RESERVE BANK OF INDIA

The

Reserve Bank of India (RBI) was established under the Reserve Bank of

India Act, 1934 on 1 April 1935 & nationalised on 1 January 1949. The

Bank acts as banker to the Central Government, state governments,

commercial banks, state co-operative banks & some of the financial

institutions. It formulates & administers monetary policy with a view

to ensuring stability in prices while promoting higher production in the

real sector through proper deployment of credit. RBI plays an important

role in maintaining the stability of exchange value of the rupee and

acts as an agent of the Government in respect of India’s membership of

International Monetary Fund. The Reserve Bank moreover performs a variety of

developmental & promotional functions. These apart, the Reserve Bank

also handles the borrowing programme of the Government of India.

The Reserve Bank is the sole authority for issue of currency in India other than one rupee coins & subsidiary coins & notes.

As

the agent of the Central Government, the Reserve Bank undertakes

distribution of one-rupees notes & coins, as well as small coins

issued by the Government.

RESERVE BANK OF INDIA