Integration of rooftop solar-PV (RTSPV) systems and extensive use of nonlinear loads in the low-voltage distribution system (LVDS) leads to poor power quality (PQ). Therefore, it is necessary to address the issues leading to poor PQ at the point of common coupling of the LVDS. In this article, a multi-band hysteresis current control (MB-HCC) for the multi-functional inverter (MFI) is proposed which improves the efficiency of the MFI and also enhances the PQ of the LVDS. The MB-HCC uses simple switching logic and outperforms in its multi-functional tasks such as active power injection and power conditioning. MB-HCC offers better efficiency over variable double-band HCC (VDB-HCC) as it operates at a lower switching frequency. The performance of the proposed system is simulated by using MATLAB/Simulink and validated by OPAL-RT based real-time simulation studies. During the variation of solar irradiation, the proposed MFI has an average efficiency of 98.5% under the ideal grid and 97.34% under the distorted grid. Moreover, the percentage of Total Harmonic Distortion under ideal and distorted grid conditions is brought down to below 5%, and also, reactive power compensation maintains unity power factor operation complying with the IEEE-519-2014 and 1547 standards. These results substantiate the hypothesis of scalability of the single-phase MB-HCC-based MFI for an LVDS contributing to economy and ecology.