Introduction of RBI, evolution of RBI & growth of RBI.

1. RESERVE BANK OF INDIA
(EVOLUTION & GROWTH)
SUBMITTED BY:
Akanksha shukla
Bhargavi singh tanwar

2. The Reserve Bank of
India is
India's central
banking institution,
which controls
the monetary
policy of the Indian
rupee.
The bank is also
active in promoting
financial inclusion
policy and is a leading
member of
the Alliance for
Financial
Inclusion (AFI).
The bank is often
referred to by
the name Mint
Street.
It commenced its
operations on 1
April 1935 during
the British Rule in
accordance with
the provisions of
the Reserve Bank of
India Act, 1934.
The general
superintendence and
direction of the RBI is
entrusted with the
21-member Central
Board of Directors.

3. 1. PROPOSED
SETUP OF GENERAL
BANK
The evolution process of RBI may
be traced to the efforts to set up a
banking institution in 1773 when
Warren Hastings, Governor of
Bengal in British India proposed his
Plan for a ‘General Bank in Bengal
and Bihar’, which was set up in
April 1773.
The project was, however, short-
lived and the bank closed in 1975.

4. 2. RECOMMENDATION OF CHAMPERLAIN
COMMISSION,1914
There were prolonged debates,
without reaching a conclusion or
consensus, on proposals of
amalgamation of the three
presidency banks and the
establishment of a separate
central bank.
It was in the early 20th century that
consequent to the
recommendations of the
Champerlain commission
(1914),the Imperial Bank of India
was constituted in 1921 to carry
out the functions of central banking
in addition to commercial banking.

5. The recommendations of the Hilton Young Commission, which
submitted its Report in 1926, took the central banking philosophy in
India close to international thinking. It recommended the
establishment of a central bank to be designated the Reserve Bank of
India, to solely perform central banking functions.
Accordingly, a bill to establish RBI was introduced in
Parliament & passed in 1934 & the RBI Act came into
force on January 1,1935.
The Reserve Bank was inaugurated on April 1,1935 as a
shareholder’s institution. The RBI was nationalised on
January 1,1949 in terms of the Reserve Bank of India
(Transfer to Public Ownership) Act,1948.
3. RECOMMENDATIONS OF THE HILTON
YOUNG COMMISSION

6. The growth of RBI can be seen in different phases:
1935-1950
The Reserve Bank of India
was founded on 1 April 1935
to respond to economic
troubles after the First World
War.
The Preamble of the RBI
describes its basic functions
to regulate the issue of bank
notes, keep reserves to
secure monetary stability in
India, and generally to
operate the currency and
credit system in the best
interests of the country.
1950-1960
The Indian government
established, based on the
Banking Regulation Act, a
central bank regulation as part
of the RBI.
In the 1950s, 1ST Prime Minister
Jawaharlal Nehru introduced a
centrally planned economic
policy that focused on the
agricultural sector. The central
bank was ordered to support
economic plan with loans.

7. 1960-1969
As a result of bank crashes, the
RBI was requested to establish
and monitor a deposit insurance
system. It should restore the trust
in the national bank system and
was initialized on 7 December
1961.
The government of India
restructured the national bank
market and nationalized a lot of
institutes. As a result, the RBI had
to play the central part of control
and support of this public
banking sector.
1969-1985
As a result of
nationalisation of
commercial banks in
1969 & 1980,the
central bank became
the central player and
increased its policies
for a lot of tasks like
interests, reserve ratio
and visible deposits.

8. 1991-2000
The central bank founded
a subsidiary company—
the Bharatiya Reserve
Bank Note Mudran Private
Limited—on 3 February
1995 to produce
banknotes.
Since 2000
The Security Printing &
Minting Corporation of
India Ltd., a merger of nine
institutions, was founded
in 2006 and produces
banknotes and coins.
The national economy's
growth rate came down to
5.8% in the last quarter of
2008–2009 and the central
bank promotes the
economic development