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53-521: The Gandhi Series of banknotes are issued by the Reserve Bank of India (RBI) as the legal tender of Indian rupee . The series is so called because the obverse of the banknotes prominently display the portrait of Mahatma Gandhi . Since its introduction in 1996, this series replaced all Lion Capital Series banknotes issued before 1996. The Reserve Bank of India (RBI) introduced the series in 1996 with ₹10 and ₹500 banknotes. As of 10 November 2016,

106-534: A CCBD committee to control the financial institutions. It has four members, appointed for two years, and takes measures to strength the role of statutory auditors in the financial sector, external monitoring, and internal controlling systems. The Tarapore committee was set up by the Reserve Bank of India under the chairmanship of former RBI deputy governor S. S. Tarapore to "lay the road map" to capital account convertibility . The five-member committee recommended

159-599: A bank to carry out their financial transactions effectively and efficiently, governments also need a bank to carry out their financial transactions. The RBI serves this purpose for the Government of India (GoI). The RBI is also a banker to the government and performs merchant banking function for the central and the state governments. As a banker to the Government of India, the RBI maintains its accounts, receive payments into and make payments out of these accounts. The RBI also helps

212-513: A banker of scheduled commercial banks. It also works for overall economic growth of the country. The purposes for which the RBI has been established as India’s central bank has been spelt out in the preamble to the RBI Act: i) "to regulate the issue of banknotes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of

265-797: A former vice-president at National Securities Depository Limited , assumed charge as the first chief financial officer (CFO) of the Reserve Bank on 15 May 2018; she was given the rank of an executive director. The bank's current governor is Shaktikanta Das . There are currently four deputy governors Swaminathan J, M. Rajeshwar Rao, Michael Patra and T. Rabi Shankar. The RBI has four regional representations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. The representations are formed by five members, appointed for four years by

318-615: A monopoly of note issue. In the 1950s, the Indian government, under its first Prime Minister Jawaharlal Nehru , developed a centrally planned economic policy that focused on the agricultural sector. The administration nationalised commercial banks and established, based on the Banking Companies Act, 1949 (later called the Banking Regulation Act ), a central bank regulation as part of the RBI. Furthermore,

371-490: A post of a chief operating officer (COO), in the rank of deputy governor and wanted to re-allocate work between the five of them (four deputy governor and COO). Two of the four deputy governors are traditionally from RBI ranks and are selected from the bank's executive directors. One is nominated from among the chairpersons of public sector banks and the other is an economist. An Indian Administrative Service officer can also be appointed as deputy governor of RBI and later as

424-646: A subsidiary company—the Bharatiya Reserve Bank Note Mudran Private Limited —on 3 February 1995 to produce banknotes. The Foreign Exchange Management Act , 1999 came into force in June 2000. It should improve the item in 2004–2005 ( National Electronic Fund Transfer ). The Security Printing & Minting Corporation of India Ltd., a merger of nine institutions, was founded in 2006 and produces banknotes and coins. The national economy's growth rate came down to 5.8% in

477-447: A three-year time frame for complete convertibility by 1999–2000. On 8 December 2017, Surekha Marandi, executive director (ED) of Reserve Bank of India, said RBI will open an office in the north-eastern state of Arunachal Pradesh. BRBNM was established by RBI on 3 February 1995 to enable RBI to bridge the gap between maintain, demand and supply of Indian rupee notes in the country. Deposit Insurance and Credit Guarantee Corporation

530-592: Is India's central bank and regulatory body responsible for regulation of the Indian banking system. Owned by the Ministry of Finance of the Government of India , it is responsible for the control, issue and maintaining supply of the Indian rupee. It also manages the country's main payment systems and works to promote its economic development. The RBI, along with the Indian Banks' Association , established

