The functions of RBI include maintaining monetary stability keeping in mind the objective of growth. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. It was started with a paid up capital of rupees fifty million. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937
Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India. The primary role of the RBI, as the Act suggests, is monetary stability and stable expectations of inflation
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
The Reserve Bank’s affairs are governed by a central board of directors. The board is appointed by the Government of India.
One each for the four regions of the country in Mumbai, Kolkata, Chennai and New Delhi
To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.
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