Reserve Bank of India is the Central Bank of India established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
Governance
It is governed by a central board of directors appointed by the Government of India according to the Reserve Bank of India Act. The Governor and four Deputy Governors are appointed for a period of four years.
Non-Official Directors include ten directors appointed from various fields and four other directors, one each from four local boards.
Main Functions
Monetary Authority: It formulates, implements, and monitors the monetary policy.
Regulator and Supervisor of the Financial System: Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
Manager of Foreign Exchange: Manages the Foreign Exchange Management Act, 1999 to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of Currency: Issues and exchanges or destroys currency and coins not fit for circulation.
Developmental Role: Performs a wide range of promotional functions to support national objectives.
Regulator and Supervisor of Payment and Settlement Systems: Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
Banker to Banks: maintains banking accounts of all scheduled banks.
