RBI –

Reserve Bank
of India
 What is RBI?Establishment of
Reserve Bank of India
• The Reserve Bank of India (RBI) is India’s central bank, also known as the banker’s bank.

The RBI controls the monetary and other banking policies of the Indian government. The
Reserve Bank of India (RBI) was established on April 1, 1935, in accordance with the Reserve
Bank of India Act, 1934. The Reserve Bank is permanently situated in Mumbai since 1937.
The Reserve Bank is fully owned and operated by the Government of India.
• The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank
as:
• Regulating the issue of Banknotes
• Securing monetary stability in India
• Modernising the monetary policy framework to meet economic challenges
• The Reserve Bank’s operations are governed by a central board of directors, RBI is on the
whole operated with a 21-member central board of directors appointed by the Government of
India in accordance with the Reserve Bank of India Act.
 Organisation Structure

• The
Central board of directors
comprise of:
• Official
Directors – The governor
who is appointed/nominated for a
period of four years along with
four Deputy Governors
• Non-OfficialDirectors – Ten
Directors from various fields and
two government Official
Banking Structure
 News about monetary policy 2021-22
• Reserve Bank of India (RBI) Governor Shaktikanta Das announced the policy decision today, at the end of
the scheduled review of the Monetary Policy Committee (MPC) that began on Wednesday, June 2, as it
evaluates the economic impact amid the severity of the second wave of COVID-19. The Reserve Bank's
monetary policy unanimously voted to maintain the repo rates - the key interest rates at which the RBI
lends money to commercial banks - steady at four per cent. The reverse repo rate - the rate at which RBI
borrows money from banks, was also unchanged at 3.35 per cent. The central bank has maintained its
status quo on key policy rates for the sixth time in a row, continuing with the accommodative stance as
long as necessary to revive economic growth on a durable basis. The RBI targeted retail inflation at 5.1 per
cent in the current financial year 2021-22.
• The RBI Governor also announced the secondary market government securities acquisition programme - G-
SAP 2.0 of ₹ 1.2 lakh crore in the second quarter of the current fiscal year. The central bank also cut down
the gross domestic product (GDP) growth projection for the current fiscal from 10.5 per cent to 9.5 per
cent.
• This is the second bi-monthly monetary policy review for the financial year 2021-22, at a time when the
economy witnessed a record contraction of 7.3 per cent for the previous fiscal 2021, recording its worst-
ever performance in over four decades. 
•  Even as India has recorded around 2.8 crore COVID-19 cases since last year, and over 3 lakh casualties,
some analysts believe that the worse may be over as states have begun cautious unlocking, amid initial
signs that the peak of the second covid curve may have subsided.