In view of the coronavirus pandemic, we are making LIVE CLASSES and VIDEO CLASSES completely FREE to prevent interruption in studies
General Awareness > Banks > Reserve Bank of India
Banks

Reserve Bank of India

The Reserve Bank of India is the central bank of India. It was formed in the year 1935 on 1st April. It was established that under the reserve bank of India act of 1934. Initially, till 1949 the reserve bank of India was private. After then the bank was nationalized by the government of India. Earlier the headquarters of the RBI was in Calcutta and after the nationalization, it was shifted to Mumbai.

Suggested Videos

Play
Play
Play
Arrow
Arrow
ArrowArrow
Introduction to culture and civilisation
Cities and Challenge of Environment
Social Changes in Cities During Industrialisation
Slider

 

Objectives of Reserve Bank of India

Reserve Bank of India

The Reserve Bank of India was established with the main motto of regulating all the banks in India. The objective was to keep in check the reserves as well as the issue of bank notes.

So, it was done to secure the monetary stability and thereby to operate the credit system and currency of the country to its own advantage.

Prior to the RBI, the government of India and the Imperial Bank of India were unable to control the Indian financial system by keeping it in check.

Therefore, a committee led by the Hilton and young commission in 1935, shifted the entire financial system to the RBI.

So, the primary target for RBI was to control and regulate the various financial policies and help in the development of the banking facilities throughout India.

The primary objective for the RBI would be to regulate the various banking functions for India in the money market. Thus, they focus mainly on issuing new notes.

The RBI was established with the aim of being a banker’s bank and also the bank for the government. Its task was to promote the economic growth of the country through various frameworks and economic policies of the government.

Browse more Topics under Banks

Learn more about the Functions of RBI here in detail.

Governing of the RBI

On basis of the RBI act of 1934, RBI is governed by a board of directors centrally. So, this board is unbiased and is appointed by the Indian government.

The entire management and organization of the RBI are on the shoulders of these directors. Thus, they are entirely responsible for the management of the RBI.

These board of directors team consists of 20 people. This includes 1 Governor, 4 deputy Governors, and 15 directors.

Governor is given the highest authority in the RBI. He is appointed for 5 years by the Indian government. He can also be re-elected for another term. While 4 deputy Governors are appointed by the central government.

They are also given tenure of 5 years. The fifteen directors are also appointed by the central government of India. Out of these 15, 4 directors are from the 4 local boards and they are nominated by the government.

The central board of directors gases all the powers to run the RBI. Thus, they should meet at least 6 times and once every 3 months a year.

Usually, there is always a meeting mixed in the month of March at New Delhi with the finance minister of India to discuss the upcoming budget. Similarly, one meeting is held in Mumbai every August before the annual reports are released.

Practice Questions

Q. Under which act was the Reserve Bank of India established?

A. Reserve Bank of India Act 1935

B. The Reserve Bank of India Act 1930

C. Reserve Bank of India Act 1932

D. The Reserve Bank of India Act 1934

Answer: The Reserve Bank of India Act 1934

Q. The RBI headquarter is not situated in which of these following cities?

A. Chennai

B. Mumbai

C. Kolkata

D. Bengaluru

Answer:

D. Bengaluru

Share with friends

Customize your course in 30 seconds

Which class are you in?
5th
6th
7th
8th
9th
10th
11th
12th
Get ready for all-new Live Classes!
Now learn Live with India's best teachers. Join courses with the best schedule and enjoy fun and interactive classes.
tutor
tutor
Ashhar Firdausi
IIT Roorkee
Biology
tutor
tutor
Dr. Nazma Shaik
VTU
Chemistry
tutor
tutor
Gaurav Tiwari
APJAKTU
Physics
Get Started

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
athena Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
athena
Guest
athena

ATM stands for Automatic Teller Machine, so saying ATM Machine is as redundant as saying Chai Tea

Stuck with a

Question Mark?

Have a doubt at 3 am? Our experts are available 24x7. Connect with a tutor instantly and get your concepts cleared in less than 3 steps.
toppr Code

chance to win a

study tour
to ISRO

Download the App

Watch lectures, practise questions and take tests on the go.

Get Question Papers of Last 10 Years

Which class are you in?
No thanks.