The Reserve Bank of India was established on April 1, 1935, under the Reserve Bank of India Act, 1934. The act came into force on 6th March, 1934. The Reserve Bank of India commenced its operations on 1st April, 1935. The act provides for the Constitution management and functions of the RBI. It also empowers it to exercise control and regulations, over the Commercial Banks, the non-banking finance companies and the financial institutions.
The Act is divided into 61 Sections and four schedules. Out of these four schedules, third and fourth schedule is repealed.
The Preamble of Act specifies the objective of RBI is to:
Some important sections in the Act are:
Read Next: Banking Regulation Act 1949
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