Fast Facts on Reserve Bank of India

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 – Shaktikanta Das

Present Deputy governor of RBI – Shri M. K. Jain, Shri B.P. Kanungo, Dr. Viral V. Acharya and Shri 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

The central office was initially located at – Calcutta

Currently, Central office is located at – Mumbai, It was permanently moved in 1937

The 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 the flow of credit to the productive sectors

#2. Supervisory Function –

•  To protect depositors interests
•  Provide effective customer services
•  Maintain public confidence

#3. The 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 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 ggovernment, 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.

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