Reserve Bank of India (RBI) is the central banking authority of India. It manages the different policies regarding Indian currency (Rupee). It also plays a critical role in development policies of Government of India.
|Seal of RBI|
- RBI was established on 1st April, 1935. It was constituted under the Reserve bank of India Act 1934. On the recommendation of Hilton Young Commission in 1926. At that time it was a privately owned institution. After the independence of India, it was nationalized in 1949.
- RBI is controlled by the Central Board of Directors. Indian government appoints the directors for four years tenure. The central board of directors comprises Governor, four deputy governor and fifteen directors.
- The first governor of RBI was Sir Osborne Smith (1935-1937). The first Indian governor was CD Deshmukh (1943-1949). Manmohan Singh is the only Prime Minister who also was a Governor of RBI. Current Governor is Raghuram Rajan.
- At first RBI’s main office was located in Kolkata. It was moved to Mumbai in 1937. It has four zonal offices and about 22 regional offices. It also runs two training colleges-Reserve Bank Staff College at Chennai and College of Agricultural Banking at Pune.
- Its financial year is from 1 July to 30 June. The emblem of RBI is a tiger and a Palm tree.
Some Main functions of Reserve Bank of India
|It is solely responsible for creating notes of all domination.|
|It acts as a central bank for the other commercial banks. It also helps in interbank fund transfer.|
|It is the main monetary authority of India.|
|It regulates the credit and currency system in India.|
|It maintains public confidence in the banks, protects depositors interest and provides cost-effective banking services to the public.|