Full Form of RBI

Full Form of RBI – Reserve Bank of India

The full form of RBI is the Reserve Bank of India. The RBI is the central bank of the country established in the year 1935 under the reserve bank (Transfer to Public Ownership) Act, 1948, responsible for regulating the supply of the currency in the economy, its credit system and creating the financial stability in the country by using its monetary policies.

History of RBI

  • The reserve bank of India was established in the year 1935 and is also called the nation’s Central bank. Before the establishment of the reserve bank of India, all of the functions as a central bank of the country were being performed by the imperial bank of India, which was established in the year 1921.
  • In the year 1926, the royal commission on the Indian currency and finance gave its recommendation for the purpose of creating the central bank for India so that control of the currency and the credit can be separated from the government and banking facilities can be augmented in the whole of the country.
  • After this recommendation and to give its effect, a bill was introduced in the legislative assembly, but the same was withdrawn after some time as there was disagreement among different persons. However, in 1933, the fresh bill was introduced after a recommendation through the white paper on the Indian constitutional reforms. This bill was then passed in 1934 after receiving the governor-general’s assent, and the reserve bank began its operation on April 01, 1935.
  • After few years, in the year reserve bank was nationalized by India’s government under the reserve bank act, 1948, and RBI was taken over from the private shareholders by paying an appropriate amount of the compensation to them. Thus, India’s nationalization of the reserve bank took place in the year 1949, which started working as the government-owned bank from January 1, 1949. Presently, the head office of the reserve bank of India is located in Mumbai, Maharashtra.
Full Form of RBI

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Objectives of RBI

The following are the objectives of the Reserve Bank of India:

Functions of RBI

The following are the main functions of the Reserve Bank of India:

RBI FUnctions

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Structure of RBI

The Reserve Bank of India is managed by the central board of directors, and it comprises of the official and non-official directors. The central board of directors is appointed by the government of India for the term of the four years. The official director includes the governor and the deputy governors. Also, there are four other directors in the RBI appointed from the local boards. Apart from the post of the governor and the deputy governor, another post in the RBI includes the Principle chief general manager, the Chief General Managers, the General Managers, the Deputy General Managers, the Assistant General Managers, the Managers, the Assistant Managers, and the other support staff.

Conclusion

RBI is the abbreviation used for the Reserve Bank of India. As the name implies, It is the central bank of India which began its operation on April 01, 1935. The primary objective of the Reserve bank of India is top regulates the different banking functions in the country with the focus on regulating the currency flow and credit system in the economy and conducting consolidated supervision of the financial sector of the country. It is managed by the central board of directors, which comprises of the official and non-official directors.

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