· RBI means Reserve Bank of India
· The RBI was established by the reference of Hilton Young Commission recommendation in 1st April 1935.
· In that time official name of RBI was Commission on Indian Currency and Finance.
· RBI Act was passed in Parliament in 1934.
· When RBI was 1st time established that time Head Office was in Kolkata. But after two year in 1937 Head was changed and now Head Office is in Mumbai.
RBI has four boards and they are situated in four direction of country.
(1) East - Kolkata
(2) West - Mumbai
(3) North - Delhi
(4) South - Chennai
RBI was nationalized in 1949 and The 1ST Governor of RBI was CD Deshmukh. Now RBI Governor is Urgit Patel.
Functions of RBI:-
(1) Note Issuing Authority:-
RBI has Authority to issue the note of 2 rs. To 10000. In 1960 5000 and 10000 currency was issued but in 1978 it is demonetized.
Regulator and Supervisor:-
· RBI regulates the many types of banking and non banking financial company.
· RBI issuing the licenses for new bank.
· Inspecting the working of banks with regards to Organizational set-up, Branch expansion.
Custodian of Foreign Reserves:-
· RBI is responsible for managing the investment and utilization of the country’s Foreign Reserve.
· RBI issuing the Foreign exchange foe external trade.
· RBI also controls Imports by controlling the Foreign exchange.
Credit Control:-
· RBI controls the Demand and Supply of money in Economy.
· To boost the Economy by facilitating the flow of adequate volume of bank credit to different sectors.
Conclusion:-
Above discussion we understand about RBI and its functions. And we also understand how it controls the money in economy. Now we can say the RBI called Bankers of all Banks.
