What is RBI & its Functions ?
Reserve Bank of India :
- Head Quarter: Mumbai
- Four Local Boards : Kolkata, Delhi, Chennai and Mumbai.
- Objectives : Short terms loans to Govt. under ways and means advances.
- Governor : Dr.Raghu Ram Rajan
- Four Deputy Governors
- 1. Mr.Harun Rashid Khan
- 2. Mr.S.S. Mundra
- 3. Dr.Urjit R. Patel
- 4. Mr. R. Gandhi
- It has 4 regional ofices, 15 Branches and 5 sub-ofices.Reserve Bank of India (RBI) is the Central Bank and Supreme monetary authority of India.
- RBI was established on April 1, 1935 under RBI Act 1934.
- RBI was established with 5 crore as its capital as a private shareholders bank.
- RBI was nationalised on January 1, 1949.
- Financial year of RBI is from July 1 to June 30.
Functions of RBI :
- It acts as a central bank of India.
- It acts as a banker to the Central and State Government.
- It acts as an advisor to the government.
- It acts as bankers bank and supervisor.
- RBI acts as the controller of money supply and credit.
- It manages the foreign exchanges.
- Rbi promotes commercial banking, rural (agricultural) credit, industrial finance and export finance etc.
- RBI issues currency.
- RBI acts as central clearing house for inter bank transactions.
- It act as lender of last resort.