Reserve Bank Of India

Made by India and made for India, that’s the role of the Reserve Bank of India. A seventy-two year old central bank, the Reserve Bank of India has been serving the Mumbai and Indian market as constituted in the Reserve Bank of India Act of 1934 since the year 1935.

The Reserve Bank of India is made to guarantee the monetary solidity of the country. The Reserve Bank formulates the monetary polices of the country and regulations of the financial system. The administration of the Reserve Bank of India is being sustained by the board of directors. It used to be a private entity back in its first few years of operation. It was only in the year 1949, that the Indian Government took over ownership succeeding a nationalization that took place also after that said year.

The Hilton Young Commission was responsible for the setting up of the Reserve Bank of India. Despite the fact that it was established almost ten years later, the report and recommendations for RBI were already submitted in 1926.

The Central Government is the appointing body of the central board of directors of the Reserve Bank of India. Dr. Y. Venugopal Reddy is presently filling in the governor’s seat. G. Padmanabhan from the Department of Information Technology is currently residing the office of the Chief General Manager in Charge. RBI has twenty two regional offices in India and its subsidiaries cover the National Bank for Agriculture and Rural Development, the Deposit Insurance and Credit Guarantee Corporation of India, and the National Housing Bank.

The Central Board of Directors of RBI is composed of thirteen members. On its seventy first anniversary, the India’s Union Government reconstituted the board. The Board now houses the country’s elite financial leaders including Kumar Mangalam Birla and Azim Premji. Suresh Tendulkar joins as a representative to the Eastern Area Local Board. Tendulkar is from the Economic Advisory Council of the Prime Minister. To represent the Northern Area Local Board in the Reserve Bank of India, U.R. Rao of the Physical Research Laboratory and the Department of Space joins too as one of the directors.

For the Southern Area Local Board, Lakshmi Chand is the representative in the Central Board. Shashi Rekha Rajagopalan, a consultant, was also appointed to the Central Board. The other members are a. Vaidyanathan, Man Mohan Sharma, D. Jayavarthanavelu, Y.H. Malegram, H.P. Ranina and Ashok S. Ganguly. These important names represent the important sectors of India’s economy.

To further the quality of customer service and the functions of RBI, the Central Board decided to open a department that will strengthen its customer relations; this department is called the CSD or the Customer Service Department. The CSD has the tasks of enhancing and assisting the performance of RBI’s functions.

One of which is its function as a monetary authority. RBI will function as a formulator, implementer and monitor of the monetary policies to make sure that there is enough flow of credit and price stability. The Reserve Bank of India functions as the supervisor and the regulator of India’s financial system. It sets the parameters of banking transactions in the country in order to keep the people’s trust and confidence on their system at the same time protecting the interest of depositors. In addition, RBI serves as the issuer of currency coins and notes. It maintains, exchanges, supplies and stops the circulation of unfit currency.

Aside from the CSD, the use of the Banking Ombudsman Scheme is seen as an effective way of addressing the needs and complaints of the customers. Along with its Customer Service Department, RBI believes that attending to even the minutest problem will help the central bank grow. RBI is proud that it’s made by Indian minds for Indian hands.