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 – Urjit Patel
Present Deputy governor of RBI – R .Gandhi , S.S.Mundra , N.S.Vishwanathan
Established – 1st April 1935 under RBI Act 1934
RBI Established on the recommendations of - Hilton Young commission.
Headquarter – It is located at Mumbai
Nationalisation of Reserve Bank of India (RBI) – In 1949 under 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 states capital
Central office was initially located at – Calcutta
Currently, Central office is located at – Mumbai , It was permanently moved in 1937
Composition of Reserve Bank of India
- It has 2 Member from 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 flow of credit to the productive sectors
#2. Supervisory Function –
- To protect depositors interests
- Provide effective customer services
- Maintain public confidence
#3. 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 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 the all the banking business of the Government of India on behalf of Government , like :
A. Bank accepts money on account of the government
B. Bank makes payment on behalf of the government , etc.
B. Bank makes payment on behalf of the government , etc.
#6. Custodian of Foreign Reserves –
- RBI has the power of custodian regarding foreign exchange
- RBI maintain 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 initiative like financial Inclusion , Surgical strike on Black money , etc.
