, especially in the changing business and economic environment. The objective of the book is to make the reader understand the need and importance of central banking in an economic system.