Remember as little kids how excited we were to get our First share of pocket money and back in those days Financial opulence was our Piggy Bank the more it jingled the more richer we felt .The rat race continued .But, Did we ever question ourselves where all this money comes from .No prizes for guessing RESERVE BANK OF INDIA of course!!.Let’s now dive into the who’s and what’s of RBI, Why and when it got formed
RBI was formed by an act of the then British Parliament on 1st April 1935 according to the RBI Act 1934. The headquarters of the Reserve Bank was initially established in Calcutta which was the financial capital back in those days but was permanently moved to Mumbai in 1937. An impressive piece of architecture the main building is situated in Fort, Mumbai and the new central office building is a plush swanky Multi storied building Towering high against the Arabian Sea .The Central Office is where the Governor sits and where policies are formulated.
It started off as a private bank originally known as imperial Bank of India and as of now the Reserve Bank is fully owned by the Government of India. The primary function of Reserve Bank of India is embedded in the Preamble Itself which is
“…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.”
>>ISSUE OF BANK NOTE S
RBI is the sole body in the country who has been entrusted the task of printing and issuing currency note it has setup issue counters and currency chest to facilitate exchange of old and mutilated bank notes to new ones the department of currency management has an elaborate mechanism right from the design of currency note which itself has many security features keeping it in line with the latest printing technology to be ahead from Fraudster who make a failing attempt to make counterfeit currency
>>KEEPING OF RESERVE
Not only that the apex bank is also entrusted in maintaining the foreign exchange and the value of its currency vies-a –vis other countries in the world there are many departments working towards it mainly Foreign exchange Department and DEIO[Department of external Investments and operation ]
>>MONETARY STABILITY
For Monetary stability one has Monetary policy Department, Financial Stability Unit, Department of Economic analysis and policy, Department of Statistics and information management
>>CREDIT SYSTEM
RBI acts as a BANKER to the government that is It’s a Banker to both the central government and to select state Government on request by which it maintains the accounts for the government and offers loans when in case of need it also acts as an advisor to manage and maintain the economic well being of the country .RBI is also known as Banker’s Bank wherein it offers banking services to all the Banks in the country it issues licenses for any bank to operate in the country and it is responsible to maintain sound business practices in the area of banking towards this it conducts supervision of the banks on regular basis
Unlike other central Banks RBI is unique that it conducts many other developmental goals for the industrial, Agriculture and poverty alleviation.RBI has chartered the country boldly and stead fast and it has proved its metal successfully coming out in flying colors to all the challenges that has come its way and hence it has gained a very high reputation for its caliber and acumen amongst all the countries in the world
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