Rbi Headquarter in Mumbai

8/8/2019 Rbi Headquarter in Mumbai

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Headquarters - Maharashtra

Established- 1 April 1935

Governer- Duvvuri Subbarao

Central bank of India

Currency- Indian Rupee

ISO 4217 CodeINR

Reserves - US$287.37 billion (2009)

Base borrowing rate- 5.2%

Base deposit rate- 9.5%

Website- rbi.org.in

RBI is the apex banking body in India


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TheReserve Bank of India (RBI, Hindi: ) is the central banking systemofIndia and controls themonetary policy of the

rupee as well as US$287.37 billion (2009) ofcurrency reserves. The institution was establishedon 1 April 1935 during the British-Raj in accordancewith the provisions of the Reserve Bank ofIndia

Act, 1934.

and plays an important part in thedevelopment strategy of the government. It is amember bank of the Asian Clearing Union.


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History

1935 - 1950

The central bank was founded in 1935 to respond toeconomictroubles after thefirst world war. The Reserve Bank ofIndia

was set up on the recommendations of theHilton YoungCommission..The Central Officeof the Reserve Bank was initially establishedin Kolkata, Bengal, but was permanently moved to Mumbai in1937.Though originally set up as a shareholders bank, the RBI hasbeen fully owned by the government ofIndia since itsnationalization in 1949

1950 1960

theIndian government developed a centrally planned economic

policy and focused on the agricultural sector. Theadministration nationalized commercial banks and established,based on theBanking Companies Act, 1949 (later calledBanking Regulation Act) a central bank regulation as part of theRBI. Furthermore, the central bank was ordered to support theeconomic plan with loans.


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1960 - 1969

As a result of bank crashes, the reserve bank was requested toestablish and monitor a deposit insurance system. It shouldrestore the trust in the national bank system and was initializedon 7 December 1961.

19691985

Between 1969 and 1980 theIndian government nationalized 21banks. The central bank became the central player and increasedits policies for a lot of tasks like interests, reserve ratio andvisible deposits.

The branch was forced toestablish two new offices in the countryfor every newly established office in a town. Theoil crises in 1973resulted in increasing inflation, and the RBI restricted monetarypolicy to reduce theeffects.

19851991

TheDiscount and Finance House of India began its operations onthemonetary market in April 1988; theNational Housing Bank,founded in July 1988, was forced to invest in the property marketand a new financial law improved theversatility of direct depositby more security measures and liberalisation.


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19912000

The national economy came down in July 1991 and theIndian rupee was devalued. The currency lost 18%

relative to the US dollar, and theNarsimahmamCommittee advised restructuring thefinancial sector bya temporal reduced reserve ratio as well as thestatutory liquidity ratio. New guidelines were publishedin 1993 toestablish a private banking sector. Thisturning point should reinforce themarket and was often

called neo-liberal.

The central bank deregulated bankinterests and some sectors of thefinancial market likethe trust and property markets. This first phase was asuccess and the central government forced a diversityliberalisation to diversify owner structures in 1998.

TheNational Stock ExchangeofIndia took the tradeonin June 1994 and the RBI allowed nationalized banks inJuly to interact with the capital market to reinforcetheir capital base. The central bank founded asubsidiary companytheBharatiya Reserve Bank NoteMudran Limitedin February 1995 to produce banknotes


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since 2000

TheForeign Exchange Management Act from 1999came intoforce in June 2000. It should improve

theforeign exchangemarket, internationalinvestments in India and transactions.

The RBI promoted the development of thefinancial market in the last years, allowed onlinebanking in 2001 and established a new paymentsystem in 2004 - 2005 (National Electronic FundTransfer).

TheSecurity Printing & Minting Corporation ofIndia Ltd., a merger of nine institutions, was

founded in 2006 and produces banknotes andcoins.[19]

The national economy's growth rate came down to5,8% in the last quarter of 2008 - 2009[20] and thecentral bank promotes theeconomic development


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Central Board of Directors

Name Position

Duvvuri Subbarao Governor

Shyamala Gopinath Deputy Governor

Usha Thorat Deputy Governor

K. C. Chakrabarty Deputy Governor

Subir Gokarn Deputy Governor

Y. H. Malegam Regional of the West

Suresh D. Tendulkar Regional of the East

U. R. Rao Regional of the North

Lakshmi Chand Regional of the South

H. P. Ranina Lawyer Supreme Court of India

Ashok S. Ganguly Chairman Firstsource Solutions Limited

Azim Premji Chairman WIPRO Limited

Kumar Mangalam Birla Chairman Aditya Birla Group of CompaniesShashi Rajagopalan Advisor

Suresh Neotia former Chairman Ambuja Cement Co.

