The Reserve Bank of India
was established on April 1, 1935 in accordance with the provisions of the Reserve Bank
of India Act, 1934.
The Central Office of the Reserve Bank was
initially established in Calcutta but was permanently moved to Mumbai in
1937. The Central Office is where the Governor sits and where policies are
formulated.
Though originally privately owned, since
nationalisation in 1949, the Reserve Bank is fully owned by the Government of
India.
- supervision of financial
institutions
- consolidated accounting
- legal issues in bank frauds
- divergence in assessments of
non-performing assets and
- supervisory rating model for
banks.
Monetary
Authority:
- Formulates, implements and
monitors the monetary policy.
- Objective: maintaining price
stability and ensuring adequate flow of credit to productive sectors.
Regulator
and supervisor of the financial system:
- Prescribes broad parameters of
banking operations within which the country''s banking and financial
system functions.
- Objective: maintain public confidence in the system, protect
depositors'' interest and provide cost-effective banking services to the
public.
- Regulator and supervisor of the payment systems
- Authorises setting up of payment systems
- Lays down standards for operation of the payment system
- Issues direction, calls for returns/information from payment
system operators.
Manager
of Foreign Exchange
- Manages the Foreign Exchange
Management Act, 1999.
- Objective: to facilitate
external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.
Issuer of currency:
- Issues and exchanges or destroys
currency and coins not fit for circulation.
- Objective: to give the public
adequate quantity of supplies of currency notes and coins and in good
quality.
Developmental role
- Performs a wide range of
promotional functions to support national objectives.
Related
Functions
- Banker to the Government:
performs merchant banking function for the central and the state
governments; also acts as their banker.
- Banker to banks: maintains
banking accounts of all scheduled banks.
The Reserve Bank of India performs this function under the
guidance of the Board for Financial Supervision (BFS). The Board was
constituted in November 1994 as a committee of the Central Board of Directors
of the Reserve Bank of Indi
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