KMC COLLEGE OF LAW,

TIRUPUR

ASSIGNMENT

SUBJECT : GENERAL PRINCIPLES OF ECONOMICS

SUBJECT CODE : FA1C

ASSIGNMENT TOPIC : CENTRAL BANK

ASSIGNMENT NUMBER : 01

NAME : N.PRAVEEN KUMAR

COURSE : 1ST YEAR B.A.LLB

DATE OF ISSSUE OF ASSIGNMENT : 23-11-2023

DATE OF SUBMISSION : 05-12-2023

SUBMITTED TO - PROF. KRISHNAN.R

SUBMITTED BY ,

NAME : N.PRAVEEN KUMAR

BATCH : 2023- 2028

COURSE : B.A.LLB

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 CENTRAL BANK

Table of Contents
CENTRAL BANK.................................................................................................................................2
Objective of the study:........................................................................................................................2
Introduction:........................................................................................................................................2
Review of literature:............................................................................................................................2
History of the study:............................................................................................................................3
Analysis of the study:..........................................................................................................................3
Conclusion:..........................................................................................................................................4
Bibliography:.......................................................................................................................................4
Webliography:.....................................................................................................................................4

Objective of the study:

The object of the study of below essay is to understand the what is central bank. This study
helps us to known the what is RBI. The Reserve Bank of India (RBI) is the central banking
institution in India responsible for regulating the country’s monetary policy and financial
system. It can be clearly studied by the below articles with references.

Introduction:
The Reserve Bank of India was established on April 1, 1935 in with Reserve Bank of India
Act,1934. The central office of Reserve Bank was established in Kolkata but permanently
moved to Mumbai in 1937. It is originally privately owned, since nationalization in 1949, the
Reserve Bank of India fully owned by the Government of India.

Review of literature:
In the literature, that is general recognition in that monetary policy affects the real economy
at least in the short run. However, there is no on that channel which monetary policy
influence the behavior of outputs and prices.

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In recent years monetary policy has been an issue extensive research particularly since
Bernanke’s seminal article in 1986 which provide alternative explanation of real and nominal
source price for explaining money income relationship.

A comprehensive literature review in this area would involve examining key academic
journals, books, and policy papers that contribute to these discussions. Researchers often use
a combination of theoretical frameworks, empirical analyses, and case studies to deepen our
understanding of central banking.

History of the study:

The RBI Act 1934 was passed and RBI launched in the operations from April 1,1935. The
head office of the RBI was in Calcutta and moved to Mumbai in 1937.

After the independence the government of India passed the Reserve Bank Act, 1948. From
January 1, 1949, RBI started as a government owned central bank. The Reserve Bank of India
was established on April 1, 1935. In 1949, the RBI was nationalized, and it became fully
owned by the Government of India. Over the years, the RBI has evolved to become the
central monetary authority in India, responsible for formulating and implementing monetary
policy.

In the early 1990s, India initiated economic reforms, liberalizing its economy. The RBI
played a key role in implementing financial sector reforms to strengthen the banking system.

The RBI has been actively involved in introducing various measures to promote financial
inclusion, enhance digital payments, and ensure the stability of the financial system.

Analysis of the study:

The Central Bank of India, founded in 1911, stands as one of the oldest and prominent
commercial banks in the country. It holds the distinction of being the first Indian-owned and
managed commercial bank. Operating under the majority ownership of the Government of
India, the bank has a widespread presence across the nation through its extensive network of
branches and ATMs. Offering a diverse array of financial services, including retail, corporate,
and agricultural banking, the institution plays a crucial role in the nation's economic
landscape. As part of its commitment to financial inclusion, the Central Bank of India
actively participates in initiatives to reach unbanked and underbanked populations.
Embracing technological advancements, the bank provides online and mobile banking

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services, contributing to the broader digital transformation in the banking sector. Governed
by the regulatory oversight of the Reserve Bank of India (RBI), the Central Bank of India
grapples with challenges typical to financial institutions, such as managing non-performing
assets and adapting to evolving technological landscapes. Keeping abreast of its latest reports
and developments is recommended for a comprehensive understanding of its current standing
and initiatives.

Conclusion:
In conclusion, the Central Bank of India holds a rich history as a pioneer in Indian-owned and
managed commercial banking. The Reserve Bank of India(RBI) plays an important role in
country’s financial and economic systems. The RBI contributes to maintaining price stability,
promoting economic growth, and the stability of the financial sector. RBI is also responsible
for regulating and controlling the monetary and financial system.

Bibliography:
(2018). In HIGHER SECONDARY FIRST YEAR,COMMERECE (p. 86-93). Tamil
NaduTextbook and Educational corporation.

(2019). In HIGHER SECONDARY SECOND YEAR, ECONOMICS (pp. 95-100). Tamil Nadu
Text Book and Educational Corporation.

Webliography:
UNACADEMY, RESERVE BANK OF INDIA, Available at:

https://unacademy.com/content/upsc/study-material/general-awareness/central-bank-of-india/
google. (2012, may 18). Retrieved from Reserve Bank of India:

https://rbi.org.in/scripts/PublicationsView.aspx?id=14235

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