The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
The RBI plays an important part in the Development Strategy of the Government of India. It is a member bank of the Asian Clearing Union.
1.The general superintendence and direction of the RBI is entrusted with the 21- member Central Board of Directors:-
4 Deputy Governors,
2 Finance Ministry representatives,
10 government-nominated directors to represent important elements from India’s economy,
And 4 directors to represent local boards headquartered at Mumbai, Kolkata,
Chennai and New Delhi. Each of these local boards consists of 5 members who
represent regional interests, and the interests of co-operative and indigenous banks.
2) Points to remember:
a) It was established in April 1935.
b) It was nationalized in 1949.
c) The first governor of RBI was Sir Osborne Smith.
d) The first Indian governor of RBI was Shri CD deshmukh.
e) RBI can issue note up to 10000.
f) head quarter of RBI is in MUMBAI.
Functions of the RBI-
1. MONETARY AUTHORITY OF INDIA ISSUE OF CURRENCY
2.BANKER AND DEBT MANAGER TO THE GOVERNMENT
3. BANKER’S BANK
4.REGULATOR OF BANKING SYSTEM
5.MANAGER OF FOREIGN EXCHANGE
REGULATOR AND SUPERVISOR of the payment and settlement system
A.RBI was setup on the basis of the recommendation of HILTON YOUNG COMMISSION.
B. Number of regional offices of RBI is 28.