2.  It was established on 1 April 1935 during British Raj in
accordance with the provisions of Reserve Bank of India Act
1935.
 1913-Chamber lane commission suggest a central bank for
India
 1926-Royal Commission/ Hilton Young Commission again
suggested a central Bank for India.
 It began according to the guidelines laid down by Dr.
Ambedkar . He presented guidelines, working style and
outlook in from of Hilton Commission.
 1 Jan 1949-Nationalization of RBI under public ownership act
(1948) as government acquired private share holding.
 It was established on 1 April 1935 with a capital of 5 crore.
This capital was divided into shares equity of Rs. 100 each. In
the beginning, the ownership of almost all the share was with
a non government share holders.

3.  RBI in India is a Central Banking Institution, which controls
the MONETARY POLICY of Indian Rupee.
 MONETARY POLICY-Monetary Policy is the process by which
the government, central bank or Monetary authority of a
country controls-
(i) The Supply of Money
(ii) Availability of Money
(iii) Cost of Money or Rate of Interest to attain a set of
objectives oriented towards growth and stability of the
economy.
 Monetary Policy rests on the relationship between the
rates of interest in an economy, that is the price at which
money can be borrowed.
 It is a member bank of ASIAN CLEARING UNION

4.  The general superintendence and direction of RBI is entrusted with 21
members-
 Central Board of Directors-
 Governor
 Four Deputy Governor
(i) 1 Zone- RBI owners (RBI employers)-2 persons
(ii) CMD of Any Commercial Bank
(iii) Any Economist of India
 Two finance Ministry Representatives
 10 government nominated directors to represent important element
from India’s Economy.
 Four Directors to represent local board headquarters at Mumbai, Delhi,
Kolkata and Chennai
 Each of the local board consists of 5 members who represent regional
interests as well as interest of co-operative & indigenous bank.

5.  Monetary Authority
 Issuer of Currency (Issue Notes)
 Banker’s to Bank (Banker’s Bank)
 Manager to foreign exchange (Forex)
 Banker and & debt Manager to government
 Regulator and Supervisor of the payment &
settlement system
 Development Role
 Regulator of the banking System

6.  Deposit Insurance and credit guarantee
Corporation (DICGC)
 Bhartiya Reserve Bank Note Mudran Private
Limited
 National Bank For Agriculture and Rural
Development (NABARD)
NABARD is partially owned