Reserve Bank of India : Brief Facts

Reserve Bank of India : Brief Facts

Reserve Bank of India is established on 1st April, 1935 under Section 3(1) of the Reserve Bank of India Act, 1934 for taking over the management of currency from the Government. It is a body corporate having perpetual succession and common seal, shall be sue and be sued. There are various acts which govern the working of RBI includes Negotiable Instruments Act, 1881, State Bank of India Act, 1955, Banking Regulations Act and the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act).

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Composition of Reserve Bank of India:

Reserve Bank of India is governed by a Central Board of Directors. The appointment of Directors is 4 Years.

1. Official Directors : It consists of full-time directors. It includes Governor and 4 Deputy Governors.

2. Non-official Directors: It consists of 10 Directors for various field who are nominated by Government and 2 Government official. Also, there are 4 directors who are appointed from local boards.

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Main functions of Reserve Bank of India:

The main functions of Reserve Bank of India includes:

1. Monetary Authority

2. Clearing house function

3. Regulator & Supervision of the financial system

4.Lender of Last resort

5. Manager of foreign exchange

6. Banker to the Government

7. Issuer of currency

8. Developmental role

Subsidiaries of RBI

The subsidiariea of RBI are:

1.Deposit Insurance and Credit Guarantee Corporation of India (DICGC), 

2.Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), 

3.Reserve Bank Information Technology Private Limited (ReBIT) and

4. Indian Financial Technology and Allied Services (IFTAS)

Training Establishment of Reserve Bank of India

Reserve Bank of India has 6 training establishment across India which are:

1.Reserve Bank of India Academy,

2.College of Agricultural Banking and

3.Reserve Bank of India Staff College are part of the Reserve Bank

4.National Institute for Bank Management,

5.Indira Gandhi Institute for Development Research (IGIDR), and

6. Institute for Development and Research in Banking Technology (IDRBT) are autonomous.

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Mr. Shaktikant Dass is currently serving as Governor of Reserve Bank of India.