Role and Functions of Reserve Bank Of India (RBI)
Reserve Bank of India (RBI) is the central bank of India entrusted with a multidimensional role which includes implementation of monetary policy and maintaining monetary stability in the country. RBI was established on 1st April 1935 under the Reserve Bank of India Act, 1934. RBI was set up after the recommendations of Hilton young Commission which had submitted its report in the year 1926. Later on, in 1931 the Indian Central banking enquiry committee had also recommended for the establishment of the central bank in India. Initially, Reserve Bank of India was established as a private shareholders bank, but it was nationalized after independence in the year 1949 through the Reserve Bank (Transfer of public ownership) act, 1948. Functions of RBI Primary or Traditional Functions of RBI NOTE ISSUING AUTHORITY BANKER TO THE GOVERNMENT BANKER’S BANK LENDER OF THE LAST RESORT CREDIT CONTROL CUSTODIAN OF FOREIGN EXCHANGE RESERVE COLLECTION OF DATA AND PUBLICATION NOTE ISSUING AUTHORITY