Full Form of RBI

Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Full Form of RBI – Reserve Bank of India

The full form of RBI is the Reserve Bank of India. The RBI is the country’s Central Bank, established in 1935 under the Reserve Bank (Transfer to Public Ownership) Act, 1948. It is responsible for regulating the currency supply in the economy and its credit system and creating financial stability in the country through its monetary policies.

History of RBI

  • The Reserve Bank of India was established in 1935 and is also called the nation’s Central bank. The Imperial Bank of India, established in 1921, performed all the functions of the country’s Central Bank before establishing the Reserve Bank of India.
  • In 1926, the royal commission on Indian currency and finance recommended creating the Central Bank for India to separate control of the currency and augment the credit from the government and banking facilities in the country.
  • After this recommendation and its effect, introduced a bill in the legislative assembly. Still, the same was withdrawn after some time as there was disagreement among different persons. However, in 1933, the new bill was introduced after a recommendation through the white paper on the Indian constitutional reforms. It then passed this bill in 1934 after receiving the governor-general’s permission. The Reserve Bank began its operation on April 01, 1935.
  • After a few years, the Reserve Bank was nationalized by India’s government under the Reserve Bank Act 1948. Then, it took over the RBI from the private shareholders by paying them appropriate compensation. Thus, India’s nationalization of the Reserve Bank took place in 1949, which started working as a government-owned bank on January 1, 1949. The Reserve Bank of India’s head office is in Mumbai, Maharashtra.
Full Form of RBI

You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Full Form of RBI (wallstreetmojo.com)

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series)

–>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​Financial Modeling & Valuation Course Bundle​ (25+ hours of video tutorials with step by step McDonald’s Financial Model). Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.

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

You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Full Form of RBI (wallstreetmojo.com)

Structure of RBI

The Central Board of Directors manages the Reserve Bank of India, comprising the official and non-official directors. The government of India appoints the Central Board of Directors for the term of four years. The official director includes the governor and the deputy governors. Also, appointed four other directors in the RBI from the local boards. Apart from the post of the governor and the deputy governor, other posts in the RBI include the Principal 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, India’s Central Bank began its operation on April 01, 1935. The primary objective of the Reserve bank of India is to top-regulate the different banking functions in the country, focusing on regulating the currency flow and credit system in the economy and conducting consolidated supervision of the country’s financial sector. The Central Board of Directors manages it, comprising the official and non-official directors.

Recommended Articles

This article is a guide to the Full Form of RBI, i.e. (Reserve Bank of India). Here, we discuss the history and functions of RBI with their objectives and structure. You may also have a look at the following articles: –

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *