RESERVE BANK OF INDIA

Overview

• The Reserve Bank of India is the central bank of India
  
• It was established in 1935 and nationalised in 1949. Its headquarters was initially Calcutta, but moved to Bombay in 1937. It is currently headquartered in Mumbai.
  
• The first Governor of the RBI was Sir Osborne Smith. The current Governor of the RBI is Dr. Duvvuri Subbarao
  
• The RBI functions under the provisions of the Reserve Bank of India Act 1934
  

Objectives

• Maintain price stability
• Ensure adequate flow of credit
• Protect depositor’s interests
• Provide cost-effective banking services to the public
• Facilitate external trade and payment
• Promote development of foreign exchange market in India
• Provide supplies of currency notes and coins in the country

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Functions

• Formulates, implements and monitors monetary policies
• Regulates operations of banking and financial services sector in the country
• Manages the Foreign Exchange Management Act 1999
• Issues, exchanges and destroys currency notes and coins
• Perform promotional functions to support national objectives
• Acts as banker to banks by maintaining accounts of all scheduled banks
• Acts as banker to the Central and state governments