583-716: Is currently focused on implementing norms. Payment and settlement systems play an important role in improving overall economic efficiency. The Payment and Settlement Systems Act of 2007 (PSS Act) gives the Reserve Bank oversight authority, including regulation and supervision, for the payment and settlement systems in the country. In this role, the RBI focuses on the development and functioning of safe, secure and efficient payment and settlement mechanisms. Two payment systems National Electronic Fund Transfer (NEFT) and Real-Time Gross Settlement ( RTGS ) allow individuals, companies and firms to transfer funds from one bank to another. These facilities can only be used for transferring money within

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636-562: Is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Asian Clearing Union Period : Bimonthly Settlement Payment Deadline : T+4 Eligibility : Any participant in net deficit Time of request : Before the end of a settlement period Amount : 20% of the average gross payments (ACU dollar/euro/yen accounts collectively) made by every eligible participant Rate : linear interpolation of Chicago Mercantile Exchange: CME SOFR one month and three month for US Dollar,

689-765: The Hilton Young Commission . Eventually, the Central Legislative Assembly passed these guidelines as the RBI Act 1934. India was the first colony to have its own central bank. The original choice for the seal of RBI was the East India Company Double Mohur , with the sketch of the Lion and Palm Tree. However, it was decided to replace the lion with the tiger, the national animal of India. The Preamble of

742-573: The National Payments Corporation of India to promote and regulate the payment and settlement systems in India. Bharatiya Reserve Bank Note Mudran (BRBNM) is a specialised division of RBI through which it prints and mints Indian currency notes (INR) in two of its currency printing presses located in Mysore (Karnataka; Southern India) and Salboni (West Bengal; Eastern India). Deposit Insurance and Credit Guarantee Corporation

795-487: The Reserve Bank of India Act . Though privately owned initially, it was nationalised in 1949 and since then fully owned by the Ministry of Finance , Government of India (GoI). The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the First World War . The bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as

848-827: The Ahmedabad branch was established in 1950. It has 3 training colleges for its officers, viz. Reserve Bank Staff College Chennai , Reserve Bank of India Academy Mumbai , and Reserve Bank of India College of Agricultural Banking Pune . There are three autonomous institutions run by RBI namely National Institute of Bank Management (NIBM), Indira Gandhi Institute of Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT). There are also four zonal training centres at Mumbai, Chennai, Kolkata, and New Delhi. The Board of Financial Supervision (BFS), formed in November 1994, serves as

901-743: The Audit Sub-Committee also aims at upgrading the quality of the statutory audit and internal audit functions in banks and financial institutions. The audit sub-committee includes deputy governor as the chairman and two directors of the Central Board as members. The BFS oversees the functioning of the Department of Banking Supervision (DBS), the Department of Non-Banking Supervision (DNBS) and the Financial Institutions Division (FID) and gives directions on

954-581: The EURIBOR two month for Euro, two month LIBOR declared by the ICE for Japanese Yen Benefits : AMU : Asian Monetary Units (viz. ACU dollar, ACU euro, and ACU yen), The AMUs are denominated as ACU dollar, ACU euro, and ACU yen which are equivalent in value to 1 USD, 1 Euro, and 1 JPY, respectively. The SDR cross-rates which are quoted by the IMF on a daily basis are applied as a reference rate. Currently 2024,

1007-509: The GoI to raise money from the public via issuing bonds and government-approved securities. In September 2019, a decision at RBI directors meet was taken to change the RBI financial accounting year to March–April to align itself with the central government calendar instead of the current June–July year. RBI issue taxable bonds for investments. From 1 July 2020, RBI is offering Floating Rate Savings Bonds, 2020 (Taxable) – FRSB 2020 (T). The interest on

1060-594: The Indian rupee was devalued. The currency lost 18% of its value relative to the US dollar , and the Narsimham Committee advised restructuring the financial sector by a temporal reduced reserve ratio as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish a private banking sector. This turning point was meant to reinforce the market and was often called neo-liberal . The central bank deregulated bank interests and some sectors of

