The Reserve Bank of India (RBI) was established in 1935 and nationalized in 1949. It regulates the country's banking system, currency, and credit. The RBI maintains monetary stability, a stable exchange rate, and balanced economic growth through its various departments that oversee currency, banking operations, supervision, policy, and more. Key roles of the RBI include issuing currency, acting as a bank to banks and the government, managing foreign exchange rates and credit, supervising banks, and promoting development of the financial system.
2. ๏ Central bank of India.
๏ Established in 1935 and nationalized in 1949
๏ According to RBI Act, โto regulate the issue of
bank notes and keeping of reserve with a
view to secure system of country to its
advantage
3. The main objectives are as follows:
๏ To maintain the monetary and credit system
of the country
๏ To stabilize internal and external value of
rupees
๏ For balanced and systematic development of
banking in the country
๏ For the development of organized money
market in the country
๏ For proper arrangement of agricultural
finance
4. ๏ For proper arrangement of industrial
finance
๏ For proper arrangement of public debts
๏ To establish monetary relations with the
other country and international financial
institution
๏ For centralization of cash reserves of
commercial banks
๏ To maintain balance between demand and
supply of currency
5. ๏Governor-1,
๏Dy. Governors- 4 ,
๏Govt. official -1
๏Directors nominated by govt.-10
๏Directors nominated from 4 local
boards-4
Central Board of Directors-20
6. Some of the departments in RBI are:
๏ Customer service department
๏ Department of banking operations and development
๏ Department of banking supervision
๏ Department of communication
๏ Department of currency management
๏ Department of economic and policy research
๏ Department of expenditure and budgetary control
๏ Department of external investment and operations
๏ Department of government and bank accounts
๏ Department of information technology
๏ Department of non banking supervision
7. ๏ Assisting the government in establishing
specialized financial institution-IFCI, SFCs,
IDBI,ICIC, NABAD, IDFC
๏ Expanding the banking system-
๏ Relationship with the Government.-
๏ Regulating and supervising
๏ Managing the money market
๏ Developing the payment system-RTGS,
MICR
8. Traditional function
๏ Issue of Currency Notes
๏ Banker to other Banks
๏ Banker to the Government
๏ Exchange Rate Management
๏ Credit Control Function
๏ Supervisory Function
9. Promotional function
๏ Development of the Financial System
๏ Development of Agriculture
๏ Provision of Industrial Finance
๏ Provisions of Training
๏ Collection of Data
๏ Publication of the Reports :
๏ Promotion of Banking Habits
๏ Promotion of Export through Refinance