RBI Full Form: What is the Full Form of RBI
Full Form of RBI: Here in this post we are going to discuss about RBI, RBI Full Form, History, Structure of RBI, Functions, Objectives and many more.
RBI Full Form
RESERVE BANK OF INDIA
RBI full form is Reserve Bank of India. Reserve Bank of India (RBI) is the Central bank of India. RBI is fully owned by Government of India. Reserve Bank of India was established on 1st of April 1935 and it is governed according to Reserve Bank of India Act, 1934. The head office of RBI is situated in Mumbai.
Reserve Bank of India also known as the Central bank or Banker’s bank. Reserve Bank of India regulates issue and supply of Indian currency.
History of RBI
1. Reserve Bank of India was established on 1st of April 1935
2. Roya Commission on Indian Currency and Finance suggested the establishment of Reserve Bank of India in 1926.
3. Till April 1947 Reserve Bank of India acted as Central Bank of Myanmar.
4. In 1950, Jawahar Lal Neharu passed Banking Companies Act, 1949 (Now called Banking Regulation Act)
5. In 1961 first time many financial institution s were nationalised my Government of India.
6. In 1969, 14 major commercial banks were nationalized by Prime Minister Indira Gandhi.
7. Further in 1980 six commercial banks were nationalized by Prime Minister Indira Gandhi.
8. In 1991 Indian currency faced a huge devaluation and lost 18% of their value related to Doller and to overcome this situation Indian Government established Private Banking Sector in India.
What is the Full Form of RBI
Structure of RBI
Central Board of Director
Principal Chief General Managers
Chief General Managers
Deputy General Managers
Assistant General Managers
Functions of Reserve Bank of India
Issue of Currency
- Only Reserve Bank of India can issue, supply, exchange and destroy currency note in India.
- RBI Governor Gives Guaranty to the holder of Indian Currency to returns the equal value of assets.
- Reserve Bank of India is the banker’s bank and other banks can deposit their money in RBI.
- RBI issue CRR, Repo Rate and Reverse Repo Rate.
Regulates Banking System
- RBI is the apex body to regulate Banking System in the country.
- RBI set Parameters, rules and regulations for commercial banks.
- Reserve Bank of India issue guidelines and circular for banking Institutions.
- One of the most important functions of RBI is Supervision of Commercial, Non-commercial banks, financial institutions.
- Organize internal and annual Audit of Banks and financial institutions.
Regulate Foreign Exchange
- Foreign Exchange is governed my Foreign Exchange and management Act, 1999.
- RBI facilitates external trade and promotes development of forex in Indian market.
- Foreign Exchange rates show the relationship in demand and supply of Foreign Exchange.
Objectives of RBI
The main objective of Reserve Bank of India to create, control and regulate monetary policy in India. Reserve Bank of India works for securing monetary stability of Indian economy, strength and empower the bank, make banking system more flexible and transparent.
RBI manages the reserve and uses it for the sustainable growth of the country. Reserve Bank of India make new rules and regulation to protect the customers right and their money.
RBI is the Central Bank of India and its control all the commercial bank which operate in in India. Reserve Bank of India (RBI) is a very important topic for all of us especially for students who are you preparing for competitive exams.
That’s why in this post we discussed about the RBI Full Form, functions of RBI, objectives of RBI and history about it.
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