What is the Reserve Bank of India?
The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders. Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949.
A Central Bank is an independent apex monetary authority which regulates banks and provides important financial services like storing of foreign exchange reserves, control of inflation, monetary policy report. A Central Bank is known by different names in different countries. The functions of a Central Bank vary from country to country and are autonomous or quasi-autonomous body and perform or through another agency vital monetary functions in the country.
Some interesting facts about the RBI are:
It was formed on April 1, 1935 as a private entity, but is a government entity now. Nationalisation of the central bank happened in 1949.
The financial year of RBI is from 1 July to 30 June.
The RBI is responsible only for printing currency notes. Minting of coins is done by the Government of India.
Find out about the activities done by the RBI.