The Reserve Bank of India
Reserve
Bank of India is India’s central banking institution, which controls the
issuance and supply of the Indian rupees. Until the Monetary approach board of
trustees were set up in 2016, It additionally controlled money related strategy
in India.
Hold
Bank of India will be India's focal financial foundation. Central banks are a
relatively recent innovation and most central banks, as we know it today, were
established in the early twentieth century.
The
Reserve Bank of India was set up on the suggestion of the Hilton Young
Commission. The Reserve Bank of India Act 1934(II of 1943) provides the statutory basis for the functioning of the Bank which commenced on 1st
April 1935.
The bank is formed
So far,
the bank has begun its operations by taking control of the government's accountability
and public debt management from the currency regulator and the Imperial Bank of
India. The existing currency offices in Kolkata, Bombay, Madras, Rangoon,
Karachi, Lahore, and Kaunpur (Kanpur) became branches of the issue department.
Banking department offices were established in Kolkata, Bombay, Madras, Delhi
and Rangoon.
Although
Burma (Myanmar) departed the Indian Union in 1937, the Reserve Bank occupied
Japan for Burma and subsequently served as the central bank of Burma until
April 1947. After the partition of India, the Reserve Bank of India started the
activities of the Central Bank of Pakistan until June 1948; the State Bank of
Pakistan started operations. The bank, originally established as a
shareholders' bank, was nationalized in 1949.
The interesting feature of the Reserve Bank of India was that from its very
beginning the bank has been seen to play a special role in development,
especially in the context of agriculture. When India began its planning
efforts, the role of bank development came into focus, especially in the sixties, when the Reserve Bank pioneered the idea and practice of using money
to catalyze development in various ways. The bank also played an instrumental
role in institutional development and helped to set up the financial infrastructure
such as the Deposit Insurance and Credit Guarantee Corporation of India, Unit
Trust of India, Industrial Development Bank, National Agriculture, and Rural
Development Bank, discount and money.
With the
liberalization, the focus of the bank has shifted back to key central banking
functions such as monetary policy, bank oversight, and control, and monitoring
of the payment system and the development of the financial market.
Monetary policy of India
The
Central Bank was an independent leading financial authority that controls the
banks and provides important financial services such as foreign currency
reserve, inflation control, monetary policy reporting until August 20, 2016. The
functions of a central bank can vary from country to country and maybe
autonomous or corporate and perform important financial functions in the
country through another agency. A central bank is an important financially
leading company in an economy and the central issues of the central banks may
differ from country to country. They carry out operations and operations with
the goal of maintaining economic stability and growth of the economy.
Money
related approach is the procedure by which a nation's monetary expert, usually the central bank, controls the financing of
the economy through control over interest rates to maintain price stability and
achieve higher economic growth. The central currency authority in India is the
Reserve Bank of India (RBI). It is designed to maintain price stability in the
economy.
Other
goals of Indian monetary policy,
Price
stability
Price
stability promotes economic development with considerable emphasis on
sustainability.
Regulated
expansion of bank credit
An important function of the RBI is to regulate the expansion of bank credit and
finance, with particular attention to the seasonal need for credit without
affecting output.
Promotion
of fixed investment
The
objective here is to increase the productivity of the investment by controlling
the essential fixed investment.
Innovations
and restrictions of stocks
Often
the unit's sickness is caused by excess stock and commodities becoming
outdated. To avoid this problem, the central financial authority does this
necessary work to restrict searches. The main purpose of this policy is to
avoid excessive reserves and idle money in the organization.
To promote efficiency
The RBIAct, 1934 (RBI Act) 2016 was amended by the Finance Act to provide a statutory
and institutional framework of the Monetary Policy Committee to maintain price
stability in line with the growth objective. The Monetary Policy Committee is
tasked with determining the repo rate required to prevent inflation within
certain target levels. According to the provisions of the RBI Act, three of the
six members of the Currency Policy Committee will be appointed by the RBI and
the other three by the central government.
