![]() Though set up as a shareholders' bank, the RBI has been fully owned by the Government of India since its nationalisation in 1949. After the Partition of India in August 1947, the bank served as the central bank for Pakistan until June 1948 when the State Bank of Pakistan commenced operations. The RBI also acted as Burma's (now Myanmar) central bank until April 1947 (except during the years of Japanese occupation (1942–45)), even though Burma seceded from the Indian Union in 1937. The Central Office of the RBI was established in Calcutta (now Kolkata) but was moved to Bombay (now Mumbai) in 1937. The Preamble of the RBI describes its basic functions to regulate the issue of banknotes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. However, it was decided to replace the lion with the tiger, the national animal of India. The original choice for the seal of RBI was the East India Company Double Mohur, with the sketch of the Lion and Palm Tree. Eventually, the Central Legislative Assembly passed these guidelines as the RBI Act 1934. The bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as the Hilton Young Commission. The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the First World War. Reserve Bank of India-10 Rupees (1938), the first year of banknote issue. "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." History The preamble of the Reserve Bank of India describes the basic functions of the reserve bank as: The bank is often referred to by the name 'Mint Street'. The bank is also active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion (AFI). It is a member bank of the Asian Clearing Union. Each of these local boards consists of five members who represent regional interests and the interests of co-operative and indigenous banks. The overall direction of the RBI lies with the 21-member central board of directors, composed of: the governor four deputy governors two finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary) ten government-nominated directors and four directors who represent local boards for Mumbai, Kolkata, Chennai, and Delhi. Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949. ![]() The original share capital was divided into shares of 100 each fully paid. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934. Until the Monetary Policy Committee was established in 2016, it also had full control over monetary policy in the country. Deposit Insurance and Credit Guarantee Corporation was established by RBI as one of its specialised division for the purpose of providing insurance of deposits and guaranteeing of credit facilities to all Indian banks. The RBI established the National Payments Corporation of India as one of its specialised division to regulate the payment and settlement systems in India. Bharatiya Reserve Bank Note Mudran (BRBNM) is a specialised division of RBI through which it prints and mints Indian currency notes (INR) in four of its currency printing presses located in Nashik ( Maharashtra Western India), Dewas ( Madhya Pradesh Central India), Mysore ( Karnataka Southern India) and Salboni ( West Bengal Eastern India). It also manages the country's main payment systems and works to promote its economic development. ![]() It is responsible for the control, issue and maintaining supply of the Indian rupee. It is under the ownership of Ministry of Finance, Government of India. The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. Unsourced material may be challenged and removed.įind sources: "Reserve Bank of India" – news Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification.
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