RBI Headquarter located in Mumbai, Maharashtra Founded on April 1st, 1935, Governor Duvvuri Subbarao
Indian rupees (₹) a unit of currency ISO 4217 Code in India reserves of US$30,210 billion (US$302.1 billion) Base borrowing rate 8.00% Base deposit rate 6.00%
The nation’s central bank is called the Reserve Bank of India. Since they were first founded in the early 20th century, most central banks as we know them now are a relatively new invention.
The Hilton Young Commission’s recommendations served as the foundation for the creation of the Reserve Bank of India. The Bank’s operation is governed by the RBI Act, 1934 (II of 1934), which went into effect on April 1, 1935.
Control the issuance of currency Maintain reserves in order to ensure monetary stability and to run the nation’s credit and currency system effectively. The handling of Government accounts and public debt, which had previously been handled by the Controller of Currency and the Imperial Bank of India, were transferred to the Bank when it first started operating. The current currency offices at Cawnpore (Kanpur), Bombay, Madras, Rangoon, Karachi, and Lahore were transformed into branches of the Issue Department. The Banking Department opened offices in Delhi, Rangoon, Bombay, Madras, and Calcutta.
Despite the fact that Burma (Myanmar) broke away from the Indian Union in 1937, the RBI remained the country’s central bank until the Japanese occupation of Burma and then until April 1947. The Reserve Bank operated as Pakistan’s central bank following the division of India until June 1948, when the State Bank of Pakistan started operations. The Bank was nationalized in 1949 after being founded as a shareholder’s bank.
The Reserve Bank of India had the intriguing quality that from the beginning, people saw the bank as having a specific function to play in the context of development, notably agriculture. In the 1960s, when India began its plan endeavours, the Reserve Bank, in many ways, pioneered the idea and practise of leveraging money to catalyse development, the Bank’s development function came into sharper focus. The Bank also played a crucial role in institutional development, helping to establish institutions like the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India, and others to create the financial infrastructure of the country.
The Bank’s attention has returned to crucial central banking duties like monetary policy, bank supervision and regulation, and overseeing the payments system as a result of liberalisation, and it is now concentrating on the growth of the financial markets.