The Reserve Bank of India (RBI)

RBI

Today’s we are going to discuss about RESERVE BANK OF INDIA.Here is the important topic for all competitive exams.So let’s have a look.

​The Reserve Bank of India is the Central Bank of India, which is located in Mumbai as head office. Though Reserve Bank of India has Nationalised in 1935, but there is a history about the formation and Act of Nationalisation.

#1. Important Points to be Remember : 

– Firstly, in 1926 Royal Committee has formed.

– In 1932 – Central Banking    Employee Committee.

– 1933 – Parliamentary Bill.

– 1934 – Reserve Bank of India has enacted the act.

After Knowing all the history and background about the Reserve Bank now we should make the question about……

How it is established ???

When it has Nationalised ??

Who are the Board Members????

What are the Policies ???

#2. Establishment of RBI : 

The Reserve Bank of India was established on April 1, 1935 ( With 5 Crores of investment). In accordance with the provisions of the Reserve Bank of India, 1934. The Central Bank of India has initially established in Calcutta later moved from Calcutta to Mumbai as head office in 1937. The Governor hold the Central Office and policies enacted. In 1949 the Reserve Bank of India has Nationalised.

#3. Board Members of RBI : 

The Reserve Bank Governed by the Directors and Members, They are :

Official Directors :

One Governor and Four Deputy Governors(Not More than Four).

Non-Official Directors :

Ten directors from various fields and that too two from government officials.

NOTE : 

– First Governor of Reserve Bank of India – Osborne Smith (1935)

– First Governor of Independent India – C.D Deshmukh (1947)

-Present  Reserve Bank of India Governor – Dr. Urjit Ravindra Patel (2017)

RBI has 19 Regional office branches like Hyderabad, Chennai…….(almost all in State Capital Head Quarters) and 9 Sub- offices.

Four directors each from local boards.

#4. RBI Local Boards are :

– WEST (Mumbai)

– EAST (Kolkata)

– NORTH (New-Delhi)

– SOUTH (Chennai)

》 There are different types of Inflation are described as :

i) Creeping Inflation

ii) Walking Inflation

iii) Running Inflation

iv) Hiper Inflation

#5. RBI Mint Units and Currency Printing Presses :

There are four Mint Units which runs under the Security Printing and Minting Corporation of India Limited (SPMCIL).

– Mumbai

– Kolkata

– Hyderabad

– Noida

And there are Currency Printing Presses listed as Below :

– Currency Note Press (Nashik)

– Bank Note Press (Dewas)

– Security Printing Press (Hyderabad)

– Security Paper Mill (Hoshangabad)

By the initiative of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) which is wholly governed by the Government of India which is registered in Bangalore and having 2 presses One at Mysore Printing Press, Karnataka and Other is at Salboni, West Bengal.

#6. Monitory Policy Rates :

It is the use of instruments under the control of the central bank.

– Bank Rate (BR) – RBI to Banks(Which is a long Term Criteria).

– Repo Rate (RR) – RBI to Banks( Which is a Short Term Criteria it’s nothing but ‘Pushing’).

– Reverse Repo Rate (RRR) – Bank to RBI which means in terms of heavy floating of money banks will give to RBI because of safe landing.and huge interest on money. So, banks may encourage to RBI on Reverse Repo Rate.

#7. Reserve Ratio :

i) Cash Reserve Ratio (CRR) :

In India, Cash Reserve Ratio is is the amount of the funds that the bank should keep in RBI.

ii) Statutory Liquidity Ratio (SLR) :

In India Statutory Liquidity Ratio refers, that the amount of commercial banks should be maintain in the form of cash or government approved securities that means bond and  shares of different companies.

#8. Training Institutes of RBI : 

There are two important colleges as part of Reserve Bank of India for the staff. They are

– College of Agricultural Banking, Pune.

– Reserve Bank of India Staff College, Chennai.

And there are some autonomous Colleges, They are :

– National Institute of Banking Management (NIBM), Pune

– Indira Gandhi Institute for Development Research (IGIDR), Mumbai

– Institute for Development and Research in Banking Technology (IDRBT), Hyderabad

#9. Preamble of The Reserve Bank Of India :

Preamble

#10. Important Banking Regulation Acts :

In this Section there are some important Regulation Acts admired by the Reserve Bank Of India.

– Reserve Bank of India Act, 1934

– State Bank of India Act, 1955

– Government Securities Regulations, 2007

– Banking Regulation Act, 1949

– Foreign Exchange Management  Act, 1999

– Factoring Regulation Act, 2011

– Regional Rural Banks Act, 1976

– National Housing Bank Act, 1987

– National Bank for Agriculture and Rural Development Act, 1981