Established on April 1, 1935 with

share capital of Five Crores on recommendation of Hilton Young Commission RBI was Nationalized in Year 1949.

Central Office was initially

established in Calcutta and moved to Mumbai in 1937

RBI Have 20 Directors :

The Governor Four Deputy Governor One Govt. Official from Ministry of Finance. Ten Nominate Director, nominated by Four Directors to represent Headquarters at Mumbai, Kolkata, Chennai & New Delhi.

Appointed/ Nominated for period of Four Years.

Governor
Dr. D Subbarao

Deputy Governors
Dr. Rakesh Mohan, Smt. S. Gopinath, Smt. Usha Thorat

Executive Directors
Sh. V.K. Sharma, Sh. C. Krishnan, Sh. Anand Sinha, Sh. V.S. Das, Sh. G. Gopalkrishna, Sh. H.R. Khan, Sh. D.K. Mohanty

 Head office in Mumbai.

24 Regional offices, most of them in State

Capital.

Initially Central office initially in Calcutta shifted to Bombay in 1937. Main function were note issuance & being a banker to govt. No formal monetary policy formulation. This lead to number of failures which resulted in the nationalization of reserve bank with the banking regulation Act

Responsibility of RBI get new dimension due to following changes

Launch of Five year plans 1951 Institutional development assumed importance

in1960- 1970 Liberalization 1990

Function of Reserve Bank

Issue of bank notes Banker to government Bankers Bank Custodian of Foreign Exchange Reserves Controller of Credit

Role of RBI
Regulation and supervision of currency Financial market developments Monetary Fiscal Interface

REGULATION AND SUPERVISION OF CURRENCY

Has been in focus after the
nationalization of commercial bank in 1969 Includesa)soundness of banking operation b)Introduction of deposit insurance scheme

FINANCIAL MARKET DEVELOPMENT

Need of financial development
1) administered interest rates 2) weak banking structure 3) lack of proper accounting Development of Financial market Complex process depends on various factors

1)Sound financial institution 2)A Favorable legal framework 3)Technological support 4)Congenial policy environment Importance of Financial Market 1)Improve management of liquidity and treasury operations 2) Improves monetary transmission mechanism 3) Fund based income and profitability

MONETARY FISCAL INTERFACE

MONETARY POLICY- Economic policy of
govt. relating to currency and credit money. FISCAL POLICY- Economic policy of govt. relating to taxation , expenditure, borrowing and management of public debt in an economy

RBI helps the govt .in controlling fiscal deficit

RBI BALANCE SHEET

The RBI balance sheet is a magnetic
resonance image of economy and it is the most important part of RBI.

FEATURES Unique in feature Distinctive feature preparation of two balance sheet One for issuing department and other for banking department

COMMUNICATION POLICY
RBI has transformed functionally and
structurally to the changing needs and external needs through appropriate policy responses. UNTIL1991- Focus on healthy interaction with the press to highlight the transparent manner in which the RBI conducted with central banking.

 AFTER 1991 Well designed communication

policy with features likeTransparency Timeliness Credibility RBI uses website for dissemination of information. Solicits feedback on important issues placed on its website

CONCLUSION
The RBI presently in its seventieth year, has

had a fair degree of success in achieving the twin objective of growth with stability. Controls all the monetary and fiscal policies inside the country . Provides legal framework to the local and multinational banks. Regulates issue of banks Operates the currency and credit system