Who owns RBI
According
to the Reserve Bank of India Act of 1934, the Reserve Bank of India was
established. Although initially privately owned, it was nationalized in 1949
and has since been fully owned by the Government of India. (Gol)
Reserve Bank of India Website
Headquarters Mumbai, Maharashtra, India
Established 1 April 1935, (84 years ago)
Central
Bank India
Currency Indian rupees
Reserves Rs-2837400 Crore
Bank
Rate 5.65%
Interest
on 4.00%
Website rbi.org.in
Who is the first governor of RBI
The
principal legislative leader of the Reserve Bank of India was Osborne Smith, a
British investor. A specialist merchant, he served for more than 20 years with
the New South Wales Bank and 10 years with the Commonwealth Bank of Australia
before coming to India in 1926 as Managing Governor of the Imperial Bank of
India. Deshmukh was the primary Indian Governor of the Reserve Bank of India.
Currently, the Governor of the Reserve Bank of India is Shashikant Das, who
took office on 12 December 2018.
Governors Name of Reserve bank of India
The Governor of the
RBI is the Chief Executive Officer of the Central Bank of India and former
Chairman of its Central Board of Directors. The currency notes of the Indian
Rupee issued by the Reserve Bank of India (RBI) contains the Governor's
signature. Since the establishment of the British colonial government in 1933,
there have been twenty-five governors led by the RBI. The term of office
usually lasts for three years and in some cases, it can be extended for 2 years
The debut official
was Osborne Smith, a British investor, while CD Deshmukh was the principal
Indian senator. Having held office for more than seven years, Benghala Rama Rao
is the longest-serving governor, and Amitabh Ghosh's 20-day term is the
shortest. Manmohan Singh, the fifteenth governor of the bank, later became the
thirteenth prime minister of India. Shaktikanta Das is the 25th Governor of the
Reserve Bank of India from December 12, 2018.
Governors Name (1935 to 2019):-
Osborne Smith
(1935-1937), Jame Braid Taylor(1937-1943), C.D. Deshmukh(1943-1949), Benegal
Rama Rau(1949-1957), K.G. Ambegaonkar(1957-1957), H.V.R. Iyenger(1957-1962),
P.C. Bhattacharya(1962-1967), Lakshmi Kant Jha(1967-1970), B.N
Adarkar(1970-1970), Sarukkai Jagannathan(1970-1975), N.C. Sen Gupta(1975-1975),
K.R. Puri(1975-1977), M. Narasimham(1977-1977), I.G. Patel(1977-1982), Manmohan
Singh(1982-1985), Amitav Ghosh(1985-1985), R.N. Malhotra(1985-1990), S.
Venkitaramanan(1990-1992), Bimal Jalan(1997-2003), Y. Venugopal
Reddy(2003-2008), D. Subbarao(2008-2013), Raghuram Rajan(2013-2016), Urjit
Patel(2016-2018), Shaktikanta Das(2018-
Name of Natonalised bank under RBI
State Bank of
India, Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of Maharashtra, Canara
Bank, Bank of India, Central bank of India, Corporation Bank, Dena Bank, Indian
Bank Building, Indian Overseas Bank, Oriantal Bank of Commerce, Panjab National
Bank, Syndicate Bank, Union Bank of India, UCO Bank, Vijaya Bank.
Name of Private Indian bank under RBI
Axis Bank Limited,
Bandan Bank Limited, Catholic Syrian Bank Limited, City Union Bank Limited, DCB
Bank Limited, Dhanlaxmi Bank Limited, Federal Bank Limited, HDFC Bank Limited,
ICICI Bank limited, Induslnd Bank Limited, HDFC Bank Limited, Jammu &
Kashmir Bank Limited, Karnataka Bank Limited, Karur Vysya bank Limited, Kotak
Mahindra Bank Limited, Lakshmi Vilas Bank Limited, Nainital Bank Limited, RBL
bank Limited, South Indian Bank Limited, Tamilnad Mercantile bank Limited, Bank Limited, Lakshmi Vilas Bank Limited,
Nainital Bank Limited, RBL bank Limited, South Indian Bank Limited, Tamilnad
Mercantile bank Limited, YES Bank Limited, IDBI Bank Limited, Coastal Local
area bank Limited, Krishna Bhima Samruddi Local Area Bank Limited, Subhadra
Local Area Bank Limited, Capital Small Finace bank Limited, North East Small
Finance bank Limited,
Name of Rural bank under RBI
Andhra pradesh
grameen Vikas Bank, Andhra pragathi grameena Bank, chaitanya Godavari grameene
bank, Saptagiri grameena Bank, Telangana Grameena Bank, Assam gramin Vikash
Bank, Langpi Dehangi Rural Bank, Arunachal Pradesh Rural Bank, Uttar Bihar
