2. INTRODUCTION
It is the Central Bank of
India Established on 1st
April 1935 under the
Reserve Bank of India
Act.
Its head quarter is in
Mumbai (Maharashtra).
Its present governor is Dr.
Raghuram Rajan.
It has 19 Regional offices
most of them in State
capitals and 9 sub-offices.
3. BRIEF HISTORY
It was set up under the recommendations of the
Hilton Young commission.
It was started as share-holders bank with paid up
capital of INR 5 crores.
Initially it was located in Kolkata.
It moved to Mumbai in 1937
Initially it was privately owned.
It got nationalized in 1949.
4. PREAMBLE
The preamble of the Reserve Bank of India describes
the basic functions of the Reserve Bank as :“To regulate the issue of Bank notes and keeping
the reserves with a view to securing monetary
stability in India and generally to operate the
currency and credit system of the country to it
advantage”
5. STRUCTURE OF RBI
The organization of RBI can be divided into three parts:Central Board of Directors :
The organization and management of RBI is vested
on the Central board of Directors. It is responsible
for the management of RBI. Central board of RBI
consist of 20 members. It is constituted as follow
a) One Governor
b) Four Deputy Governors
c) Fifteen Directors
1.
6. Local Boards:
Local boards are for four regional areas of the country with
their head-quarters at Mumbai, Kolkata, Chennai and
New Delhi. It consist of five member each , appointed by
central government for a term of 4 years.
3. Offices of RBI:
The Head office of the RBI is in Mumbai and offices of Local
boards are situated in Mumbai, Kolkata, Chennai and
New Delhi. RBI has opened local offices or branches in
different parts of India. In places where RBI cannot open
the offices the State Bank of India and its associate banks
represents as the agent of RBI.
2.
7. FUNCTIONS OF RBI
Issue of currency
Development role
Banker to government
Banker to bank
Role of RBI in inflation control
8. Formulate monetary policy
Manager of foreign currency
Clearing house functions
Regulation of banking system
9. CONCLUSION
The RBI has done a commendable job as a monetary
authority and regulator of the financial system. It has
adopted the best international practices in the
dissemination of information and rational of policies.
The bank intervened in markets where necessary and
allowed the market participation to build skills and
gain maturity to accept the new system.
