First Governor of Reserve Bank of India (RBI) – Osborne Smith
First Deputy Governor of Reserve Bank of India (RBI) – James B.Taylor
Present Governor of RBI – Shaktikanta Das
Present Deputy governor of RBI – Shri T Rabi Sankar
Established – 1st April 1935 under RBI Act 1934
RBI Established on the recommendations of - Hilton Young Commission.
Headquarter – It is located in Mumbai
Nationalization of Reserve Bank of India (RBI) – In 1949 under the Banking Regulation Act 1949
Zonal offices of RBI Located at – 4 Places, Namely Chennai, Kolkata, Mumbai & Delhi
Total number of Regional Offices – 19
Total number of sub-offices – 9, currently RBI has opened 2 more sub-offices at Aizwal & Imphal (Capital city of Manipur)
Each of these local boards consists of 5 members who represent regional interests, and the interests of co-operative and indigenous banks
Total number of Regional Offices in India – 22 mostly in the capital of the state
The central office was initially located at – Calcutta
Currently, the Central office is located in – Mumbai, It was permanently moved in 1937
The composition of the Reserve Bank of India
- It has 2 Member from the Ministry of Finance
- It has 5 Local Representative in Regional Offices
- It has 10 Board of Directors
Function of RBI
#1.Monetary Authority –
- Formulates, Implements & monitors the credit policy
- It provides market stability
- It ensures the flow of credit to the productive sectors
#2. Supervisory Function –
- To protect depositors interests
- Provide effective customer services
- Maintain public confidence
#3. The issue of Currency Notes –
- RBI has the sole authority to issue currency notes in India
- They also have the power to destroy old notes
- Last time RBI launched new notes known as MG-2005 series
#4. Banker’s to other Banks or Banker’s Bank –
- RBI lends money to other banks in a time of need
- The other banks can borrow the money from each other or from the market, if they failed everywhere then the last option is to borrow from RBI.
- For this specific reason, RBI is known as “Lenders of the Last Resorts”'
#5. Bankers to Government –
- RBI act as a banker to the Government of India & also to the governments of the constituent units of India’s federal system.
- The bank has the responsibility to transact all the banking business of the Government of India on behalf of the Government, like :
A. Bank accepts money on account of the government
B. Bank makes payments on behalf of the government, etc.
B. Bank makes payments on behalf of the government, etc.
#6. Custodian of Foreign Reserves –
- RBI has the power of custodian regarding foreign exchange
- RBI maintains the record of all transactions done in foreign exchange, also keep an eye on CAD (Current Account Deficit)
#7. Promotional function --
- RBI performs various promotional functions.
- They actively participate in Government various initiatives like financial Inclusion, Surgical strike on Black money, etc.
