- The Reserve Bank of India (RBI) was established on April 1, 1935, in accordance with provisions of the Reserve Bank of India Act, 1934. RBI was established with 5 crores as its capital as a private shareholders bank. RBI was nationalized on January 1, 1949.
- The central office of the Reserve Bank of India was initially established in Kolkata but was permanently moved to Mumbai in 1937. There are four local boards of RBI in Delhi, Mumbai, Kolkata and Chennai.
- The general superintendence and direction of the RBI are entrusted with the 20-member-strong Central Board of Directors - including the Governor, four Deputy Governors.
- Reserve Bank of India (RBI) is the Central Bank and supreme monetary authority of India.
- The financial year of RBI is from July 1 to June 30.
Functions of RBI:
- RBI acts as the central bank of India.
- RBI acts as a banker to the Central and State Governments.
- RBI announces the Annual Policy Statement (earlier known as monetary and credit policy) to take care of monetary credit policy and other policy aspects of the economy. It announces the policy in April (slack season) and reviews it in October (busy season).
- It acts as an advisor to the government.
- It acts as a banker's bank and supervisor.
- RBI acts as the controller of money supply and credit.
- It manages the foreign exchanges.
- RBI collects and publishes all monetary and banking data.
- RBI promotes commercial banking, rural (agriculture) credit, industrial finance and export finance, etc.
- RBI issues currency.
- RBI acts as a central clearing house for inter-bank transactions.
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