1113-483: The RBI describes its basic functions to regulate the issue of banknotes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. The Central Office of the RBI was established in Calcutta (now Kolkata) but was moved to Bombay (now Mumbai) in 1937. The RBI also acted as Burma's (now Myanmar) central bank until April 1947 (except during

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1166-414: The RBI issues banknotes in this series in denominations from ₹5 to ₹100. Printing of five-notes, which had stopped earlier, restarted in 2009. On 8 November 2016, the ₹500 and ₹1000 banknote denominations of this series were demonetised and the new Mahatma Gandhi Series of banknotes were revealed in denominations of ₹500 and ₹2000, intended to replace this series. The following features are included in

1219-619: The RBI later clarified that it "has not prohibited" virtual currencies, a three-judge panel of the Supreme Court of India issued a ruling on 4 March 2020 that the RBI had failed to show "at least some semblance of any damage suffered by its regulated entities" through the handling of virtual currencies to justify its decision. The court challenge was filed by the Internet and Mobile Association of India , whose members include some cryptocurrency exchanges whose businesses suffered following

1272-592: The RBI restricted monetary policy to reduce the effects. Many committees analysed the Indian economy between 1985 and 1989. Their results had an effect on the RBI. The Board for Industrial and Financial Reconstruction , the Indira Gandhi Institute of Development Research and the Security & Exchange Board of India investigated the national economy as a whole, and the security and exchange board proposed better methods for more effective markets and

1325-695: The RBI's 2018 order. The central board of directors is the main committee of the central bank. The Government of India appoints the directors for a four-year term. The board consists of a governor, and not more than four deputy governors; four directors to represent the regional boards; two – usually the Economic Affairs Secretary and the Financial Services Secretary – from the Ministry of Finance and ten other directors from various fields. The Reserve Bank – under Raghuram Rajan's governorship – wanted to create

1378-578: The Reserve Bank Innovation Hub (RBIH) on 24 March 2022 in Bengaluru as Section-8 company under Companies Act, 2013 , with an initial investment of ₹100 crore to encourage and nurture financial innovation sustainably through an institutional set-up. RBIH meant to create an ecosystem that focuses on promoting access to financial services and products for the low-income groups in India. It will also help bring world class innovation to

1431-493: The bonds is payable semi-annually on 1 January and 1 July every year. The coupon on 1 January 2021 shall be paid at 7.15%. The Interest rate for next half-year will be reset every six months, the first reset being on 1 January 2021. There is no option to pay interest on cumulative basis. The central bank manages to reach different goals of the Foreign Exchange Management Act , 1999 . Their objective

1484-409: The central bank was ordered to support economic plan with loans. As a result of bank crashes, the RBI was requested to establish and monitor a deposit insurance system. Meant to restore the trust in the national bank system, it was initialized on 7 December 1961. The Indian government founded the funds to promote the economy and used the slogan "Developing Banking". The government of India restructured

1537-625: The central government and with the advice of the central board of directors serve as a forum for regional banks and to deal with delegated tasks from the Central Board. RBI has 31 branches in India. Mostly all are in Capital cities, exceptions are the Nagpur Reserve Bank branch which is actually a Second capital of Maharashtra and the Ahmedabad Reserve Bank branch. Nagpur Reserve Bank was established in 1956, while

1590-655: The country and also to the Reserve Bank of India. It manages and operates the Financial messaging platform (SFMS) that comprises Real-Time Gross Settlement and National Electronic Funds Transfer. INFINET is also managed by IFTAS. IFTAS has taken over the I ndian FI nancial NET work (INFINET), Structured Financial Messaging System (SFMS) and the Indian Banking Community Cloud (IBCC) from the IDRBT, effective 1 April 2016. Shaktikanta Das inaugurated

1643-432: The country to its advantage; and (ii) that it is essential to have a modern monetary policy framework to meet the challenge of an increasingly complex economy and the primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth" ...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate

