### RESERVE BANK OF INDIA ### ** Central bank is a bank which acts as a banker to the government; has monopoly of note issue and controls the entire banking system. ** RBI is the central bank in India. ** RBI was established by an act of Parliament in 1934. ** The initial share capital for RBI was Rs. 5 crores. ** RBI was nationalized under (transfer of public ownership) act 1948. ** Its affairs are regulated by central board of directors. ** It has four regional centres at Mumbai, Kolkatta, Chennai and Delhi. ** The central office of the bank is at Mumbai. ** RBI is note issuing authority; banker, agent and financial adviser to the government; custodian of cash reserves of banks; custodian of nation’s reserves of foreign exchange; lender of the last resort; controller of credit etc. ** Currency notes other than one rupee notes are issued by RBI. ** RBI has credit control – regulation of cash reserves of commercial banks, regulating the flow of credit, qualitative control and open market operations. ** Handles all government transactions. ** It is a banker’s bank. ** It maintains the exchange rate for the Indian rupee; hold the country’s reserves in foreign currencies and administration of the exchange management regulations.
Posted on: Sat, 24 May 2014 11:08:27 +0000
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