Functions of RBI

Reserve Bank of India (RBI) is the Indian central bank. It was established in 1 April 1935 and, it was nationalized in 1949. The Central Board of Directors is the main committee of the central bank. Presently, this Board consists of 20 members. Boards have been established in Mumbai, Kolkata, Chennai and New Delhi. The Government of India appoints the directors for a four-year term. The Board consists of a governor, four deputy governors, fifteen directors to represent the regional boards, one from the Ministry of Finance and ten other directors from various fields.Central Board of Directors must hold at lest 6 meetings in a year and at least one meeting in 3 months. Bank’s Head Office is located in Mumbai. The bank has 22 regional office, most of them are in state capital.

Primary Functions of RBI are as follows:-

  • Issue of Paper Currency
  • Regulation of Credit means control over the credit by the credit policy of commercial banks
  • Banker of Banks and Government
  • Lender of the last resort
  • Foreign Exchange Management
  • Export assistance
  • Clearing House Functions
  • Change of currency
  • Transfer of currency
  • Publication of statistics and other information