Fast Facts on Reserve Bank of India

RBI
First Governor of Reserve Bank of India (RBI) – Osborne Smith

 First Deputy Governor of Reserve Bank of India (RBI) – James B.Taylor

 Present Governor of RBI – Urjit Patel

 Present Deputy governor of RBI – R .Gandhi , S.S.Mundra , N.S.Vishwanathan

 Established – 1st April 1935 under RBI Act 1934

 RBI Established on the recommendations of - Hilton Young commission.

 Headquarter – It is located at Mumbai

Nationalisation of Reserve Bank of India (RBI) – In 1949 under banking Regulation Act 1949

Zonal offices of RBI Located at – 4 Places , Namely Chennai , Kolkata , Mumbai & Delhi

 Total number of Regional Offices – 19

 Total number of sub-offices – 9 , currently RBI has opened 2 more sub-offices at Aizwal & Imphal (Capital city of Manipur)

 Each of these local boards consists of 5 members who represent regional interests, and the interests of co-operative and indigenous banks
Total number of Regional Offices in India – 22 mostly in states capital
Central office was initially located at – Calcutta
 Currently, Central office is located at – Mumbai , It was permanently moved in 1937

Composition of Reserve Bank of India

  •  It has 2 Member from Ministry of Finance
  • It has 5 Local Representative in Regional Offices
  •  It has 10 Board of Directors

Function of RBI 


#1.Monetary Authority –

  •  Formulates , Implements & monitors the credit policy
  •  It provides market stability
  •  It ensures flow of credit to the productive sectors

#2. Supervisory Function –

  •  To protect depositors interests
  •  Provide effective customer services
  •  Maintain public confidence

#3. Issue of Currency Notes –

  • RBI has the sole authority to issue currency notes in India
  • They also have the power to destroy old notes
  •  Last time RBI launched new notes known as MG-2005 series

#4. Banker’s to other Banks or Banker’s Bank –

  •  RBI lends money to other banks in time of need
  • The other banks can borrow the money from each other or from the market, if they failed everywhere then the last option is to borrow from RBI . 
  • For this specific reason, RBI is known as “Lenders of the Last Resorts”'

#5. Bankers to Government –

  • RBI act as a banker to the Government of India & also to the governments of the constituent units of India’s federal system .
  •  The bank has the responsibility to transact the all the banking business of the Government of India on behalf of Government , like :
A. Bank accepts money on account of the government
B. Bank makes payment on behalf of the government , etc.

#6. Custodian of Foreign Reserves –

  • RBI has the power of custodian regarding foreign exchange
  • RBI maintain the record of all transactions done in foreign exchange , also keep an eye on CAD (Current Account Deficit)

#7. Promotional function --

  •  RBI performs various promotional functions. 
  • They actively participate in Government various initiative like financial Inclusion , Surgical strike on Black money , etc.

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