Recommend by Hilton young commission. 20 Members (Directors), Governor & 4 Deputy Governor, one member recommended by Minister of Financial & 10 Directors recommend by Central Government & Four Directors recommend by Central Government at Four Headquarters at Kolkata, Delhi, and Mumbai & Chennai. Governor of Reserve Bank of India is Shaktikanta Das (2021)
Table of Contents
Functions of the Reserve Bank of India
Bank of Issue
Banker to government
Controller of Credit
Separate of issue department for print currency notes.
Any coins, notes in any denomination it can print, sole authority.
₹4,669,426 crore (US$620 billion) (FY-2020 -2021)
According to Business Standard Report, 705.6 tonnes, as of June 30, 2021.
Transact government business transactions, in behalf of government.
Adviser, agent government banker.
It helps both governments C/ S.
Also help to commercial banks at the time of cries.
Last resort of the Government
Every bank need to get license for every branch.
RBI can called bank license at anytime.
Can interrogate commercial bank accounts.
Has the power to tell other banks to not give or lend money to particular group.
Functions of Reserve Bank of India (RBI)
Agent & Adviser of Government
Accept public debt behalf of government as an agent.
Provide T-bills, securities.
Act as financial advices in all financial matters.
Functions as national clearing house
Twice a day, Cheques clearing in banks.
Banks can settle their interbank claims.
RBI can lend money to commercial banks à through genuine trade bills which are usually available at repo rate / MSF.
Custodian of foreign Reserves
It acts as India’s reserve for international currencies.
$286 b foresees reserves.
It watches the movement of market though ensure order and these is no volatility.
It takes up operation to stabilize the rate of Indian rupee in the market.
Granting license to banks.
Inspect the accounts of commercial banks.
Implementation of insurance deposit scheme.
On site & off site verification.
Whole control of operation under bank regulating act 1949 & RBI act 1934.