Gramin Bank, Madhya Bihar Gramin bank, Bihar Gramin Bank, Chhattisgarh Rajya
Gramin Bank, Dena Gujarat Gramin bank, Baroda Gujarat gramin Bank, Saurashtra
Gramin Bank, Sarva Haryana Gramin Bank, Himachal Pradesh Gramin Bank, Jharkhand
Gramin Bank, Vananchal Gramin Bank, Jammu & Kashmir Gramin Bank, Ellaquai
Dehati Bank, Maharashtra Gramin Bank, Kaveri Grameena Bank, Karnataka Vikas
Grameena Bank, Pragathi Krishna gramin Bank, Kerala gramin Bank, Vidharbha
Konkan Gramin bank, Narmada jhabua Gramin Bank, Central Madhya Pradesh Gramin
Bank, Madhyanchal Gramin Bank, Manipur Rural Bank, Meghalaya Rural Bank,
Mizoram Rural bank, Nagaland Rural Bank, Odisha Gramya bank, Utkal Grameen
bank, Panjab Gramin Bank, Malwa gramin bank, Sutlej Gramin Bank, Puduvai
Bharathiar Grama Bank, Rajasthan Marudhara gramin Bank, Baroda Rajasthan
Ksethriya Gramin Bank, Pandyan Grama Bank, Pallavan Grama Bank, tripura Gramin
Bank, Allahabad UP Gramin Bank, Uttarbanga Kshetriya Gramin Bank, Gramin bank
Of Ariyavrat, Baroda UP Gramin Bank, Sarva UP Gramin Bank, Prathama bank,
Purvanchal Bank, Uttarakhand Gramin Bank, Bangiya Gramin Vikash Bank, Paschim
Banga Gramin Bank.
The Functions of RBI
The central bank of
any country performs many functions such as monitoring monetary policy, issuing
currency, managing foreign currencies, acting as a bank for the government and
the banker of the scheduled commercial bank. It also works for the overall
economic growth of the country. Describes its key functions presented by the
Reserve Bank of India:
.. To control the
issue and reserve of banknotes in order to maintain financial stability in
India and generally to manage the country's currency and credit system.
The Reserve Bank of
India also acts as a central bank where commercial banks can hold account
holders and funds. RBI manages the banking accounts of all scheduled banks.
Commercial banks create credit. It is the duty of the RBI to control through
CRR, bank rate, and open market activities. As a banker to banks, RBI
facilitates the clearing of checks between commercial banks and facilitates the transfer of money to interbank. It can provide financial accommodation to
scheduled banks. It acts as a lender of last resort by providing banks with
emergency progression.
Structure of RBI
The focal governing
body is the fundamental board of trustees of the national bank. The Government
of India delegates the chiefs for a four-year term. The board consists of one
governor, and not more than four deputy governors; Four directors represent the
regional boards; two - usually the Economic Affairs Secretary and the Financial
Services Secretary - from the Ministry of Finance and ten other directors from
various fields. The Reserve Bank - under Raghuram Rajan's governorship - wanted
to create a post of chief operating officer (COO), in the rank of deputy
governor and wanted to re-allocate work between the five of them (four deputy
governor and COO).
The bank is going
by the senator, as of now Shaktikanta Das. There are four agent governors BP
Kanungo, N. S. Vishwanathan, and Mahesh Kumar Jain. As of now, there are 3
delegate governors. Viral Acharya left the post in July.
Two of the four
deputy governors are traditionally from the RBI ranks and are selected from the
bank's executive directors. One is nominated from among the chairpersons of the
public sector banks and the other is an economist. An Indian Administrative
Service officer can also be deputy as deputy governor's RBI and later as
governor's RBI with Y. Venugopal Reddy and Duvvuri Subbarao.
Different people
framing some portion of the focal top managerial staff of the RBI are Dr. Nachiket
Mor, Prof Damodar Acharya, Ajay Tyagi, Y. C. Deveshwar, and Anjuly Duggal.
Uma Shankar, chief
general manager (CGM) in charge of the Reserve Bank of India's financial
inclusion and development department has taken over as executive director (ED)
in the central bank.
Sudha Balakrishnan,
a past Vice President at National Securities Depository Limited accepted the
charge as the primary Chief Financial Officer (CFO) of the Reserve Bank on 15
May 2018; She was given the position of an Executive Director.
