Reserve Bank of India - Important points

The Central Board of Directors is the main committee of the central bank. 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.

 The RBI acted as Burma's and Pakistan’s (until June 1948) central bank.

Highlights

Established	April 1, 1935
Establishment Act	Reserve Bank of India Act, 1934.
Initial Headquarters	Calcutta
Present Headquarters	Mumbai (From 1937)
Number of regional offices	19
Sub offices	9
Training Institutes of RBI	·         College of Agricultural Banking ·          Reserve Bank of India Staff College
Fully owned Subsidiaries	·         Deposit Insurance and Credit Guarantee Corporation of India(DICGC) ·         Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL) ·         National Housing Bank (NHB)
Nationalization year	1949
No of Departments	28
Functions	·         Monopoly of Note issue ·         Banker, Adviser and Agent to the Govt. of India ·         Banker to Banks ·         Custodian of Foreign exchange and gold. ·         Re-discounts bills of exchange and hundis. ·         Lender of last Resort ·         Maintains stability of foreign value of Rupee. ·         Acts as clearing house ·         Credit control
Institutions established by the RBI	·         Deposit Insurance and Credit Guarantee Corporation ·         Unit Trust of India (1964), the first mutual fund ·          of the country ·         Industrial Development Bank of India (1964) ·         National Bank for Agriculture and Rural Development (1982), for promoting rural and agricultural credit ·         Discount and Finance House of India (1988), a money market intermediary and a primary dealer in government securities ·         National Housing Bank (1989), an apex financial institution for promoting and regulating housing finance ·         Securities and Trading Corporation of India (1994)

Board for Financial Supervision (BFS)

The Reserve Bank of India performs the function of financial supervision under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India. It consists of four Directors from the Central Board (term of two years), and is chaired by the Governor. The Board is required to meet normally once every month.

What is RBI’s Clean Note Policy?

·         Education campaign to handle notes:  no stapling, writing, excessive folding.

·         Timely removal of soiled notes: use of currency verification and processing systems and sorting machines.

·         Exchange facility for torn, mutilated or defective notes: at currency chests of commercial banks and in Reserve Bank issue offices.

Printing presses for printing notes

·        Dewas in Madhya Pradesh

·         Nasik in Maharashtra

·         Mysore in Karnataka

·         Salboni in West Bengal.

The presses in Madhya Pradesh and Maharashtra are owned by the Security Printing and Minting Corporation of India (SPMCIL), a wholly owned company of the Government of India. The presses in Karnataka and West Bengal are set up by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of the Reserve Bank.

Coins are minted by the Government of India. 

RBI is the agent of the Government for distribution, issue and handling of coins. Four mints are in operation. 

They are

·         Mumbai

·         Noida in Uttar Pradesh

·         Kolkata

·         Hyderabad