First central bank of world was started by the Royal commissions on the recommendation of Hilton-Young Commission in 1926. Main purpose to started central banks was for the control of credit and currency from the Government and augment banking facilities throughout the country. In 1934, there also comes a act RBI act 1934 which declared to set a central bank in India and India’s only central bank ‘Reserve Bank of India’ came into existence on 1st April,1935 and it was initially started as a private share holders bank.
Here, we are going to discuss about the important point related to RBI which could be asked in RBI Grade B officers’ exam or in any other competitive exams.
Points to remember:
- Started with total share capital of 5 capital with 100 shareholders equally paid.
- Can print currency in 15 languages.
- Initially, Head-office was in Kolkata. Later, it shifted to Shahid Bhagat Singh Marg, Mumbai in 1937.
- There are below type of persons in Board of directors’ team of RBI (Including 1 Governor, 4 Deputy Governor, 4 Non Official directors nominated by the Central Government, 10 Non Official directors Nominated by the Reserve Bank of India and one representative from Central Government).
- It is compulsory for Board of Directors to hold 6 meetings per year and at least one meeting per quarter.
- Before issuing currency notes, RBI has to check its minimum reserve which is set by the ‘RBI minimum reserve act, 1957’. According to this act, there should be 200 Cr reserves which should be like this (115 Cr in Gold and 85 Cr in Foreign Securities).
- Under the supervision of Indira Gandhi Government, RBI nationalized 14 commercial banks in 1969.
- Regional Rural Banks started working in 1975.
- Process to strengthen Non Nanking financial Companies (NBFC) get started by Regulation in 1997.
- In 2004, RTGS (Real Time Gross Settlement) launched.
- It is member of the ACU (Asia Clearing Union) and IMF (International Monetary Fund).
- RBI also served as the Central Bank to Pakistan after Partition in 1947. It served only for 1 year; because after that Sate Bank of Pakistan started its operations.
Important regarding governors of Reserve Bank of India:
- Till now (Feb-2015), RBI has been headed by the 23 Governors.
- Office was inaugurated by the British Sir Osborne Smith. While, C.D Deshmukh is considered as the First Indian Governor of RBI.
- Manmohan Singh was 15th Governor of RBI (1982-85) who later became 13th Prime minister.
- Longest Tenure for RBI Governor hold by the C.D. Deshmukh who hold for 5 years 323 days. (1943-49).
- Shortest Tenure was hold by the Amitav Gosh (1985) only for 20 days.