RBI: established on 1 April 1935 under RBI act 1934 (on recommendations of John Hilton Young Commission 1926 - called Royal commission on Indian Currency & Finance). RBI used to be shareholder's bank, then nationalized w.e.f 1st Jan 1949.
Earlier SBI (Imperial bank of India) was conducting Central bank's functions.
Central office in Mumbai since 1937 (initially in Calcutta) formulates policies.
Preamble of RBI: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
Paid-up Capital of RBI: Rs. 5 crores
Management: RBI affairs are governed by Central Board of Directors, which is appointed by GOI under RBI act. It consists of:
1) Official Directors: 1 Governor (Dr. Raghuram Rajan), not more than 4 Dy. Governor appointed by GOI.
By convention out of 4 DGs 2 are promoted from within RBI ranks, 1 is economist & 1 is commercial banker. Right now the DGs are:
Sh. H.R. Khan, Dr. Urjit Patel, Sh. R. Gandhi.
2) Non-official Directors: 10 nominated by GOI from various fields & 2 Govt officials.
3) 4 Directors 1 each from Local boards.
Local Boards are situated at 4 metros their basic function is : "To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks..."
For present list of Governor, Dy. Governors, Directors click here.
