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Posted 02 Apr 2024

2 min read

  • Brief History of RBI 
    • Royal Commission on Indian Currency, 1926 (Hilton Young Commission) recommended establishment of RBI, which was reiterated by Indian Central Banking Enquiry Committee, 1931.
    • RBI was established in 1935, under Reserve Bank of India Act, 1934 with Sir Osborne Smith as its first Governor.
    • It was nationalised in 1949.

 

  • Organisational Structure
    • Governed by a Central Board of Directors headed by Governor and four Deputy-Governors, appointed by Central Government.
    • Governor and Deputy Governor shall hold office for such term not exceeding five years as Central Government may fix when appointing them, and shall be eligible for re-appointment.

 

  • Functions of RBI
    • Monetary Authority to formulate, implement and monitor monetary policy to maintain price stability.
    • Regulator and supervisor of financial system to maintain public confidence.
    • Issuer of currency to supply currency notes and coins.
    • Regulator and Supervisor of Payment and Settlement Systems.
    • Banker to Government and Banks.

 

  • Key Achievements 
    • Gross Non-Performing Assets of public sector banks reduced to 3% (2023) from 11.25% (2018).
    • Size of RBI's balance sheet stands around Rs 63 lakh crore (2023). 
    • Foreign exchange Reserve of bank currently stands around $642 Billion.
  • Tags :
  • RBI
  • Functions of RBI
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