New Delhi: The Reserve Bank of India (RBI), India’s central banking institution, celebrates its 85th anniversary on April 1, 2020. The leading bank responsible for India’s monetary policy began operations on April 1st and entered into force in 1935 under the Reserve Bank of India Act of 1934.
The Reserve Bank of India is the regulatory body for the entire Indian banking industry and plays an important role in the Indian government’s development strategy. It oversees commercial banks and non-banking finance companies working in India, and also serves as a leader in the banking system and money markets. It oversees the country’s money supply and credit.
According to history, RBI was established on April 1, 1935, to deal with the economic difficulties of the post-first World War era. The top Bank was conceptualized based on the guidelines and prospects proposed by BR Ambedkar in his book entitled “The Problem of the Rupee – Its origin and its solution” and has been submitted to the Hilton Youth Commission.
Key features of the Reserve Bank of India (RBI):
- The Reserve Bank of India is headed by Governor Shaktikanta Das. There are four deputy governors. This time it was B. P. Kanungo, N. S. Vishwanathan, Mahesh Kumar Jain and Michael Patra.
- The central board of directors is the main committee of the central bank and the Government of India appoints the directors for a term of four years.
- The logo of the Reserve Bank of India (RBI) has a tiger and a palm tree inspired by the East India Company’s Double Mohur, which replaced the tiger with a lion. The financial year of the Reserve Bank of India is from July 1 to June 30.
- The Reserve Bank of India has four regional representatives: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai.
- The main goal of RBI is to comprehensively regulate the financial sector, including commercial banks, financial institutions and non-banking finance companies.
- With the exception of the Indian government, the Reserve Bank of India is the only institution authorized to issue banknotes in India.
- The Reserve Bank of India maintains the country’s economic structure in order to achieve the goals of price stability and economic development.