A. Vaidyanathan Economist, Professor Madras Inst.

Man Mohan Sharma Chemist, Professor Mumbai University

D. Jayavarthanavelu Chairman Lakshmi Machine Works Limited

Sanjay Labroo CEO Asahi India Glass Ltd.


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Governors

The central bank had 22 governors since 04.01.1935. Theregular termofoffice is a four years period, appointed

by the national administration. Supportive bodies

The Reserve Bank ofIndia has four regionalrepresantations: North in New Delhi, South in Chennai,East in Kolkata and West in Mumbai. The representations

areformed by fivemembers, appointed for four years bythe central government and serve - beside the adviceofthe Central Board of Directors - as forumfor regionalbanks and to deal with delegated tasks from the centralboard. The institution has 22 regional offices.

TheBoard of Financial Supervision (BFS), formed inNovember 1994, serves as a CCBD committee to controlthefinancial institutions. It has four members, appointedfor two years, and takes measures to strength the roleofstatutory auditors in thefinancial sector, externalmonitoring and internal controlling systems.


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Offices and branches

The Reserve Bank ofIndia has branch offices atmost state capitals and at a few major cities in

India[total of 18 places] - viz. Ahmedabad,Bangalore, Bhopal, Bhubaneswar, Chandigarh,Chennai, Delhi, Guwahati, Hyderabad, Jaipur,Jammu, Kanpur, Kolkata, Lucknow, Mumbai,

Nagpur, Patna, and Thiruvananthapuram. Besides ithas sub-offices at Dehradun, Gangtok, Kochi,Panaji, Raipur, Ranchi, Shimla and Srinagar.

The Bank has also two training colleges for its

officers, viz. Reserve Bank Staff College at Chennaiand Collegeof Agricultural Banking at Pune. Thereare alsofour Zonal Training Centres at Belapur,Chennai, Kolkata and New Delhi


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Main Functions

Monetary Authority

The Reserve Bank ofIndia is themain monetaryauthority of the country and beside that thecentral bank acts as the bank of the national andstate governments. It formulates, implements andmonitors themonetary policy as well as it has to

ensure an adequateflow of credit to productivesectors. Objectives aremaintaining price stabilityand ensuring adequateflow of credit to productivesectors. The national economy depends on the

public sector and the central bank promotes anexpensivemonetary policy to push the privatesector since thefinancial market reforms of the1990s.


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The institution is also the regulator and supervisorof thefinancial system and prescribes broadparameters of banking operations within which the

country's banking and financial systemfunctions.Objectives are tomaintain public confidence inthe system, protect depositors' interest andprovide cost-effective banking services to the

public. TheBanking Ombudsman Scheme has beenformulated by the Reserve Bank ofIndia (RBI) foreffective redressal of complaints by bankcustomers. The RBI controls themonetary supply,monitors economic indicators like the grossdomestic product and has Sexto decide the designof the rupee banknotes as well as coins


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Manager of exchange control

The central bank manages to reach the goals of theForeign Exchange Management Act, 1999. Objective: tofacilitateexternal trade and payment and promoteorderly development and maintenanceofforeignexchangemarket in India.

Issuer of currency

The bank issues and exchanges or destroys currency

and coins not fit for circulation.The Objectives aregiving the public adequate supply of currency of goodquality and to provide loans to commercial banks tomaintain or improve theGDP. The basic objectives ofRBI are to issue bank notes, tomaintain the currency

and credit systemof the country to utilize it in its bestadvantage, and tomaintain the reserves. RBImaintainstheeconomic structureof the country so that it canachieve theobjectiveof price stability as well aseconomic development, because both objectives are

diverse in themselves.


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Developmental role

The central bank has to perform a wide rangeofpromotional functions to support national objectivesand industries. The RBIfaces a lot of inter-sectoral and

local inflation-related problems. Someof this problemsare results of the dominant part of the public sector. Related functions

The RBI is also a banker to theGovernment andperforms merchant banking function for the central

and the state governments. It also acts as their banker.TheNational Housing Bank (NHB) was established in1988 to promote private real estate acquisition.Theinstitution maintains banking accounts of all scheduledbanks, too.There is now an international consensus about the needtofocus the tasks of a central bank upon centralbanking. RBI is far out of touch with such a principle,owing to the sprawling mandate described above. Therecent financial turmoil world-over, has however,vindicated the Reserve Bank's role in maintaining

financial stability inI

ndia.


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Rbi Headquarter in Mumbai

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