We all are pretty well aware of RBI,but only few would be knowing that, RBI is known by the same (mint street).
So,here this blog is about Reserve Bank of India, and by the time you end up reading it, you would be having a great deal of information about Reserve Bank of India.
We all must be knowing it is the India’s Central Bank, which comprises the monetary policy of the Indian rupee.RBI was established on 1st April,1935 under the RBI Act 1934.It was started with the share capital of ₹5 crore which was divided into 5 lakhs equity shares of ₹100 each, which were initially owned entirely by private shareholders. Though RBI was established on 1st April,1935 but was established on 1st January,1949.
It’s headquarter was situated in Calcutta before 1937,now at Mumbai (since 1937).
RBI has a logo of “Palm tree and Tigers”
Though entire country follows it’s financial year on 1st April to 31 March but RBI observes it from 1st July to 31 June.
RBI (Mint street) is a statutory body ,which has total 21 members, follows as:
4=Regional Heads (Delhi, Mumbai, Kolkata, and Chennai)
2=Finance ministry representatives
10=Directors nominated by the government
RBI has 4 regional Boards,19 Regional Offices and 11 Sub Offices
Some bewildering facts about Governor and Deputy Governors of RBI:
- Maximum tenure of RBI governor- 5 years or the age of 65 whichever is earlier.
- Maximum tenure of Deputy Governor of RBI-5 years or the age of 62 whichever is earlier.
- 1 Governor of RBI-Osborne Smith (1935-1937)
- 1 Deputy Governor of RBI-James Braid Taylor (1935-1937)
- 2 Governor of RBI-James Braid Taylor (1937-1943)
- 3 Governor of RBI,or first Indian Governor of RBI-C.D Deshmukh (1943-1949)
- 15 Governor of RBI-Dr.Manmohan Singh (1982-1985)
- 23 Governor of RBI-Dr.Raghuram Govind Rajan (2013-2016)
- 24 Governor of RBI-Dr.Urjit Patel (2016-December 2018)
- 25 Governor of RBI-Shaktikanta Das (12 December 2018-incumbent)
- Maximum tenure of RBI governor-Benegal Rama Rau,(4th Governor). 7 years 197 days.
- Minimum tenure of RBI governor-Amitav Ghosh (16th Governor) 20 days
- RBI governor at the time of nationalization of 14 banks-L.K Jha(8 Governor)1967-1970
- RBI governor at the time of nationalization of 6 banks-I.G Patel (14 Governor)1977-1982
- RBI governor at the time of New economic reforms of 1991-S.Venkitaraman(18 Governor) 1990-1992
- 1st female deputy governor of RBI-K.J Udeshi (2003-2005)
- 2nd female deputy governor of RBI-Shyamala Gopinath (2004-2009, 2009-2011)
- 3rd female deputy governor of RBI- Usha Thorat (2005-2010)
Functions of Mint Street:
- Issue of currency: RBI has the sole authority to issue currency in India in order to secure control over volume of currency and credit.
- Rs1 note and all the coins are issued by Ministry of Finance.
- RBI issues all the currency notes in India from rs2 and above . These notes circulate throughout the country as legal tender money.
₹1 note- Finance Secretary (no more in use)
₹2 & above- RBI governor
- Since 1957, RBI issues paper currency under” Minimum Reserve System” under which it keeps a minimum backing of ₹200 crores out of which rs 115 crores worth of gold (bullion) & ₹85 crores worth of foreign securities (currency)
- It is also known as “Banker to Government” (center & State government), which means fund provider of the government.
- It is also known as”Banker’s Bank and supervisor”, which means it also provides funds in the form of loan, advances and securities to the banks.
- It also checks credit control and money supply in the market,via monetary policy. Which means,it also checks inflation and deflation in the market.
- It is also known as”lender of Last resort”, which means,any financial institutions which is in dire need of funds and aids, RBI is the last choice for it.
- RBI is also the custodian of foreign exchange, which means it checks import and export Trade, balance of payments etc.
- Last but not the least,it also collects and publish data, regarding public welfare and schemes.
So, that’s all for now!
Hope you end up gaining some useful and bewildering facts about Mint Street.
If you find out some correction need to be done, let us know in comment section below.
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