The Reserve Bank Of India (Hindi ：भारतीय रिज़र्व बैंक， English: RBI) Is The Central Bank Of India And An Independent Body Responsible For The Supervision Of Indian Banks. It Is Responsible For Issuing And Supplying Indian Rupees, And Also Manages The Country's Main Payment System.
The General Policy Direction Of The Reserve Bank Of India Is Determined By The 21-member Central Council, Which Consists Of: The Governor, 4 Deputy Governors, 2 Representatives Of The Ministry Of Finance (usually The Secretary Of Economic Affairs And The Secretary Of Financial Affairs); 10 Government-nominated Directors, And 4 Directors Representing The Local Boards Of Mumbai, Kolkata, Chennai, And Delhi. Each Local Board Consists Of 5 Members Representing Regional Interests As Well As Those Of The Cooperative Banks And Local Banks.
The Reserve Bank Of India Is A Member Of The Asian Clearing Union. It Is Also Active In Promoting Inclusive Financial Policies And Is One Of The Key Members Of The Alliance For Financial Inclusion (AFI). The Reserve Bank Of India Is Often Referred To Locally As "Mint Street".
Functions
According To The Preamble Of The Reserve Bank Of India Act, The Basic Functions Of The Reserve Bank Of India Are As Follows:
History
Before The Establishment Of The Monetary Policy Board Of India In 2016, The Reserve Bank Of India Had Full Control Over Domestic Monetary Policy. The Reserve Bank Of India Was Established By The Reserve Bank Of India Act Passed By The Central Legislative Assembly In 1934 And Was Officially Established On April 1, 1935. Its Original Shares Were Divided Into 100 Fully Paid Shares. Originally Privately Owned, The Reserve Bank Of India Was Nationalized On January 1, 1949 After India Became Independent On August 15, 1947, And Was Fully Owned By The Government Of India. Even Though Burma Withdrew From British India In 1937, The Bank Was The Central Bank Of Burma Until April 1947; Similarly, Even After The Partition Of India And Pakistan In 1947, The Bank Was The Central Bank Of Pakistan Until June 1948.
On July 11, 2022, The Reserve Bank Of India Introduced A Rupee Settlement Mechanism For International Trade With Immediate Effect
Branches And Supporting Institutions
The Reserve Bank Of India Has 4 Regional Representatives: New Delhi (North), Chennai (South), Kolkata (East), Mumbai (West). The Representative Is Composed Of Five Members Appointed By The Central Government For A Four-year Term And Is Responsible For Advising The Central Board, Which Serves As A Forum For Regional Banks, And Handling Tasks Entrusted By The Central Board.
The RBI Has 31 Branches In India, The Vast Majority Of Which Are Located In The Capital Cities Of The States, With The Exception Of The Nagpur Branch (which Is Actually The Second Capital Of Maharashtra)
The Central Bank Has Two Colleges For Training Staff, The Reserve Bank Staff College In Chennai And The Agricultural Bank Of China College In Pune. The Central Bank Also Has Three Autonomous Institutions, Namely The National Bank Management Institute (NIBM), The Indira Gandhi Institute For Development Research (IGIDR) And The Institute Of Banking Technology Development (IDRBT). It Also Has Four Regional Training Centres In Mumbai, Chennai, Kolkata And New Delhi.
Governor
In December 2018, Central Bank Governor Urjit Patel Resigned, Becoming The First RBI Governor To Resign While In Office Since The 1990s. According To Media Reports, He Is Generally Believed To Have Resigned Due To Dissatisfaction With Indian Prime Minister Narendra Modi's Interference In Central Bank Decision-making.
The Current Governor Is Shaktikanta Das.
Publications
As Required By The Banking Supervision Act 1949, The RBI Publishes An Annual Report Entitled "Trend And Progress Of Banking In India", Which Summarizes Trends And Developments Across The Financial Sector. Since April 2014, The RBI Has Started Issuing Policy Updates Every Two Months.
