Question

explain about Reserve Bank of India

Answer 1

The shape of the Reserve Bank of India (RBI) which was set up in 1935 during British rule, was influenced by two different attitudes, though with agreement that it should be independent of government. The British rulers were swayed by the prevailing monetary orthodoxy, of keeping the functions of raising and using money separate from that of creating money, while the nationalists wanted independence for the RBI in order to insulate it from the interference of the alien power. Despite this general agreement, the act establishing the RBI was so drafted that it left several gray areas for interpretation of the RBI-government relationship. As a result, the executive started, from the beginning, to encroach on the autonomy of the RBI, as evidenced by the finance member of the government of India selecting the composition of the RBI Board, and also by a virtual dismissal of its first governor, Sir Osborne Smith, on the ostensible grounds of disagreement on the issue of fixing the bank rate. During World War II, the authority of the RBI was further clipped in regard to its monetary policy, when it was forced to pursue a government-initiated low interest rate policy to keep the cost of financing the war low and to expand money supply through accumulation of sterling (foreign exchange) balances.

Answer 2

reserve bank of India is the bankers bank that's RBI monitoring and controlling The Banks,RBI control money flow in country
control and regulating FDI investment in banking sector , RBI can approve new bank accounting to RBI laws,
RBI have one chairman and four dupty chairman
RBI take RTGC transaction that means monitoring Rs 1,00,000above transaction