Origins of the Reserve Bank of India

1926: The Royal Commission on Indian Currency and Finance recommended

creation of a central bank for India.
1927: bill to !i"e effect to the abo"e recommendation #as introduced in
the $e!islati"e ssembly% but #as later #ithdra#n due to lack of a!reement
amon! "arious sections of &eo&le.
19'': The (hite )a&er on Indian Constitutional Reforms recommended the
creation of a Reser"e *ank. fresh bill #as introduced in the $e!islati"e
ssembly.
19'+: The *ill #as &assed and recei"ed the ,o"ernor ,eneral-s assent
19'.: The Reser"e *ank commenced o&erations as India-s central bank on
&ril 1 as a &ri"ate shareholders- bank #ith a &aid u& ca&ital of ru&ees fi"e
crore /ru&ees fifty million0.
19+2: The Reser"e *ank ceased to be the currency issuin! authority of *urma
/no# 1yanmar0.
19+7: The Reser"e *ank sto&&ed actin! as banker to the ,o"ernment of
*urma.
19+2: The Reser"e *ank sto&&ed renderin! central bankin! ser"ices to
)akistan.
19+9: The ,o"ernment of India nationalised the Reser"e *ank under the
Reser"e *ank /Transfer of )ublic 3#nershi&0 ct% 19+2
The functions of the Reser"e *ank today can be cate!orised as follo#s:
1onetary &olicy
Re!ulation and su&er"ision of the bankin! and non4bankin! financial
institutions% includin! credit information com&anies
Re!ulation of money% fore5 and !o"ernment securities markets as also
certain financial deri"ati"es
6ebt and cash mana!ement for Central and 7tate ,o"ernments
1ana!ement of forei!n e5chan!e reser"es
Forei!n e5chan!e mana!ement8current and ca&ital account mana!ement