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1696-614: The country. From 16 December 2019, one can transfer money online using the National Electronic Funds Transfer (NEFT) route 24x7, i.e., any time of the day and any day of the week. The Reserve Bank of India stated earlier in December 2019 that bank customers will be able to transfer funds through NEFT around the clock on all days including weekends and holidays from 16 December. In RTGS, transactions are processed continuously 24x7. Just as individuals need

1749-416: The currency and credit system of the country to its advantage. The primary objective of RBI is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions, and non-banking finance companies. The board is constituted by co-opting four directors from the Central Board as members for a term of two years and is chaired by the governor. The deputy governors of

1802-646: The event of a tie, the vote of the RBI governor is decisive. The same year, the RBI started issuing a new bond called the Sovereign Gold Bond , on behalf of the Government. The intent behind the scheme was to reduce gold imports by shifting investments from physical gold into a bond that tracked the price of gold. The bond also carried interest. In April 2018, the RBI announced that "entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling virtual currencies ," including Bitcoin . While

1855-456: The financial market like the trust and property markets. This first phase was a success and the central government forced a diversity liberalisation to diversify owner structures in 1998. The National Stock Exchange of India took the trade on in June 1994 and the RBI allowed nationalised banks in July to interact with the capital market to reinforce their capital base. The central bank founded

1908-414: The financial sector. RBIH is to help in convergence among various stakeholders from BFSI sector, start-up ecosystem, regulators and academia in the financial innovation space. RBIH is working on the blueprint of Digital Rupee . The central bank of any country executes many functions such as overseeing monetary policy, issuing currency, managing foreign exchange, working as a bank for government and as

1961-693: The governor of RBI as with the case of Y. Venugopal Reddy and Duvvuri Subbarao . Other persons forming part of the central board of directors of the RBI are Revathi Iyer, Sachin Chaturvedi, Satish Kashinath Marathe, Swaminathan Gurumurthy, Anand Gopal Mahindra, Venu Srinivasan, Pankaj Ramanbhai Patel, Ravindra H. Dholakia, Ajay Seth, and Vivek Joshi. Executive Directors (ED) consist of M. Rajeshwar Rao, Lily Vadera, Rabi N. Mishra, Smt. Nanda S. Dave, Anil K. Sharma, S. C. Murmu, T. Rabi Sankar, Janak Raj, P Vijayakumar, Indrani Banerjee, O.P. Mall and Sudha Balakrishnan (Chief Financial Officer). Sudha Balakrishnan,

2014-541: The interests of co-operative and indigenous banks. It is a member bank of the Asian Clearing Union . The bank is also active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion (AFI) . The bank is often referred to by the name "Mint Street". The preamble of the Reserve Bank of India describes the basic functions of the reserve bank as: ...to regulate

2067-423: The issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth. The Reserve Bank of India was established in 1934, under

2120-551: The last quarter of 2008–2009 and the central bank promotes the economic development. In 2016, the Government of India amended the RBI Act to establish the Monetary Policy Committee (MPC) to set. This limited the role of the RBI in setting interest rates, as the MPC membership is evenly divided between members of the RBI (including the RBI governor) and independent members appointed by the government. However, in

2173-527: The members of ACU are the central banks of Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar. The central banking authorities of member countries have issued detailed instructions and modalities for channeling the monetary transactions through the ACU. Membership in the ACU is open to central banks located in the geographical area of ESCAP and non-ESCAP. All eligible transactions between member countries are required to be cleared through

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2226-473: The national bank market and nationalized a lot of institutes. As a result, the RBI had to play the central part in controlling and supporting this public banking sector. In 1969, the Indira Gandhi -headed government nationalised 14 major commercial banks. Upon Indira Gandhi's return to power in 1980, a further six banks were nationalised. The regulation of the economy and especially the financial sector

