RESERVE BANK

OF INDIA
(RBI)
ORIGIN

The Reserve Bank of India (RBI) is the central bank

of India, and was established on April 1, 1935 in
accordance with the provisions of the Reserve
Bank of India Act, 1934.

1 Apr. 1935

1949

Since its inception, it has been headquartered in

Mumbai. Though originally privately owned, RBI
has been fully owned by the Government of India
since nationalization in 1949.
CONTD.

RBI is governed by a central board (headed by a

Governor) appointed by the Central Government.
RBI has 22 regional offices across India.

The Reserve Bank of India was set up on the

recommendations of the Hilton Young Commission.
FUNCTIONS OF RBI

Regulator and
Monetary supervisor of
Authority the financial
system
 Monetary Authority

Formulates, implements and

monitors the monetary policy.

Objective: maintaining price

stability and ensuring adequate
flow of credit to productive sectors
 Regulator and supervisor of
the financial system

Prescribes broad parameters

of banking operations within
which the country’s banking
and financial system functions.
 Maintain public confidence in
the system, protect depositors’
interest and provide cost-
effective banking services to
the public.
Objective:
The Banking Ombudsman
Scheme has been formulated
by the Reserve Bank of India
(RBI) for effective redressal of
complaints by bank customers
OTHER FUNCTIONS OF RBI

Manager of Foreign Exchange and Control

Issuer of currency

DEVELOPMENTAL FUNCTIONS

SUPERVISORY FUNCTIONS

PROMOTIONAL FUNCTIONS
 ROLE OF RBI IN AGRICULTURAL
DEVELOPMENT

1. Provide raw material for industrial sector.

2. Provide the market for producer goods and consumer goods produced in
the nonagricultural sector.
3. Provide labour and capital to non-agricultural sector.
4. Provide foreign exchange.
ROLE OF RBI IN AGRI CREDIT

FINANCE COOPERATION
 RBI with the help of various financial
institutions provide:

short term,
AGRI
FINANCE -
RBI medium term and

long term loans to agri-sector.

 Cooperation - RBI

RBI WITH THE HELP OF VARIOUS COOPERATIVE AGENCIES

HELP IN DEVELOPMENT OF AGRI-SECTOR.