What is the full form of RBI?
The full form of RBI is the Reserve Bank of India. The RBI is the country’s central bank, established in 1935 under the provision of the Reserve Bank of India Act 1934. It is responsible for enforcing the availability of capital to the economy through monetary policies and the credit system and generating new stability and security for the nation. Though RBI was originally privately owned, since nationalisation in 1949, the RBI has been entirely owned by the Government of India.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
“to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”
Objectives of the RBI
The goals of the RBI are listed below:
- Supervising and conducting various financial sector projects comprising commercial banks, financial institutions and non-banking financial firms. Management of the currency crisis in the nation’s economy.
- Management of the reserve to ensure the economic development and monetary stability of the nation’s exchange value.
- Operating the currency of the nation and the currency system to its complete benefit.
- Keep uninfluenced by the nation’s elections since all decisions are made in an impartial way.
- To help in the anticipated growth phase of the nation’s infrastructure.
- Addressing the needs of the economy by modernizing the system for financial markets.
Structure of RBI
|Central Board of Directors
|Multiple (appointed by the Indian Government with a term of 4 years)
|4 (usually not more than 4)
|Principle Chief General Managers
|Chief General Managers
|Deputy General Managers
|Assistant General Managers
- It is accountable for the nation’s monetary policy execution and formulation.
- It controls and monitors the payment platform and its transactions.
- It conducts economic growth functions through the promotion of national banking, etc.