6/9/2015

BankersAdda:RBItheBOSSofallBanks

RBI is the central Bank of India and controls the entire money issue, circulation the entire money issue,
circulation and control by its monetary policies and lending policies by periodical updates or corrections to
disciplinetheeconomy.
The central bank of India, founded in 1935, which maintains the monetary policy of its national currency, the
rupee,andthenation'scurrencyreserves.
ItisalsoknownastheBankoflastresort/Bankersbank/Governmentsbank.
Establishment:
The reserve bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve
BankofIndiaAct,1934.TheCentralOfficeoftheReserveBankofIndiawasinitiallyestablishedinCalcuttabut
waspermanentlymovedtoMumbaiin1937.Thoughoriginallyprivatelyowned,sincenationalizationin1949,the
ReserveBankisfullyownedbytheGovernmentofIndia.
MAINFUNCTIONSOFRBI:
1)MonetaryAuthority:Formulatesimplementsandmonitorsthemonetarypolicy.
2) Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations
withinwhichthecountrysbankingandfinancialsystemfunctions.
3)ManagerofForeignExchange:ManagestheForeignExchangeManagementAct,1999.
4)IssuerofCurrency:Issuesandexchangesordestroyscurrencyandcoinsnotfitforcirculations.
5)Developmentrole:Performsawiderangeofpromotionalfunctionstosupportnationalobjectives.
6)BankerstotheGovernment:performsmerchantbankingfunctionforthecentralandthestategovernments
alsoactsastheirbanker.
7)Bankerstobanks:maintainsbankingaccountsofallscheduledbanks.
CentralBoardofRBI:
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the
GovernmentofIndiainkeepingwiththeReserveBankofIndiaAct.Theyareappointed/nominatedforaperiodof
fouryears
OfficialDirectors:
Fulltime:GovernorandnotmorethanfourDeputyGovernors
Currently:
Dr.RaghuramRajan(Governor)
ShriH.R.Khan(DeputyGovernor)
Dr.UrjitR.Patel(DeputyGovernor)
ShriR.Gandhi(DeputyGovernor)
ShriS.S.Mundra(DeputyGovernor)
SubsidiariesofRBI:
Fully owned: Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharatiya Reserve Bank
NoteMudranPrivateLimited(BRBNMPL)

OtherImportantfactsrelatedtoRBI:
ReserveBankofIndiaActpassedin1934.
ReserveBankofIndia(RBI)establishedon1April1935.
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6/9/2015

BankersAdda:RBItheBOSSofallBanks

ReserveBankofIndia(RBI)establishedontherecommendationofHiltonYoungCommission.
RBIisthesoleauthorityinIndiatoissueBanknotesinIndia.
EmblemofRBI:PantherandPalmTree.
ChintamanDwarkanathDeshmukh(CDDeshmukh)wasthegovernorofRBIattheTimeof
nationalizationofRBIin1949.
1stwomenDeputyGovernorofRBIK.J.Udeshi.
RBIisnotexpectedtoperformthefunctionofacceptingdepositsfromthegeneralpublic
ThefirstGovernoroftheReserveBankofIndiafrom01.04.1935to30.06.1937wasSirOsborne
Smith
RBIdecidesthefollowingratesnamelyBankrate,reporate,reversereporateandcashreserve
ratio.

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