3rd SM
Reserve bank of INDIA :
• Central banking concept was introduced by prof.
Decock.
• Every country has a central bank which play the
vital note to regulate the money market of the
concerned country.
• RBI is called central bank in our Country .
• RBI is the apex body of Indian money market and
also the regulatory body of money market.
• The head of the RBI is called Governor.
Rbi is called:
1. Central Bank
2. Bankers Bank
3. Lender of last Resort
4. Clearing house
5. Controller of the foreign reserve
History of rbi :
• RBI was set up under 2nd schedule act, 1934 and RBI started
its operation from 1st April,1935.
• RBI was established on the recommendation of Hilton Young
Commission 1926.
• Initial capital of RBI was Rs 5crore(5lakh X 100 shares)
• RBI was nationalized on 1st January,1949.
• Head quarter of RBI is MUMBAI since 1937 but before 1937
RBI head quarter was located in CALCUTTA.
• Financial year of RBI is July to June
• The emblem of RBI is Tiger in front of plam tree
• Total no of member in RBI are 21
✓ 1 Governor – Shri Shaktikanta Das
✓ 4 Deputy Governor—
1. Shri Mahesh Kumar Jain
2. DR.M.D.Patra
3. Shri M.Rajeshwar Rao
4. Shri T.Rabi.Sankar
✓ 2 persons official from the ministry of finance
✓ 10 nominated Director
✓ 4 nominated Director by the central gov to represent
the four local boards with the headquarters at
MUMBAI,KOLKATA,CHENNAI &DELHI.
• RBI Governor appointed by the Prime minister of India.
❖ Governors list :
First Governor of RBI was Sir Osborone Smith(O.A.Smith)
[1935-1937]
First INDIAN Governor of RBI was – C.D.Deshmuk [1943-
1949]
2nd Governor of RBI was Sir James Taylor [1937-1943]
DR.MANMAHAN SINGH was RBI Governor during [1982-
1985]—15th.
At present 25th Governor of RBI is Mr.Shakti.Kanta.Das
[12Dec,2018 onwards]
Functions of rbi
Traditional Modern
1. Issue of currency : Right to 1. RBI provide agricultural
issu one rupee note and loon to the agricultural
metalic coins are under sector.
Ministry of
Finance.(GOI)but other
paper currency note are
issued by RBI.
2. One rupee note bear the 2.In order to provide Loan in
signature of Secretary agricultural sector
Ministry of Finance [present ARDC(Agricultural Refinance
Secretary is Ajay Bhushan and Development
Pandey ] Corporation) was set up in
1963 .but in 12july,1982 it
was restructured and rename
as NABAR(National Bank of
Agriculture and Rural
Development).
3. The highest denomination 3.RBI provide security to the
of value at present is depositors.
RS2000 and Lowest 50 P.
4. 25paise was withdrawn by 4.In order to provide security to
RBI from 30th June,2011. the depositors DIC(Deposit
Insurance Corporation) was set
up in 1962.but in 15july,1978 it
was restructured and renamed
as DICGC(Deposit insurance
credit Guarantee Corporation).
5. RBI issued the currency at 5.RBI provide housing finance to
present under minimum the housing sector through the
Reserve system since1956, NHB(National Housing Bank)
but before 1956 RBI issued which was set up in 9th
.The currency under July,1988.It is the apex body of
proportional reserve housing finance institution both
system. and local and regional levels.
❖ Rbi and its subsidiaries : RBI has four fully subsidiaries
1. DICGS (Deposit Insurance and Credit Guarantee Corporation of
India).
2. BRBNMPL (Bharatiya Reserve Bank note Mudran Private
Limited)
3. REBIT (Reserve Bank Information Technology Private Limited)
4. IFTAS (Indian Finance Technology and Allied Service).
Dicgc : It was set up in 15th July,1978.DICGC was formed by merging
Deposit Insurance Corporation (DIC) and credit Guarantee Corporation
of India ltd(CGCI).
DICGC was established for providing insurance of deposits and
guaranteeing of credit facilities. At present DICGS insures each
depositors a register insured bank upto a maximum of Rs1lakh for all
bank deposits, such as saving, fixed, current, recurring deposits.
Now maximum deposits amount insured by the DICGC Rs5
lakh(principle + interest).
DICGC pays --- 1.If a bank goes into liquidation
2. If a bank is reconstructed or amalgamated/merged with another
bank.
BRBNMPL : It was established on 3rd feb,1995.it has been registered
as a private limited company under the companies act 1956.
To augment the production of bank notes in India to enable the RBI to
bridge the gap between the supply and demand for bank notice in the
country.
The company manage 2 presses one of Mysore in Karnataka and the
other at Salboni in WB.
Apart from this ,RBI has two more printing press both owned by
Government of India Nasik(MH) and Dewas(MP).
Coins are minted in four mints owned by GOI.
Mumbai, Hyderabad, Kolkata, Noida.
REBIT : ESTD-2016
It deliver and manage it projects of RBI, Assist RBI in performing risk-
based Supervision of regulated entities, Safeguard RBI assets by
detecting and responding to cyber threats.
Iftas : Estd—1st April,2016
It mandated to design, deploy e support it-related Services to the RBI
and all Banks and Financial Institutions in the country.
The IFTAS has taken over the Indian Financial Network(INFINET),
Structured Financial Messaging System(SFMS) and the Indian Banking
Community Cloud(IBCC), from the Institute for Development and
Research in Banking Technology(IDRBT).
