Important Facts About Reserve Bank Of India History, About And Objectives.
The Reserve Bank of India (RBI) is the Central Bank of India, also known as Banker’s Bank. The monetary and other banking policies of the Government of India are governed by the Reserve Bank. The Reserve Bank of India (RBI) was established on 1 April 1935 under the Reserve Bank of India Act 1934. The Reserve Bank of India has been in Mumbai since 1937.
HISTORY OF RBI
The Federal Reserve Bank of India or RBI is that the financial institution of the country. Central banks are relatively recent innovations, and most central banks, as we know them today, were established in the early 20th century.
The Federal Reserve Bank was formed on the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the legal basis for the operations of a bank that commenced operations on 1 April 1935.
Bank was formed
- Manage issue of notes
- Maintain reserves to ensure cash stability
- Operate the country’s credit and currency system for its benefit.
The bank has commenced operations from the Government of India, including Comptroller of Currency, Imperial Bank of India, Government Accounts and Public Debt. The existing currency offices at Kolkata, Bombay, Madras, Rangoon, Karachi, Lahore and Kanpur (Kanpur) became the branches of the issue department. The banking department has established offices in Kolkata, Bombay, Madras, Delhi and Rangoon.
Burma (Myanmar) left the Indian Union in 1937, but the Reserve Bank remained Burma’s central bank until the Japanese invasion and later in April 1947. After the partition of India, he acted as the central bank, until June 1948, when the State Bank of Pakistan was operational. The bank, originally formed as a shareholder, was nationalized in 1949.
An interesting feature of the Reserve Bank was that it was initially seen as a role in the context of the bank’s development, particularly in agriculture. As India began its project efforts, the bank’s development role became particularly noticeable in the sixties, when the RBI introduced the concept and practice of using finance to stimulate growth in many ways. The bank also played an important role in institutional development: – Deposit Insurance, Credit Guarantee Corporation of India, Unit Trust of India, Industrial Development Bank of India, National Bank of Agriculture and Rural Development, Discounts and Finance to the Country’s Economic Infrastructure.
With liberalization, the bank has shifted its focus to policy, monetary policy, and bank supervision, and regulation, payment system monitoring and financial markets.
ABOUT RBI
The Reserve Bank of India is fully owned and operated by the Government of India.
Introduction to the Reserve Bank the basic functions of the Reserve Bank are described as:
– Controls the issue of notes
– Ensuring monetary stability in India
– Monetary policy framework is being upgraded to meet financial challenges.
The Reserve Bank of India is governed by a central board of directors, with a 21-member central board of directors appointed by the Government of India under the Reserve Bank of India Act.
ORGANISATION OF RBI
The Central Board of Directors includes:
- Direct Practical Director – Four Deputy Governors appointed / nominated by the Governor for four years
- Non-official directors – ten directors and two government officials from different fields.
Organization Structure of RBI –
Central Board of Directors
Governor
Deputy Governors
Executive Directors
Principal Chief General Managers
Chief General Managers
General Managers
Deputy General Managers
Assistant General Managers
Managers
Assistant Managers
Support Staff
OBJECTIVES OF RBI
The primary objective of the Reserve Bank is to initiate oversight and financing of the financial sector, which includes commercial banks, financial institutions and non-banking finance companies (NBFCs).
Some of the major projects are:
- Reorganization Bank Check
- Strengthen the role of statutory auditors in the banking system
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