Reserve Bank of India (RBI)
February 21, 08 by FinanceTurfThe Reserve Bank of India is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
It has been headquartered in Mumbai. Though originally privately owned, RBI has been fully owned by the Government of India since nationalization in 1949.
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RBI is governed by a central board (headed by a Governor) appointed by the Central Government.
The current governor of RBI is Dr.Y.Venugopal Reddy. RBI has 22 regional offices across India.
Main objectives or functions that are performed by RBI are:-
a) Monetary Authority
Maintaining price stability and ensuring adequate flow of credit to productive sectors. Maintain optimum Liquidity in the economy.
b) Regulator and supervisor of the financial system
Maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public.
c) Manager of Exchange Control
To facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
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d) Issuer of currency
The main objective is to give the public adequate quantity of supplies of currency notes and coins and in good quality and even providing loan to commercial bank.
e) Developmental role
Performs a wide range of promotional functions to support national objectives.
f) Related Functions
Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.
