Reserve of Bank India Services Board
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RESERVE BANK OF INDIA
The ReserveBank of India was established on April 1, 1935 in accordance with theprovisions of the Reserve Bank Of India Act, 1934.The Central Office of the Reserve Bank has been in Mumbaisince inception. The Central Office is where the Governor sits and is wherepolicies are formulated.Though originally privately owned, since nationalization in1949, the Reserve Bank is fully owned by the Government of India.
Preamble
RESERVE BANK OF INDIA
The ReserveBank of India was established on April 1, 1935 in accordance with theprovisions of the Reserve Bank Of India Act, 1934.The Central Office of the Reserve Bank has been in Mumbaisince inception. The Central Office is where the Governor sits and is wherepolicies are formulated.Though originally privately owned, since nationalization in1949, the Reserve Bank is fully owned by the Government of India.
Preamble
The Preamble of the Reserve Bank of India describes thebasic functions of the Reserve Bank as:
“…to regulate the issue of BankNotes and keeping of reserves with a view to securing monetary stability inIndia and generally to operate the currency and credit system of the country toits advantage.”
Central Board
The Reserve Bank’s affairs are governed by a central boardof directors. The board is appointed by the Government of India in keeping withthe Reserve Bank of India Act.
Appointed/nominated for a period of four years
Constitution:
Official Directors
Full-time: Governor and not more than four Deputy Governors
Non-Official Directors
Nominated by Government: ten Directors from various fieldsand one government Official
Others: four Directors – one each from four localboards
Functions: General superintendence and direction of theBank’s affairs
Local Boards
*One each for the fourregions of the country in Mumbai, Calcutta, Chennai and New Delhi
*Membership:
*Consistof five members each
*Appointedby the Central Government
*Fora term of four years
Functions: To advise the Central Board on local matters andto represent territorial and economic interests of local cooperative andindigenous banks, to perform such other functions as delegated by Central Boardfrom time to time.
Main Functions Of Reserve Bank Of India
* Monetary Authority
Formulation and Implementation of monetary policies.
Maintaining price stability and ensuringadequate flow of credit to the Productive sectors.
Regulator and supervisor of the financial system
* Prescribes broadparameters of banking operations within which the country’s banking and financial system functions.
* Maintain public confidence in the system, protect depositors’interest and provide cost-effectivebanking services to the public.
Authority On Foreign Exchange
* Manages the ForeignExchange Management Act, 1999.
*Facilitateexternal trade and payment and promote orderly development and maintenance offoreign exchange market in India
Issuerof currency:
*Issues and exchanges ordestroys currency and coins not fit for circulation.
*Providethe public adequate quantity of supplies of currency notes and coins and ingood quality.
Developmental role
* Performs a wide range of promotional functionsto support national objectives.
Related Functions
*Banker to the Government: performs merchantbanking function for the central and the state governments;also acts as their banker.
Banker to banks:maintains banking accounts of all scheduled banks
Source : RBI
