RESERVE BANK OF INDIA: Hello friends, How are you all? Today I am welcomes you all in our website nai-khoj.com on a banking related topic. Yes guy’s the topic is Reserve Bank Of India (RBI). In our daily life we all have use of banks. At every moment of life we require money and money is directly related to bank. Bank is the sources of distribution of money in the entire country. So guys continue reading this site to know more about Reserve Bank Of India.
What Is The Meaning Of Reserve Bank Of India?
The Reserve Bank of India is central bank of India. Every country has its own central bank. RBI works as a regulatory body and it is also responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system in the country. It is responsible to manages the country’s main payment systems and also works to promote its economic development. Bharatiya Reserve Bank Note Mudran is one of the specialized divisions of RBI through which it mints Indian bank notes and coins. RBI has also established the National Payments Corporation of India to regulate the payment and settlement systems in India. Deposit Insurance and Credit Guarantee Corporation by RBI is for the purpose of providing insurance of deposits and guaranteeing of credit facilities to all Indian banks.
Headquarter – In Mumbai, India
Established– On 1 April 1935
Governor– Shaktikanta Das
Central bank of India Currency– Indian rupee ( ₹ )
Official Website– www.rbi.org.in
The Reserve Bank of India was established by following the Reserve Bank of India Act 1934. Initially it was worked as private but later on it was nationalized in 1949. Now it is fully owned by the Ministry of Finance , Government of India. The RBI was conceptualised or start their working as per the guidelines presented by Dr. Ambedkar to the Hilton Young Commission (also famous as Royal Commission on Indian Currency and Finance) based on his book. The Problem of the Rupee is Its Origin and Its Solution. At the time of establishment the authorized capital of the RBI was ₹5 crores. The government’s share in this was only ₹20-22 lakhs.
The RBI has four regional branches- North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. These representations are formed by five members who is appointed for four years by the central government with the advice of the central board of directors. It has two training colleges for its officers i.e. Reserve Bank Staff College, Chennai and College of Agricultural Banking, Pune. Three autonomous institutions are run by RBI namely National Institute of Bank Management (NIBM), Indira Gandhi Institute of Development Research (IGIDR) and Institute for Development and Research in Banking Technology (IDRBT). There are also four zonal training centres at Mumbai, Chennai, Kolkata, and New Delhi.
Functions Of Central Bank Of India(RBI)
Following are the main functions of central bank(RBI) in India-
1) Financial Supervision
The main objective of RBI is to undertake consolidated supervision of the financial sector including commercial banks, financial institutions, and non-banking finance companies.
2) Banker And Debt Manager Of Government
Like an individual need a bank for their financial transactions similarly government also need a bank to carry out their financial transactions. The RBI fulfill this need of the Government of India. RBI maintain its accounts, receive payments into and make payments out of these accounts.
3) Issue Of Currency
Reserve Bank of India is authorized to issue banknotes in India but not authorized to issue coins. The bank also have right to destroy banknotes when they are not fit and fine for circulation.
4) Banker’s Bank
Like we all requires bank in our daily life bank also need bank for their savings and loan requirement. Reserve Bank of India work as a central bank in which commercial banks are account holders and they can deposit money. It provide all banking facility to other banks. As a bankers’ bank, RBI do clearance of cheques between the commercial banks and also help in inter-bank transfer of funds.
5) Regulator Of Banking System
RBI is responsible for regulating the nation’s financial system. As a regulator and supervisor of the banking system it ensures financial stability & public confidence in the banking system.
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