RBI was established on April 1, 1935 on recommendation of Hilton young’s commission and it was nationalized on January 1, 1949 under RBI act 1934. RBI has 22 regional offices and 4 head quarters (4 directors represent Mumbai , Kolkata, Chennai, and New Delhi).
Aim of RBI:
To regulate the issue of Bank notes and the keeping of reserves with a view to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage.
Functions of RBI:
- Controlling money supply in the system (Monetary policy).
- Maintaining people confidence in banking and financial system.
- Providing tools for customers help through banking ombudsman.
- Issue & exchange or destroy currency are fixed by RBI.
- Issue of licenses for new banks and branches.
- To appoint chairman, directors of banks in India .
- Implementation of government policies related to agriculture and rural development.
- KYC norms and Risk management .
- Audit and inspection.
- RBI controls inflation, Bank credits by changing SLR , CRR , Repo rate and reverse repo rate.
When it was started the lion and palm tree is in the logo later lion was replaced with tiger.
Subsidiaries of RBI:
Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978.
National Bank for Agriculture and Rural Development (NABARD) established on 12 July 1982.
National Housing Bank (NHB) set up on July 9, 1988 under the National Housing Bank Act, 1987.
Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL) established in February 1995.
1st governor – Osborne smith
1st indian governor – C.D.Deshmukh
present (23rd) Governor – Raghuram rajan (he was Chief economist at IMF from 2003 to 2006)