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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

A rate cut will not be possible for the next 13-14 months due to the inflation outlook, said Mishra, who is also a part-time member of the PM's Economic Advisory Council

Updated On: 11 Dec 2024 | 9:41 PM IST

According to CRIF Highmark report, highest delinquency was in credit cards with limits less than Rs 50,000

Updated On: 11 Dec 2024 | 11:45 PM IST

'We cannot be stuck. We have to be agile while maintaining policy continuity,' Sanjay Malhotra said in his first address as RBI governor

Updated On: 11 Dec 2024 | 4:26 PM IST

Prasanna expects a shallow monetary easing cycle of 50 basis points, with a 25-basis-point reduction in February, and a similar one in April or June

Updated On: 11 Dec 2024 | 3:31 PM IST

Malhotra's appointment marks him as the first RBI governor since Duvvuri Subbarao to transition directly from the Finance Ministry

Updated On: 11 Dec 2024 | 12:49 PM IST

India has a demographic advantage and substantial growth and a political system that is relatively calm and consistent, Stephen Dainton, President of Barclays Bank PLC said

Updated On: 11 Dec 2024 | 11:13 PM IST

The one-month non-deliverable forward indicated that the rupee may open near 84.88

Updated On: 11 Dec 2024 | 9:14 AM IST

The balances in the RVAs are built through inward remittances in freely convertible currencies

Updated On: 11 Dec 2024 | 1:14 AM IST

Economists can still look forward to filling the deputy governor's position

Updated On: 10 Dec 2024 | 10:54 PM IST

Malhotra, 56, will take over as governor today at a time when there is growing clamour for an interest rate cut to support slowing economic growth

Updated On: 10 Dec 2024 | 11:08 PM IST

For 2025-26 and 2026-27, S&P Global Ratings pegged India's GDP growth forecast at 6.7 per cent and 6.8 per cent, respectively, down 20 basis points from its previous estimates

Updated On: 10 Dec 2024 | 11:51 PM IST

The RBI grants conditional approval for the Burman family's 26% stake offer in Religare, with restrictions on board changes. Sebi approval is still pending amid valuation disputes

Updated On: 10 Dec 2024 | 2:55 PM IST

In its India outlook for 2025, S&P also retained India's growth forecast for current fiscal at 6.8 per cent, followed by 6.9 per cent growth in 2025-26

Updated On: 10 Dec 2024 | 2:27 PM IST

Outgoing RBI Governor Shaktikanta Das hoped that there would be a nationwide roll-out of Unified Lending Interface

Updated On: 10 Dec 2024 | 11:50 PM IST

Malhotra, 56, who is currently the Revenue Secretary in the Ministry of Finance, was on Monday evening named by the government to succeed Shaktikanta Das as the governor of the central bank

Updated On: 10 Dec 2024 | 1:51 PM IST

Outgoing RBI Governor Shaktikanta Das reflects on six years at the helm as Sanjay Malhotra prepares to take over

Updated On: 10 Dec 2024 | 1:31 PM IST

With a new governor at the helm of the Reserve Bank of India (RBI) and a deputy governor retiring next month, the RBI's monetary policy committee (MPC) will have a new look

Updated On: 10 Dec 2024 | 12:50 PM IST

KV Kamath commends outgoing RBI Governor Shaktikanta Das for his leadership and expresses confidence in Sanjay Malhotra's capabilities as the new RBI Governor

Updated On: 10 Dec 2024 | 12:48 PM IST

98.08% of Rs 2,000 notes have been returned, but the remaining ones are still legal tender. Here's how to manage them before the window closes

Updated On: 10 Dec 2024 | 11:12 AM IST

The rupee hit a low of 84.80 in early trading, surpassing its previous all-time low of 84.7575 hit last week

Updated On: 10 Dec 2024 | 10:33 AM IST