Essay on Reserve Bank of India

Hi I am interested in having the information about the Reserve Bank of India (RBI) as well as the details of the organization structure of RBI?

[Rajkumar Agarwal]

The Reserve Bank of India (RBI) is the national bank of our nation. It was built up on April 1, 1935 as per the arrangements of the Reserve Bank of India Act, 1934, in view of the proposals of the Royal Commission on Indian Currency and Finance (Hilton Young Commission) in 1926. The Central Office of the RBI, which was then situated in Calcutta, was for all time moved to Mumbai in 1937.

On foundation, the RBI was given over the capacity of issuing money by the Government of India and the influence of credit control by the then Imperial Bank of India. Be that as it may, the RBI is currently completely claimed by the Government of India post-nationalization in 1949.

Essential Functions of RBI

The introduction of the Reserve Bank of India Act, 1934 states that the goals of the RBI are "to control the issue of certified receipts and the keeping of stores with a view to securing money related strength in India and for the most part to work the cash and credit arrangement of the nation further bolstering its good fortune.

In the first place, the RBI plays out the capacity of directing the issue of certified receipts (the RBI additionally trades or crushes cash and coins not fit for dissemination).

Second, the RBI keeps saves with a specific end goal to keep up fiscal solidness in India;

Third, the RBI must work the money and credit arrangement of India further bolstering its good fortune.

Organzation

Organisationally, the Reserve Bank works through different offices. They are:

1. Issue Department:

Its principle capacity is to issue and disperse the paper money.

2. Managing an account Department:

This division (an) arrangements with the administration exchanges, oversees open obligation and organizes the exchange of government assets ; (b) keeps up the money stores of the planned banks, gives monetary settlement to the banks and capacities as a clearing house.

3. Division of Banking Development:

It goes for extending managing an account offices in unbanked and provincial territories.

4. Division of Banking Operations:

Its capacity is to oversee, manage and control the working of the keeping money establishments in the nation. It stipends licenses for opening new banks or the new branches of the current banks.

5. Horticultural Credit Department:

It manages the issues of agrarian credit and gives offices of rustic credit to state governments and state cooperatives.

6. Modern Finance Department:

Its fundamental target is to give monetary help to the little and medium scale businesses.

7. Non-Banking Companies Department:

It oversees the exercises of non-keeping money organizations and budgetary foundations in the nation

8. Trade Control Department:

It leads the matter of offer and buy of remote trade.

9. Lawful Department:

It gives counsel to different offices on legitimate issues. It additionally gives legitimate guidance on the usage of managing an account laws in the nation.

10. Division of Research and Statistics:

The goal of this office is (a) to direct research on issues identifying with cash, credit, back, generation, and so forth., (b) to gather vital measurements identifying with different parts of the economy; and (c) distribute these insights.

11. Bureau of Planning and Reorganization:

It manages the definition of new plans or reorganisa*tion of existing strategies for making them more viable.

12. Monetary Department:

It is worried with confining legitimate managing an account approaches for better execution of financial strategies of the administration.

13. Investigation Department:

It embraces the capacity of reviewing different workplaces of the business banks.

14. Branch of Accounts and Expenditure:

It keeps legitimate records of all receipts and uses of the Reserve Bank.

15. RBI Services Board:

It manages the determination of new representatives, for various posts in the Reserve Bank.

16. Bureau of Supervision:

Another division, i.e., Department of Supervision, was set up on December 22, 1993 for the supervision of business banks.