RBIRESERVE BANK OF INDIA

PRESENTED BY :- ANANT GARG

INTRODUCTIONIt 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.

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 1937Initially it was privately owned.It got nationalized in 1949.

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”

STRUCTURE OF RBIThe organization of RBI can be divided into three

parts:-

1. 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 Governorb) Four Deputy Governorsc) Fifteen Directors

2. 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.

FUNCTIONS OF RBI Issue of currency

Development role

Banker to government

Banker to bank

Role of RBI in inflation control

Formulate monetary policy

Manager of foreign currency

Clearing house functions

Regulation of banking system

CONCLUSIONThe 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.

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