The Reserve Bank of India (RBI) is the central bank of India. It was established in 1935 under the Reserve Bank of India Act. The RBI controls monetary policy and currency reserves. It has the objectives of regulating bank notes, maintaining monetary stability, and operating the currency and credit system. The RBI performs key functions such as issuing currency, acting as a banker to the government and other banks, managing foreign exchange reserves, and formulating monetary policy through tools like interest rates and reserve requirements.

1. RESERVE BANK OF INDIA
BY : VARUN SHARMA
22MMBAOO2

2. CONTENTS
❖ INTRODUCTION
❖ HISTORY OF RBI
❖ OBJECTIVES OFRBI
❖ STRUCTURE OFRBI
❖ FUNCTIONS OFRBI
❖ CONCLUSION

3. INTRODUCTION
● The Reserve Bank Of India is the central banking institution
of India and controls the monetary policy of the rupee as well
as currency reserves.
● Established inApril 1935 under the Reserve Bank Of India
Act 1934
● Its head quarter is in Mumbai.
● Its present governor is Shri Shaktikanta Das

4. HISTORY OF RBI
● Its was set up on the recommendations of Hilton Young
Commission
● Initially it was located in kolkata
● It moved to Mumbai in 1937
● Initially it was privately owned
● Since 1949, the RBI is fully owned by the Governor of India
● Its first governor was Sir- OsborneA.Smith
● The first Indian Governor was Sir Chintaman D.Deshmukh

5. OBJECTIVES OF RBI
The Preamble to the Reserve Bank Of IndiaAct, 1934, under
which it was constituted, specifies its objectives as
“To regulate the issue of Bank notes and the keeping of reserves
with a view to securing monetary stability in India and generally to
operate the currency and credit system of the country to its
advantage”.

6. STRUCTURE OF RBI
❏ Central Board Of Directors
❏ Governor
❏ Deputy Governor
❏ Executive Directors
❏ Principal Chief General Manager
❏ Chief General Manager
❏ General Manager
❏ Deputy General Manager
❏ Assistant General Manager
❏ Manager
❏ Assistant Manager
❏ Support Staff

7. FUNCTIONS OF RBI
● Issuer of Currency
● Banker to Government
● Banker to Bank
● Role of RBI in inflation control
● Formulate Monetary Policy
● Manager of Foreign Reserve

8. ISSUER OF CURRENCY
❏ Design, printing and distribution.
❏ The bank issues and exchanges or destroys currency and coins not fit
for circulation.
❏ The objectives are giving the public adequate supply of currency of
good quality and to provide loans to commercial banks to maintain or
improve the GDP

9. BANKER TO THE GOVERNMENT
Banker to the Government: performs merchant banking function for
the central and the state governments; also acts as their banker
BANKER TO THE BANK
Banker to the Bank: maintains banking accounts of all scheduled banks

10. ROLE OF RBI IN INFLATION CONTROL
❏ Inflation arises when the demand increases and there is a shortage of
supply. There are two policies in the hands of the RBI.
❏ Monetary Policy : It includes the interest rates. When the bank increases
the interest rates than there is reduction in the borrowers and people try to
save more as the rate of interest has increased.
❏ Fiscal Policy: It is related to direct taxes and government spending. When
direct taxes increased and government spending increased than the
disposable Income of the people reduces and hence the demand reduces.

11. FORMULATE MONETARY POLICY
❏ Maintain price stability and ensuring adequate flow of credit in the
economy.
❏ It formulates, implements and monitors the monetary policy.
❏ Instruments of regulating monitory policy are basically of two
categories:
1. Quantitative measures
2. Qualitative measures

12. MANAGER OF FOREIGN EXCHANGE
❏ To facilitate external trade and payment
❏ It acts as a custodian and manages the Foreign Exchange Management
Act, (FEMA) 1999.
❏ RBI buys and sells foreign currency to maintain the exchange rate of
Indian Rupee v/s Foreign currencies like the US Dollar, Euro, Pound
and Japanese yen
❏ OBJECTIVE : TO FACILITATE EXTERNAL TRADE AND
PAYMENTAND PROMOTE ORDERL
Y DEVELOPMENTAND
MAINTENANCE OF FOREIGN EXCHANGE MARKET IN INDIA.

13. CONCLUSION
Hence after knowing all the facts and figures relating the Reserve Bank Of
India, it is plausible to conclude that RBI supports our nation’s economy in
a vital manner. Its policies and decisions, affect the value of the Indian
currency and we can also state that it is the backbone of Indian Economy.