Reserve Bank of India

Reserve Bank of India
Seal of RBI
Seal of RBI
Reserve-Bank-of-India.jpg
HeadquartersMumbai, Maharashtra, India
Coordinates18°55′58″N 72°50′13″E / 18°55′58″N 72°50′13″E / 18.932679; 72.836933
Established1 April 1935; 83 years ago (1935-04-01)
OwnershipGovernment of India (100%)
GovernorUrjit Patel[1]
Central bank ofIndia
CurrencyIndian Rupee (₹)
INR (ISO 4217)
Reserves2,751,400 crore (US$420 billion)[2][3]
Bank rate6.00%[4]
Interest on reserves4.00% (market determined)[5]
WebsiteOfficial website

The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.[6] The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders.[7] Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949.[8]

The RBI plays an important part in the Development Strategy of the Government of India. It is a member bank of the Asian Clearing Union. The general superintendence and direction of the RBI is entrusted with the 21-member central board of directors: the governor; 4 deputy governors; 2 finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary); 10 government-nominated directors to represent important elements of India's economy; and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards consists of 5 members who represent regional interests, the interests of co-operative and indigenous banks.

The central bank was an independent apex monetary authority which regulates banks and provides important financial services like storing of foreign exchange reserves, control of inflation, monetary policy report till 2016 August. A central bank is known by different names in different countries. The functions of a central bank vary from country to country and are autonomous or quasi-autonomous body and perform or through another agency vital monetary functions in the country. A central bank is a vital financial apex institution of an economy and the key objects of central banks may differ from country to country still they perform activities and functions with the goal of maintaining economic stability and growth of an economy.[9]

The bank is also active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion (AFI). The bank is often referred to by the name Mint Street.[10] RBI is also known as banker's bank.

Preamble

The preamble of the Reserve Bank of India describes the basic functions of the reserve bank as:

"to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth."

Other Languages
Bahasa Indonesia: Reserve Bank of India
Simple English: Reserve Bank of India