Reserve Bank of India(RBI): भारतीय रिज़र्व बैंक

Establish: 1^st April 1935

Nationalize: 1^st Jan 1949 (According to Act 1948) Reserve Bank of India

Headquarter: Mumbai

Paid-up Capital: 5cr

RBI 1^st Governor: O. Smith

1^st Indian Governor: C D Deshmukh Reserve Bank of India

Financial Year: 1^st July to 31^st June

Minimum Reserve System: 200cr = 115cr (Gold) + 85cr (Foreign Currency)

The Reserve Bank of India, often referred to as the RBI, holds a prominent place in India’s financial history. Established on April 1, 1935, under the RBI Act, it was nationalized in 1949. Its primary mission is to oversee India’s monetary policy, regulate the country’s banking sector, and manage foreign exchange reserves. Over the years, the RBI has played a pivotal role in fostering economic stability and development.

The RBI’s journey began with Sir Osborne Smith as its first Governor, and it has been guided by illustrious individuals like C. D. Deshmukh and Benegal Rama Rau, who made significant contributions to India’s financial system. It has witnessed various phases and transformations, adapting to the ever-changing economic landscape. The RBI has been instrumental in introducing key financial reforms, such as the nationalization of banks in 1969 and the introduction of the Indian Financial Code.

In recent years, the RBI has been at the forefront of digital transformation, emphasizing the promotion of a cashless economy and ensuring the security of digital transactions. Its role during the COVID-19 pandemic as a stabilizing force in the financial sector has been crucial, with measures like loan moratoriums and liquidity support.

• In 1926 “John Hilton Young Commission” recommended to the government to establish a central bank for India. Reserve Bank of India
• John Hilton Young Commission is also known as “Royal Commission” on Indian currency and finance.
• In 1934 RBI (Reserve Bank of India) Act was passed.  reserve bank of India

Board of Director of RBI: Reserve Bank of India

Total Member: 21 Reserve Bank of India

Governor: 1

Deputy Governor: 4 (2 deputy governor appointed by RBI, 1 Deputy governor by the government and 1 Deputy governor is an officer of Commercial Bank)

Director: 4 (Head of a local/zone of RBI)

Director: 10 (Experts & Different Fields)

Government Employee: 2 (Generally, 1 Secretory of Finance Minister)

The function of RBI:

• Prices stability in credit control through monetary policy
• As currency authority
• Regular and supervisory function
• Bankers to the bank
• Bankers to the government
• Foreign exchange manager
• OMO (Open Market Operation)

RBI Policy:

Financial Inclusion, KYC-Norms, Micro-Finance, Banking Oman cements, NPA, CAR, BASEL-Norms, Bank Assurance, Negotiable Instrument Act., Bank Customer Relationship etc.

There are five regularizes bodies in India: Reserve Bank of India

1. FMC – Forward Market Commission – Commodity Market
2. SEBI – Securities and Exchange Board of India – Capital market regulator
3. IRDA – Insurance Regulatory and Development Authority – Insurance Regulator
4. PFRDA – Pension Fund Regulatory and Development Authority – Pension Regulator
5. Money Market Regulator

There are four Printing Press(notes) in the country: RBI

• Nasik (Maharashtra) – Currency note press, India Security Press
• Devas (Madhya Pradesh) – Banknote press
• Mysore (Karnataka) – Currency note press
• Salboni (West Bengal) – Currency note press

1. Security Paper Mill: Hoshangabad (Madhya Pradesh)
2. Security Printing Press: Hyderabad (Andhra Pradesh)

Local Board of RBI:

• Northern Zone: Delhi
• Southern Zone: Chennai
• Eastern Zone: West Bengal (Kolkata)
• Western Zone: Mumbai
• Total Regional Office: 19
• Total Sub Regional Office: 09

Note:

• RBI held 6 meeting in a year. There should be held 1 meeting in 3 months to review of monetary policy.
• Rs 2 to 10000 notes are issued by RBI and Rs. 1-rupee note is issued by Finance Minister
• The denomination of note is written in 15 languages.

In a nutshell, the Reserve Bank of India has a rich and dynamic history, shaping the nation’s economy and financial system. From its inception in 1935 to its significant role in today’s digital age, the RBI continues to be a pillar of strength, fostering economic stability and progress. Its journey reflects the evolution of India’s financial sector, and its legacy continues to influence the nation’s economic future.

The RBI is a banker of the government’s banks and bankers. RBI is the central bank of India and the supervisory body of the banking sector.

RBI does not deal with direct banking and public except exchanging currency notes.

Apart from the RBI, you can open a new savings bank account with any public sector bank, private sector bank, corporation bank etc.

Now, it has been decided to open savings bank accounts in the name of the State Government departments / bodies / agencies in connection with the grant / subsidy for the implementation of various programs / schemes sponsored by the State Governments. The bank certifies that related government departments or bodies are allowed to open Savings Bank Account. Banks should keep a copy of the authority issued by their state government departments.

Subject to the production of authorization to open savings bank accounts from concerned bank / state government departments in relation to government departments / bodies / agencies regarding grant / subsidy for the implementation of various programs / schemes sponsored by the Central Government / State Governments.

However the certain bodies/organisations that can open an account with RBI are:

1. State Government
2. The State Government departments
3. State Government to allow related government departments or bodies in connection with the grant / subsidy for the implementation of various programs / schemes sponsored by the State Governments on behalf of government departments related to concerned government departments Government body / agency bank account.
4. Subject to the production of authorization to open savings bank accounts from concerned bank / state government departments in relation to government departments / bodies / agencies regarding grant / subsidy for the implementation of various programs / schemes sponsored by the Central Government / State Governments.

To Open Account in RBI bank : Click here

Reserve Bank of India (RBI)

Deputy governor of the Reserve Bank of India