Reserve Bank of India

The Reserve Bank of India(RBI) was set up on the recommendations of the Hilton Young Commission which submitted its report in the year 1926. However, after nine year basing on the report, the Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. It is is the central and regulatory bank of India. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. It was initially privately owned bank. Now, it is Government of India undertaking after nationalization of it in 1949.
It has 22 regional offices and most of them are in state capitals.
The Reserve Bank regulates the issue of currency notes and keep the check on their reserves to maintain monetary stability in India and operate the currency and credit system of the country.
The Reserve Bank's affairs are governed by a central board of directors appointed by the Government of India in. keeping with the Reserve Bank of India Act.
Objectives
Regulator and supervisor of the financial system
Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
Maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressal of complaints by bank customers.
Manager of exchange control
Manages the Foreign Exchange Management Act, 1999.
Facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency
Issues and exchanges or destroys currency and coins not fit for circulation.
To give the public adequate supply of currency of good quality and to provide loans to commercial banks to maintain or improve the GDP.
It also performs merchant banking function for the central and the state governments; also acts as their banker.