Thursday, 2 August 2018

Reserve Bank Of India

                                                                   Reserve Bank of India 

Establishment of Reserve Bank :

According to the report of the Royal Commission on Indian Currency and Finance (also known as the Hilton Young Commission) in 1926, the Reserve Bank of India was established on 1st April 1935.
The Reserve Bank was nationalized in 1949.
After the Hilton Young Commission and Round Table Conference, it was decided to set up a Reserve Bank in India. On March 6, 1934, Parliament passed the Reserve Bank Act 1934. Initially, the share capital of the Reserve Bank was 5 crores. It was divided into five lakh shares of 100 rupees. At the time of establishment, the Directorate of Directors of 16 Directors was set up. Until 1948, the Reserve Bank also worked as the central bank of Pakistan.

The Reserve Bank is the central bank of the country and its work area is also very broad. The Reserve Bank has to do the following functions as a major bank.

1) Currency Issuer :

Reserve Bank has given monopoly to bring currency notes in the country. There is an independent department working in the Reserve Bank.

2) To work as a government bank:

Another important task of the Reserve Bank is to act as a government bank, agent, advisor. It is the responsibility of the Reserve Bank to keep cash and central government funds and accept the payment on their behalf. Government's public debt arrangement If the central government or the state government is in need, it can take loans from the Reserve Bank.

3) Bank of banks and final lender:

The Reserve Bank has given various powers to the money market to control the credit and banking system of the country. The Reserve Bank works with clearing. It also offers a number of facilities to banks. The Reserve Bank helps the bank get into bank economically collapse situation  and helps to get out of the financial crisis. Therefore, the Reserve Bank is called a bank of banks and the last lender is also called.

4) Foreign exchange management :

According to the Reserve Bank Act 40, it is the responsibility of the Reserve Bank to keep the foreign exchange rates stable. The Reserve Bank uses monetary and fiscal policies to control the rupee's external value. According to the Foreign Exchange Act 1947, the Reserve Bank can control the foreign securities and the payment made to a person living in another country.

5) Credit Control:

The Reserve Bank controls the credit money generated by other banks. To change the bank rate for this. Open market operations, etc.

6) Customer Service Department:

The Reserve Bank is committed to strengthen the grievance  mechanism to protect the bank's rights and increase the level of customer service. One part of it is the customer service department.

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