Question

Write a short note on Reserve Bank of India?

Answer 1

The Reserve Bank of India (RBI) (IAST:Bhāratīya Rija़rva Baiṃka) is India's central banking institution, which controls themonetary policy of the Indian rupee. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.[6] The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders.[7] Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

Answer 2

Reserve Bank of India:

Reserve Bank of India, started in 1934 as shareholder's bank has Mumbai, India as its headquarters. After independence in 1947 it got nationalized on $1^{st}$ January, 1949 and in March 1949, the Banking Company Act gave more powers to regulate and control the commercial banks.

It has a Central Board of directors with 20 members. The RBI head is the Governor, assisted by four Deputy Governors who are appointed by the Indian government for 5 year period.

The two major departments are as follows,

• Issue department that is responsible for the issue of currency and bank loans.
• Banking department that is responsible for planning, reorganization and administration.