2279-674: The notes. Each banknote has its amount written in 17 languages. On the obverse, the denomination is written in Hindi and English . On the reverse is a language panel which displays the denomination of the note in 15 of the 22 official languages of India . The languages are displayed in alphabetical order. Languages included on the panel are Assamese , Bengali , Gujarati , Kannada , Kashmiri , Konkani , Malayalam , Marathi , Nepali , Odia , Punjabi , Sanskrit , Tamil , Telugu and Urdu . Reserve Bank of India Deputy Governors The Reserve Bank of India (abbreviated as RBI )

2332-627: The protection of investor interests. The Indian financial market was a leading example for so-called "financial repression" (Mckinnon and Shaw). The Discount and Finance House of India began its operations in the monetary market in April 1988; the National Housing Bank, founded in July 1988, was forced to invest in the property market and a new financial law improved the versatility of direct deposit by more security measures and liberalisation. The national economy contracted in July 1991 as

2385-536: The public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective addressing of complaints by bank customers. The RBI controls the monetary supply, monitors economic indicators like the gross domestic product and has to decide the design of the rupee banknotes as well as coins. RBI uses methods like on-site inspections, off-site surveillance, scrutiny and periodic meetings to supervise new bank licences, setting capital requirements and regulating interest rates in specific areas. RBI

2438-435: The regulatory and supervisory issues. As a regulator and supervisor of the Indian banking system it ensures financial stability and public confidence in the banking system. It prescribes broad parameters of banking operations within which the country's banking and financial system functions. Its objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to

2491-401: The reserve bank are ex-officio members. One deputy governor, usually the deputy governor in charge of banking regulation and supervision, is nominated as the vice-chairman of the board. The board is required to meet normally once every month. It considers inspection reports and other supervisory issues placed before it by the supervisory departments. Board for Financial Supervision (BFS) through

2544-640: The years of Japanese occupation (1942–45)), even though Burma seceded from the Indian Union in 1937. After the Partition of India in August 1947, the bank served as the central bank for Pakistan until June 1948 when the State Bank of Pakistan commenced operations. Though set up as a shareholders' bank, the RBI has been fully owned by the Government of India since its nationalisation in 1949. RBI has

2597-776: Was divided into shares of 100 each fully paid. The RBI was nationalised on 1 January 1949, almost a year and a half after India's independence. The overall direction of the RBI lies with the 21-member central board of directors, composed of: the governor; four deputy governors; two finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary); ten government-nominated directors; and four directors who represent local boards for Mumbai, Kolkata, Chennai, and Delhi. Each of these local boards consists of five members who represent regional interests and

2650-428: Was established by RBI as one of its specialized division for the purpose of providing insurance of deposits and guaranteeing of credit facilities to all Indian banks. Until the Monetary Policy Committee was established in 2016, it also had full control over monetary policy in the country . It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934 . The original share capital

2703-598: Was established by RBI for the purpose of providing insurance of deposits and guaranteeing of credit facilities to all Indian banks . It has been set up by RBI to serve its information technology and cybersecurity needs and to improve the cyber resilience of the Indian banking industry . Indian Financial Technology and Allied Services was established by RBI in February 2015, mandated to design, deploy and support IT-related services to all Banks and Financial Institutions in

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2756-442: Was established on Wednesday, 29 January 1969, to analyse banking costs, effects of legislations and banking procedures, including non-banking financial intermediaries and indigenous banking on Government of India economy; with R.G. Saraiya as the chairman. The branch was forced to establish two new offices in the country for every newly established office in a town. The oil crises in 1973 resulted in increasing inflation , and

2809-448: Was reinforced by the Government of India in the 1970s and 1980s. The central bank became the central player and increased its policies a lot for various tasks like interests, reserve ratio and visible deposits. These measures aimed at better economic development and had a huge effect on the company policy of the institutes. The banks lend money in selected sectors, like agricultural business and small trade companies. The Banking Commission

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