The Reserve Bank of India is India's Central Banking Institution, which controls

the Monetary Policy of the Indian Rupee. It commenced its operations on 1 April
1935 during the British Rule in accordance with the provisions of the Reserve B
ank of India Act, 1934.[4] The original share capital was divided into shares of
100 each fully paid, which were initially owned entirely by private shareholder
s.[5] Following India's independence on 15 - August - 1947, the RBI was national
ised in the year of 1 January 1949.
The RBI plays an important part in the Development Strategy of the Government of
India. It is a member bank of the Asian Clearing Union. The general superintend
ence and direction of the RBI is entrusted with the 21-member Central Board of D
irectors: the Governor (Dr. Raghuram Rajan), 4 Deputy Governors, 2 Finance Minis
try representatives, 10 government-nominated directors to represent important el
ements from India's economy, and 4 directors to represent local boards headquart
ered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards consi
sts of 5 members who represent regional interests, and the interests of co-opera
tive and indigenous banks.
The bank is also active in promoting financial inclusion policy and is a leading
member of the Alliance for Financial Inclusion (AFI).
Contents [hide]
1 History
1.1 1935 1950
1.2 1950 1960
1.3 1960 1969
1.4 1969 1985
1.5 1985 1991
1.6 1991 2000
1.7 Since 2000
2 Structure of RBI
2.1 Central Board of Directors
2.2 Governors
2.3 Supportive bodies
2.4 Offices and branches
3 Main functions
3.1 Regulator and supervisor of the financial system
3.2 Managerial of exchange control
3.3 Issuer of currency
3.4 Banker's bank
4 Detection of fake currency
4.1 Developmental role
4.2 Related functions
5 Policy rates and reserve ratios
5.1 Bank rate (Repo Rate)
5.2 Reserve requirement cash reserve ratio (CRR)
5.3 Statutory liquidity ratio (SLR)
6 Publications
7 Further reading
8 References
9 External links
History[edit]
1935 1950[edit]
Reserve Bank of India-10 Rupees (1937), first year of banknote issue.
The Reserve Bank of India was founded on 1 April 1935 to respond to economic tro
ubles after the First World War.[6] RBI was conceptualized as per the guidelines
, working style and outlook presented by Dr.B. R. Ambedkar as written in his boo
k The Problem of the Rupee
Its origin and its solution. in front of the Hilton You
ng Commission.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 Commiss
ion.[7] The original choice for the seal of RBI was The East India Company Doubl
e Mohur, with the sketch of the Lion and Palm Tree. However it was decided to re
place the lion with the tiger, the national animal of India. The Preamble of the
RBI describes its basic functions to regulate the issue of bank notes, keep res
erves to secure monetary stability in India, and generally to operate the curren
cy and credit system in the best interests of the country. The Central Office of
the RBI was established in Calcutta (now Kolkata), but was moved to Bombay (now
Mumbai) in 1937. The RBI also acted as Burma's central bank, except during the
years of the Japanese occupation of Burma (1942 45), until April 1947, even though
Burma seceded from the Indian Union in 1937. After the Partition of India in 19
47, the bank served as the central bank for Pakistan until June 1948 when the St
ate Bank of Pakistan commenced operations. Though set up as a shareholders bank,
the RBI has been fully owned by the Government of India since its nationalizatio
n in 1949.[8]