The Indian banking system is one of the largest and most extensively accessed sectors in the country. Apart from serving as the backbone of the economy, the system is also responsible for ensuring transparency in the monetary transactions and implementation of various financial reforms. The banking system is governed by an apex body called the Reserve Bank of India which is responsible for governing, managing and monitoring the functioning of the Indian banking system.
Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Here is everything you must know about the Reserve Bank of India:
The Reserve Bank of India is the central bank that on a broader note monitors and governs the complete financial system. Established in the year 1935, this apex body was recommended by the Hilton-Young commission and works under the Reserve Bank of India Act, 1934.
The Reserve Bank of India serves several objectives as stated in its Preamble. They are:
To keep pace with the economic changes and challenges by optimizing and modernizing the monetary policy.
The RBI is under complete ownership and operation of the government of India and is managed by a 21-member central board of directors. These board members are appointed under the Reserve Bank of India Act by the government of India. The RBI has its headquarters in Mumbai since 1937 and operates through a network of 19 regional offices and 9 sub-offices. Mr. Shaktikanta Das is the current governor of RBI.
The Reserve Bank of India follows a strict hierarchical structure which is headed by the Governor along with a team of four deputy governors. The hierarchy is as follows:
PRINCIPAL CHIEF GENERAL MANAGERS
CHIEF GENERAL MANAGERS
DEPUTY GENERAL MANAGERS
ASSISTANT GENERAL MANAGERS
The central board of directors is appointed by the government of India. It comprises of:
Official Directors: A governor along with a team of 4 Deputy Governors are appointed for a stint of 4 years
Non-official Directors: Two government officials along with 10 Directors from diversified fields are appointed
See Also: Reserve Bank of India (RBI)
The Reserve Bank of India performs several functions across different levels. The major functions of the Reserve Bank of India are:
As the RBI is the supreme monetary authority in the country, it is responsible for:
Formulation and implementation of the National Monetary Policy.
Maintenance of stability in price across various sectors while keeping up with the growth objective.
Being the apex financial body in the country, the Reserve Bank of India also performs the supervisory and regulatory functions:
See Also: Monetary Policy of Reserve Bank of India
4. Regulator and supervisor of payment and settlement act.
5. The Reserve Bank of India also serves as the keeper of payment and settlement act, 2007 and regulates the payment systems across the nation.
6. RBI ensures the effectiveness and transparency of the payment system across the country.
You May Also Watch
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.