RBI - 10 things to know with detail
- 1. Reserve Bank of India (RBI) is the central bank of India and was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
- 2. The RBI is responsible for regulating the monetary policy of the country, issuing currency, managing foreign exchange reserves, and overseeing the banking sector.
- 3. The RBI is governed by a central board of directors headed by the Governor, who is appointed by the Government of India. The current Governor of RBI is Shaktikanta Das.
- 4. The RBI has the authority to issue and regulate the Indian rupee currency. It is also responsible for maintaining price stability and controlling inflation in the economy.
- 5. The RBI acts as a banker to the Government of India, commercial banks, and other financial institutions. It manages the government's banking transactions, debt issuance, and cash reserves.
- 6. The RBI plays a crucial role in ensuring the stability of the financial system by supervising and regulating banks, non-banking financial companies (NBFCs), and other financial institutions.
- 7. The RBI formulates and implements monetary policy through various tools such as the repo rate, reverse repo rate, cash reserve ratio (CRR), and statutory liquidity ratio (SLR) to achieve its objectives of price stability and economic growth.
- 8. The RBI also plays a significant role in promoting financial inclusion and development by implementing various initiatives to expand banking services to underserved and marginalized populations.
- 9. The RBI is a member of various international organizations such as the International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS), representing India's interests in the global financial system.
- 10. The RBI publishes various reports and data on the Indian economy, financial markets, and banking sector to provide transparency and information to policymakers, investors, and the public.