RBI full form or meaning is Reserve Bank of India.
What is RBI?
RBI is the central bank of India. RBI’s definition is the Reserve bank of India. Every country has at least one central bank which is also known as the head of commercial banks or the bank of banks. It is the centre of the banking system in that particular country.
As a central bank, the RBI control India’s monetary system and banking policies. It acts as the bank for the Indian government.
After the creation of the Reserve bank of India Act, 1934 the reserve bank of India was formed on April 1, 1935.
History of RBI
In 1926 the Royal Commission on Indian currency and Finance suggested creating a central bank for India to differentiate the management of currency and credits as well as a monetary system with the government.
Thus in 1935 RBI was established for monetary stability, currency management and the administration of nations’ payment and finance system. Another fact is that the British government is the reason behind the foundation of RBI.
What are the RBI objectives?
RBI has widened the perspective to administrate the finance and monetary system of India. It has yearly as well as long term goals to accomplish. Here are chief objectives of the Reserve bank of India –
- Focusing on the modernization of the financial market and system to fulfil all the needs for economic growth
- Controlling and directing different monetary projects through the financial institutes, commercial banks and the non-banking financial firms also.
- TO manage the reserve from the commercial banks
- To help to grow the national infrastructure
- Accomplishing the goal of making the best monetary policies for economic growth
- Running and producing the currency of India
- To successfully execute and formulate the financial policies and monetary decisions
- Promotion of national banking
- Collecting money from the debit sector
- To make impartial decisions and not to be influenced by the national or state elections
How the RBI controls the money market?
RBI has money control tools also named as monetary tools that are some policies or rules that RBI applies on financial system and firms to control the money flow in the market.
These include – buying and selling securities or bonds, Collecting CRR and SLR from the commercial banks and some other methods like this.
Where is the RBI head office?
The reserve bank of India has the head office in Mumbai, Maharashtra.
and having regional offices in almost every state capital.
When RBI nationalised?
The Reserve bank of India Act, 1948 made the RBI to be nationalised from 1st January 1949. In this nationalization process, all the capital shares of the RBI were transferred to the central government on sufficient payment.
Where does RBI get money from?
The RBI gets most of its money from bond interests. It can even change bond prices to meet the ends. In other ways, RBI can buy or sell bonds in the open market operational activities. RBI does it to control the money supply in the economy.
Another source of income for RBI is giving credits to the commercial banks and the government. It earns from the discount rate or bank rate of credit.
Who elects RBI governor?
The Indian government according to section 8 of the Reserve bank of India act, 1934 is responsible to appoint the governor and deputy governor of RBI.
Interesting facts about RBI
- RBI selected the Panther and the Palm tree as its symbol
- RBI’s central office first began in Calcutta and then moved to Mumbai in 1937
- The reserve bank of India is managed and directed by the 21 members of the Central board of directors.
- There are four-zone offices of RBI that are in New Delhi, Chennai, Kolkata and Mumbai.
- The reserve bank of India also operates two colleges to give training to its employees. These are –
- Reserve bank staff college at Chennai, and
- College of agricultural banking at Pune
- Sir Osborne Smith was the first-ever governor of the Reserve bank of India
- RBI also works as a member of the International Monetary Fund (IMF)
Some famous slogans of RBI to make people aware-
The RBI periodically issues several slogans about banking and banking precautions, some of which are as follows-
- RBI kahta hai..Jankar baniye …satark rahiye
- Paisa Bolta hai- this slogan was about new currency notes.
Some other famous full forms of RBI
RBI-Radio Berlin International (a radio station in Germany)
RBI- Ripple Blanking Input (in computing)
Similar full forms-