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.