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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