Reserve Bank of India (RBI)
Reserve Bank of India (RBI)
» The RBI was set-up on the basis of Hilton Young Commission recommendation in April, 1935, with the enactment of RBI Act, 1934.
» The RBI continued to serve as the Center Bank to Burma (Myanmar), until Japanese occupation of Myanmar in April, 1947. It also continued to serve as Center Bank to Pakistan, until June 1948.
» The RBI was nationalized in 1949, and its First Indian Governor was C.D. Deshmukh.
Functions of RBI
1. The RBI regulates issue of bank notes above one rupee denominations; Government of India issues one rupee notes/coins of all denominations below one rupee. The RBI undertakes distribution of all notes and coins on behalf of the government.
2. It acts as the banker of Government of India and the state government, commercial banks, and state co-operative banks.
3. It formulates and administers the monetary policy
4. It maintains exchange value of rupee.
5. It represents India at the IMF.