The Reserve Bank of India (RBI)
was established on April 1, 1935
, in accordance with the provisions of the Reserve Bank of India Act, 1934
. The Central Office of the Reserve Bank
was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.
Though originally privately owned, since nationalization
, the Reserve Bank is fully owned by the Government of India
Did You Know?
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: “to regulate the issue of Banknotes 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; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”
The Reserve Bank of India was set up on April 1, 1935. It is one of the few central banks to document its institutional history. So far, it has brought out four volumes of its history. Volume 1, covering the period from 1935 to 1951, was published in 1970. It details the initiatives taken to put in place a central bank for India and covers the formative years of the Reserve Bank. It highlights the challenges faced by the Reserve Bank and the Government during World War II and the post-independence era.
Covering the period from 1951 to 1967 was published in 1998. This period heralded an era of planned economic development in India. This volume captures the initiatives taken to strengthen, modify and develop the economic and financial structure of the country. Apart from the Reserve Bank’s role as the monetary authority, it highlights the endeavor to establish an institutional infrastructure for agricultural and long-term industrial credit in India. This volume succinctly covers the external payment problems faced by the country and the rupee devaluation of 1966.
On March 18, 2006, Hon’ble Prime Minister, Dr. Manmohan Singh released the third volume of the Reserve Bank’s history covering the period from 1967 to 1981. An important event of this period was the nationalization of fourteen banks in 1969, leading to the spread of banking in the country’s hinterland. The issues of safety and prudence in banking also gained prominence. Internationally, the abandonment of the Bretton Woods system in 1971 posed serious challenges for the developing countries including India. The volume also deals with the matters of co-ordination between the Reserve Bank and the Government.
Reserve Bank’s history was also released by Dr. Manmohan Singh, Hon’ble Prime Minister of India on August 17, 2013. It covers the eventful 16 years from 1981 to 1997 and is published in two parts, Part A and Part B.