About Reserve Bank of India (RBI)
- The Reserve Bank of India (RBI) was established on April 1, 1935 in accordance with the provisions of the reserve bank of India Act, 1934. RBI was established with 5 crore as its capital as private shareholders bank. RBI was nationalised 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 on RBI in Delhi, Mumbai, Kolkata anad Chennai.
- The general superintendence and direction of the RBI is entrusted with the 20 member strong Central Board of Directors – including the Governor (currently D. Subbarao), four Deputy Governor (currently Subir Gokaran, Anand Sinha, Haroon Rashid Khan and K.C. Chakravarthi).
- RBI is the Central Bank and supreme monetary authority of India.
- Financial year of RBI is from July 1 to June 30.
Functions of RBI:
- RBI acts as a Central Bank of India.
- RBI acts as banker to the Central and State Governments.
- RBI announces the Annal Policy Statement (earlier known as monetary and credit policy) to take care of monetary credit and other policy aspects of the economy. It announces the policy in April (slack season) and reviews it on October (busy season).
- It acts as an advisor to the government.
- It acts as bankers bank and supervisor.
- It acts as an controller of money supply and credit.
- It manages the foreign exchanges.
- It collects and publishes all monetary and banking data.
- It promotes commercial banking, rural (agriculture) credit, industrial finance and export finance, etc.
- It issues currency.
- It acts as central clearing house for inter bank transactions.