Role of Reserve Bank of India (RBI) - Banker’s B

Role of Reserve Bank of India (RBI) - Banker’s Bank

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. Since its inception, it has been headquartered in Mumbai. Through originally privately owned RBI has been fully owned by the government of India since nationalization in 1949.

RBI is governed by 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

• Monetary Authority
• Formulates, implements and monitors the monetary policy.
• Objectives : maintaining price stability and ensuring adequate flow of credit to productive sectors
• Regular and supervisor of the financial system

                        Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.

                       Objective: Maintain public confidence in the system, protect depositors interest and provide cost-effective banking services to the public. The Banking Ombudsman scheme has been formulated by the reserve bank of India (RBI) for effective redressal of complaints by bank customers