What is RBI?
The Reserve Bank of India, abbreviated as RBI, is the central bank of India. In addition, it is a regulatory body in charge of overseeing the Indian Banking System. Moreover, it is owned by the Ministry of Finance, Government of India. The functions of RBI include controlling, issuing, and maintaining the supply of the Indian rupee. Also, the Reserve Bank of India functions to manages the country’s financial system and tends to work to promote economic development.
Reserve Bank of India (RBI) – Timeline
The RBI plays a significant role in the Indian Government’s Development Strategy. These are some important dates and events relating to RBI functioning :
|1934||The British passed the Reserve Bank of India Act|
|1935||RBI was established on 1st of April in Calcutta|
|1937||RBI was permanently moved to Mumbai|
|1949||Got nationalized after independence. Prior to this, the bank was owned by private investors.|
The original RBI Act of 1934 was amended in 2016, providing the statutory foundation for the implementation of the versatile inflation-targeting guideline.
Structure of Reserve Bank of India
The Reserve Bank’s operations are governed by the Central Board of Directors. Moreover, the RBI’s governance structure is led by the Central Board of Directors. Moreover, there are four Local Boards that look after local interests in the country’s Northern, Southern, Eastern, and Western regions. In accordance with the Reserve Bank of India (RBI) Act, the central government appoints/nominates directors to the Central Board and members to the Local Boards. In addition, the Central Board’s composition is specified under Section 8(1) of the RBI Act, 1934.
The Central Board comprises of:
- The Governor
- 4 Deputy Governors of the Reserve Bank
- 4 Directors nominated by the central government, one from each of the four Local Boards as constituted under Section 9 of the Act
- 10 Directors nominated by the central government
- 2 government officials nominated by the central government
Three committees which assist the Central Board:
- The Committee of the Central Board (CCB)
- The Board for Financial Supervision (BFS)
- The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)
Current Governor of RBI
The current governor of RBI is Shaktikanta Das. Also, Das is a retired 1980 batch Indian Administrative Service (IAS) officer of Tamil Nadu cadre. The RBI has four deputy governors in addition to the Governor, namely:
- T.Ravi Shankar,
- M.K. Jain,
- Dr. M. D. Patra,
- M. Rajeshwar Rao
In conclusion, the Reserve Bank of India (RBI) is a National Institution and a pillar of the thriving Indian Economy. Moreover, it is a member of the International Monetary Fund (IMF). Above all, RBI regulates India’s credit and currency system. Also, the RBI’s primary goals are to maintain public trust in the banking system, protect depositors’ interests. In addition, provide people with cost-effective banking services such as cooperative banking and commercial banking.
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