Reserve Bank of India (RBI) Foundation day - 1st April

Tags: Important Days

The Foundation Day of the Reserve Bank of India is celebrated on 1st April every year.

About Reserve Bank of India

• RBI was established on April 1, 1935 as per the provisions of the Reserve Bank of India Act, 1934.

• It started functioning from 1 April 1935.

• The central office of the Reserve Bank was established in Kolkata which was permanently shifted to Mumbai in the year 1937.

• It was nationalized in 1949 and now the government of India is the owner of RBI.

• It has the power to regulate Banks under the Banking Regulation Act 1949.

• It has the power to regulate the Non-Banking Financial Company (NBFC) under the RBI act 1934.

• RBI is also the regulator of the digital payment system under the Payment and settlement act 2007.

• Before independence till 1942 RBI used to issue currency not only for India but also for Myanmar which was then known as Burma. However, it was discontinued after 1947.

• Headquarters of RBI: Mumbai 

• Governor of RBI : Shaktikanta Das

Major functions of RBI

• Formulation, implementation and monitoring of monetary policy.

• To maintain price stability keeping in view the objective of growth.

• Sir Osborne Smith was made the first Governor of RBI.

• To lay down broad norms for banking operations.

• To protect the interests of the depositors and to provide affordable banking services to the general public.

• Administration of Foreign Exchange Management Act, 1999.

• Issuance and exchange of currency.

• Role of merchant bank for central and state governments.