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 It is the Central Bank of the country. The Reserve Bank of
India was established in 1935 with a capital of Rs. 5 crore.
This capital of Rs. 5 crore was divided into 5 lakh equity
shares of Rs.100 each. In the beginning the ownership of
almost all the share capital was with the non-government
shareholders. In order to prevent the centralisation of the
equity shares in the hands of a few people, the Reserve Bank
of India was nationalised on January 1, 1949.
The general administration and direction of RBI is managed
by a Central Board of Directors consisting of 20 members
which includes 1 Governor, 4 Deputy Governors, 1 Government
official appointed by the Union Government of India to
give representation to important stratas in economic life of
the country. Besides, 4 directors are nominated by the
Union Government to represent local boards. |
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New Departments Constituted in RBI
On July 6, 2005 Reserve Bank of
India has constituted a new department, named Financial
Market Department for surveillance on financial markets. The
Deputy Governor of RBI Mr. Rakesh Mohan will look after this
newly created department. Besides this new department Mr.
Rakesh Mohan has been given responsibility of Monetary
Policy Department.
The Constituted new Financial Market department will
seperate the activities of debt management and monetary
operations in future. This department will also perform
the
duties of developing & monitoring the instruments of money
market and also monitoring the government securities and
foreign money markets. |
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Apart from the
central board there are 4 local boards also and their head
offices are situated in Mumbai, Chennai, Kolkata and New
Delhi. 5 members of local boards are appointed by the Union
Government
for a period of 4 years. The local boards work according to
the instructions and orders given by the Central Board of
Directors, and from time to time they also tender useful
advice on important matter. The head office of Reserve Bank
of India is in Mumbai. At present Y. V. Reddy is the
Governor of Reserve Bank of India.
Functions of Reserve Bank
1. Issue of Notes –The Reserve Bank has the monopoly of note
issue in the country. It has the sole right to issue
currency notes of various denominations except one rupee
note. The Reserve Bank acts as the only source of legal
tender money because the one rupee note issued by Ministry
of Finance are also circulated through it. The Reserve Bank
has adopted the Minimum Reserve System for the note issue.
Since 1957, it maintains gold and foreign exchange reserves
of Rs. 200 crore, of which at least Rs. 115 crore should be in
gold.
2. Banker to the Government–The second important function of
the Reserve Bank is to act as the Banker, Agent and Adviser
to the Government. It performs all the banking functions of
the State and Central Government and it also tenders useful
advice to the Government on matters related to economic and
monetary policy. It also manages the public debt for the
Government.
3. Banker's Bank–The Reserve Bank performs the same function
for the other banks as the other banks ordinarily perform
for their customers. It is not only a banker to the
commercial banks, but it is the tender of the last resort.
4. Controller of Credit–The Reserve Bank undertakes the
responsibility of controlling credit created by the
commercial banks. To achieve this objective it makes
extensive use of quantitative and qualitative techniques to
control and regulate the credit effectively in the country.
5. Custodian of Foreign Reserves–For the purpose of keeping
the foreign exchange rates stable the Reserve Bank buys and
sells the foreign currencies and also protects the country's
foreign exchange funds.
6. Other Functions–The bank performs a number of other
developmental works. These works include the function of
clearing house arranging credit for agriculture, (which
has been transferred to NABARD) collecting and publishing
the economic data, buying and selling of Government
securities and trade bills, giving loans to the Government
buying and selling of valuable commodities etc. It also
acts as the representative of Government in I.M.F. and
represents the membership of India. |
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1. India Security Press (Nasik
Road)–Postal Material, Postal Stamps, Non-postal Stamps,
Judicial and Non-judicial Stamps, Cheques, Bonds, NSC,
Kisan Vikas Patra, Securities of State Governments,
Public Sector Enterprise and Financial Corporations.
2. Security Printing Press
(Hyderabad)–Established in 1982 for meeting the demand
for postal material by Southern States. It also fulfils
the demand for Union Excise Duty Stamps of the Country.
3. Currency Notes Press (Nasik Road)–Since 1991,
this press prints currency notes of Rs. 1, Rs. 2, Rs. 5,
Rs. 10, Rs. 50, and Rs. 100. (Earlier printing of Rs. 50
and Rs. 100 currency notes was not done here).
4. Bank Notes Press (Dewas)–Currency notes of Rs.
20, Rs. 50, Rs. 100 and Rs. 500 are printed here.
5. Modernised Currency Notes Press–Two new
modernised currency notes press are under establishment
at Mysore (Karnataka) and Salboni (West Bengal).
6. Security Paper Hoshangabad (Established in
1967-68) makes production of Bank and Currency notes
paper.
7. Coins are minted at four places–Mumbai,
Kolkata, Hyderabad and Noida. |
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Website :
www.rbi.org |
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