EXECUTIVE SUMMARY

The Reserve Bank of India is Indias central banking institution, which controls the monetary
policy of the Indian rupee. It commenced its operational on 1 st April 1935 during the Bristish
Rule in accordance with the provision of the Reserve Bank of India Act, 1934.

The original share capital was divided into shares of hundred each fully paid, which were
initially owned entirely by private. Following Indias Independence on 15 th August 1947, the
RBI was nationalized on 1st January 1949.

The RBI plays an important part inn the developmnet stratergy of the Government of India. It is
a memberbank of the Asian Clearing Union. The general superintendence and direction of the
RBI is entrusted with the 21-memberentral Board of Directors: the Governor ( Urjit Patel ), 4
Deputy Governors , 2 Fiannace ministry representatives, 10 government-nominated directors to
represent important element from Indias economy, and 4 directors to represent local
boardsheadquaters at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards
consist of 5 members who will represent regional interests, and the interest of co-operative and
indigenous banks.

The major functions of RBI are:

Issue of currency notes

Bankers to the bank
Bankers to the government
Custodian of countrys Foreign Currency Reserves
Credit Control
Lender of the last resort and other
Supervisory & promotional functions

The bank is also active promoting financial inclusion policy and is a leading member of the
Alliance of financial inclusion .