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Reserve Bank of India

About Reserve Bank of India

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What is Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) is the central bank of India whose primary function is to manage and govern the financial system of the country. It is a statutory body established in the year 1935 under the Reserve Bank of India Act, 1934. The central bank regulates the issue and supply of the Indian rupee. It also looks after the central government’s money. The central bank plays the role of the bankers’ bank and regulates the banking sector. It also plays an important role in India’s development story by supporting the government in its developmental projects and policies.
 
The head office of the RBI, in Kolkata when the bank was established, was shifted to Mumbai in 1937. Originally, the bank was privately owned. However, after Independence, it was nationalised in 1949 and is now fully owned by the Government of India.
What are the major functions of the RBI?
 
The preamble of the RBI says... "to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth."
 
Some of the basic functions of the RBI are:
 
1. Issuer of notes: The RBI is the only institution which has the control over printing of currency notes (except the one rupee note, which is printed by the finance ministry).
 
2. Banker to the government: The RBI performs banking functions for the state and central governments. It advises the government on monetary policy issues and also manages the government’s public debt.
 
3. Banker’s bank: The central bank is also known as the banker’s bank because it performs functions similar to what commercial banks do for their customers.
 
4. Credit regulation: The RBI regulates the flow of money in the country’s financial system. It controls inflation in the economy and takes necessary policy decisions from time to time to address systemic concerns.
 
5. Foreign reserves: The central bank buys and sells foreign currencies to keep the foreign exchange rates stable. It takes necessary steps as and when required.
 
6. Role in development of the country: The RBI performs various functions and takes necessary decisions to support developmental agenda of the government.
 
The RBI board
 
The board of the RBI consists of a Governor, not more than four Deputy Governors and other members who are appointed by the central government. Currently, Shaktikanta Das is the Governor of the Reserve Bank of India. There are three Deputy Governors — B P Kanungo, Mahesh Kumar Jain, and M D Patra.
 

Latest Updates on Reserve Bank of India

December marked the second policy review meeting for the external members, who have a fixed four-year term

Updated On: 21 Dec 2024 | 12:08 AM IST

Most central banks (CB) are narrowly focused on monetary policy. The RBI has a sprawling mandate. The trouble is these roles contain many inherent conflicts

Updated On: 19 Dec 2024 | 10:13 PM IST

The Banning of Unregulated Lending Activities Bill calls for the CBI to handle probes in cases spanning multiple states or UTs

Updated On: 19 Dec 2024 | 11:32 PM IST

Market borrowing surged 32.8% in FY24, RBI report says

Updated On: 19 Dec 2024 | 11:23 PM IST

In the last two trading sessions, the Reserve Bank of India (RBI) conducted buy-sell swaps of an estimated size of $3 billion-4 billion

Updated On: 19 Dec 2024 | 2:40 PM IST

Decentralising local governance is crucial to empowering municipal bodies with greater administrative autonomy and financial independence

Updated On: 18 Dec 2024 | 10:48 PM IST

The Reserve Bank of India has recently let some short dollar positions in the overseas market expire without rolling into new contracts

Updated On: 18 Dec 2024 | 1:58 PM IST

The initial uptick in Edelweiss Financial Services share came after the RBI, with immediate effect, lifted the restrictions imposed on ECL Finance, and Edelweiss ARC

Updated On: 18 Dec 2024 | 10:52 AM IST

The local currency settled at Rs 84.90 per dollar as the Reserve Bank of India (RBI) intervened in the foreign exchange market via dollar sales

Updated On: 17 Dec 2024 | 7:28 PM IST

In our earlier piece in these pages, we highlighted the unwelcome consequences of the exchange rate policy adopted under the outgoing Reserve Bank of India (RBI) regime

Updated On: 17 Dec 2024 | 12:33 AM IST

Malhotra to follow an open door policy and remain accessible to everyone at RBI

Updated On: 16 Dec 2024 | 10:23 PM IST

The career bureaucrat appointed to lead the central bank "reassured" staffers that the RBI, an "august institution", is his "family" now

Updated On: 16 Dec 2024 | 9:58 PM IST

RBI tightened its guidelines for P2P lending in Aug, flagging regulatory violations by some platforms

Updated On: 16 Dec 2024 | 11:16 PM IST

R Subramaniakumar was initially appointed for a period of three years as MD and CEO of the bank in June 2022

Updated On: 16 Dec 2024 | 6:30 PM IST

India's forex reserves are at a five-month low after the RBI sold $38 billion, per IDFC FIRST Bank's estimate, between October and the first week of December

Updated On: 16 Dec 2024 | 9:05 AM IST

Banks have been instructed to implement the guidelines swiftly and ensure widespread awareness about the new loan provisions

Updated On: 14 Dec 2024 | 1:14 PM IST

The RBI is expected to have sold net dollars worth $61.1 billion to protect the domestic currency

Updated On: 13 Dec 2024 | 10:47 PM IST

Data shows outstanding deposits in the fortnight ending November 29 stood at Rs 220.17 trillion, while outstanding credit stood at Rs 175.09 trillion

Updated On: 12 Dec 2024 | 8:26 PM IST

The implied yield on near-maturity forwards is now higher than on longer-term forwards for the first time this year

Updated On: 12 Dec 2024 | 2:47 PM IST

Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore

Updated On: 12 Dec 2024 | 11:55 AM IST