Banking Awareness Question Day 4: Check Here about Origin, History and Functions Of RBI
The Reserve Bank of India is India’s central bank, responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system. It also manages the country’s main payment systems and works to promote its economic development.
Reserve Bank of India (RBI) is the Central Bank of India. RBI was established on 1 April 1935 by the RBI Act 1934. Key functions of RBI are, banker’s bank, the custodian of foreign reserve, controller of credit and to manage printing and supply of currency notes in the country.
Check here for detail information about the Reserve Bank of India (RBI)
- RBI was established on 1st April 1935.
- RBI was established via the RBI Act 1934, so it is also known as a statutory body.
- RBI was established under the recommendations of a committee called “Hilton Young Commission”.
- RBI is also known as the Central Bank of India.
- RBI is also known as the Bank of last resort/Banker’s bank/Government’s bank.
- Initially, the Headquarter of RBI was established in Calcutta but permanently moved to Shahid Bhagat Singh Marg in Mumbai in 1937.
- RBI was nationalized on 1st January 1949.
- Initially, RBI was privately owned, then it was owned by the Government of India.
- The Reserve Bank’s work is governed by a central board of directors.
- Tenure of RBI governor is 3 Years and it can be extended by two years.
- The Board is appointed by the Government of India for a period of four years.
RBI has a full time governor and not more than four Deputy Governors.
Urijit Patel is the Present Governor of RBI.
Four Deputy Governors of RBI are:-
1. N.S. Vishwanathan
2. Viral. V. Acharya
3. B.P. Kanungo
4. Mahesh Kumar Jain ( IDBI CEO)
Non Officials Directors:-
Ten Directors from various fileds and two government officials which are nominated by Government.
Four Directors from four local boards.
RBI has four Local Board Offices. These offices are located in:-
1. New Delhi
Emblem of RBI:-
Panther and Palm Tree
Main Functions of RBI:-
1) Monetary Authority:
Formulates implements and monitors the monetary policy.
2) Regulator and supervisor of the financial system:
Prescribes broad parameters of banking operations within which the country’s banking
and financial system functions.
3) Manager of Foreign Exchange:
Manages the Foreign Exchange Management Act, 1999.
4) Issuer of Currency:
Issues and exchanges or destroys currency and coins not fit for circulations.
5) Development role:
Performs a wide range of promotional functions to support national objectives.
6) Bankers to the Government:
Performs merchant banking function for the central and the state governments; also
acts as their banker.
7) Bankers to banks:
Maintains banking accounts of all scheduled banks.
Some Important facts related to RBI:-
- The first Governor of the Reserve Bank of India from 01.04.1935 to 30.06.1937
was Sir Osborne Smith
- RBI is the sole authority in India to issue Bank notes in India.
- C D Deshmukh (Chintaman Dwarkanath Deshmukh) was the governor of RBI at the Time of nationalization of RBI in 1949.
- K.J.Udeshi. was the first women Deputy Governor of RBI.
- RBI is not expected to perform the function of accepting deposits from the general
- RBI decides the following rates namely;
Reverse repo rate
Cash reserve ratio