Reserve Bank of India

Reserve Bank of India (RBI) is also called India's Central Bank. Reserve Bank of India was founded in 1935 to reply to the financial troubles after the first world war. The Reserve Bank of India was started on the suggestions of the Hilton-Young Commission. Central Office of the RBI was initially started from the Kolkata, West Bengal, however was completely moved to Mumbai in 1937. The RBI continued to behave as the central bank for Myanmar until Japanese occupation of Burma and later up to April 1947, though Burma seceded from the Indian Union in 1937.

Initially, the banking system was owned privately, it has been taken up the Indian Government ever since, it was nationalized. The bank has been vested with huge responsibility of reviewing and reconstructing the financial stability of the nation by formulating economic policies and guaranteeing a proper exchange of currency. In this manner, the Reserve Bank of India is also called the banker of banks. The Preamble of the Reserve Bank of India (RBI) speaks in regards to the basic functions of the bank. It is a government body and deals with the issuing bank notes and holding reserves in order to secure monetary stability in india. Additionally, aims at working and boosting up the currency and credit infrastructure of India.

Legal Functions of the Reserve Bank of RBI

• Reserve Bank of India Act, 1934
• Umbrella Acts
• Banking Regulations Act, 1949

Primary Functions of the Reserve Bank of India

Financial Authority : The Reserve Bank of India takes a number one role in formulating, implementation and monitoring the financial policy. One of the main functions of the bank is to take care of price stability and ensure sufficient circulation of credit to the commercial sectors which can be prospering in india.

Regulating & Supervising the Financial system : RBI lays down guidelines for correct and sound banking inside the nation's economic and banking framework. Other than this, The RBI also ensures the interest of the depositor by offering cost effective banking services.

Managing Foreign Exchange (FOREX) : Under the Foreign Exchange Act of 1999, Reserve Bank of India ensures that trade is facilitated together with a correct circulation of payment, development and upkeep of the India's FOREX market.

Issues Currency : This is among the most vital functions of the Reserve Bank of India. It's in full control of issuing, exchanging, circulating and destroying unfit currency from time to time together with maintaining a fresh and adequate supply of currency notes and coins.

Address:

Reserve Bank of India, Central Office,
Shaheed Bhagat Singh Road,
Mumbai - 400001 
Website: www.rbi.org.in