Reserve Bank of India is a central bank of India handed with monetary stability, the management of currency and the supervision of the financial as well as the payments system.
The Reserve Bank of India (RBI) was set up on the basis of the recommendations of the Hilton Young Commission.
The Reserve Bank of India commenced operations on April 1, 1935. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank.
The main aim of bank was to:
- Regulate the issue of banknotes
- Maintain reserves for monetary stability in country
- To operate the credit and currency system of the country to its advantage.
Here are some interesting facts to know about RBI:
1. The financial year of RBI is from 1 July to 30 June.
2. K. J. Udeshi is the first woman to become the deputy governor of RBI. She was appointed in 2003.
3. RBI demonetized Rs 1000 and Rs 10000 banknotes, in January 1946. The higher denomination banknotes in Rs 1000, Rs 5000 and Rs 10000 were reintroduced in the year 1954, and these banknotes were again demonetized in January 1978.
4. The Government of India in consultation with the Reserve Bank of India decides the design of banknotes.
5. The highest denomination note ever printed was the Rs 10000 note in 1938 and again in 1954. These notes were demonetized in 1946 and again in 1978.
6. Based on the growth of economy, inflation rate, the replacement demand and reserve stock requirements by using statistical models/techniques, RBI estimates the demand for bank notes.
7. Other than India, RBI was also the central bank for two other countries (Pakistan and Burma)
8. Manmohan Singh is the only Prime Minister to have also served as the Governor of RBI.
9. The bank was initially located in Kolkata. IT was moved to Mumbai in 1937.
10. The bank was nationalized in 1949. It is now fully owned by Government of India