All you need to know about RBI: The Apex Bank of India

All you need to know about RBI: The Apex Bank of India

What is a Central Bank / National Bank?

The Central Bank, also known as National Bank or Reserve Bank in some countries, is an apex monetary authority in a country. It is an institution that manages and oversees a country’s money supply, inflation and interest rates. It regulates the commercial banking system and acts as watchdog and regulator of other banks of a country. A Central Bank of a country acts as a banker and financial adviser to the government. Due to its pivotal role in the banking system, it is also known as “lender of last resort”.

Reserve Bank Of India (RBI):

The Reserve Bank of India (RBI) is the apex monetary Institution which controls Indian Rupee, monetary policy and banking system in India. The central Bank was first established in the year 1935 under the Reserve Bank of India Act, 1934. After India’s independence, the RBI was nationalised on 1 January 1949. In the year 1974, RBI became the member of Asian Clearing Union, an institution established by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). RBI plays a vital role in the developmental strategy of the Government as it regulates the monetary policy of the country.

Structure of RBI:

The core think tank of RBI is the committee of Central Board of Directors. The directors are appointed for a term of 4 years.

The RBI is currently headed by The Governor Urjit Patel. Two of the four deputy governors are selected from executive directors of the banks. One is selected from among the chairpersons of the public sector banks. A prominent economist is chosen as the fourth deputy governor.

Role of RBI in Indian Economy:

RBI has many vital functions to perform in the economy. Here we would provide a brief list of the core functions of RBI.
1. Regulation of Banking System
2. Currency Printing
3. Exchange Control Management and Regulation
4. Monetary Policy Formulation
5. Detection and Regulation of counterfeit currency notes

Publications by RBI:

RBI indulges into a lot of research work and publishes different research literature annually, Half-yearly, Quarterly, Bi-monthly, monthly as well as weekly. Below is a brief list of publications by RBI.

Publication Frequency of Publication
Annual Report Annual
Report on Trend and Progress of Banking in India Annual
Financial Stability Report Half-yearly
Monetary Policy Report Half-yearly
Report on Foreign Exchange Reserves Half-yearly
Variations to Foreign Exchange Reserves in India: Sources, Arbitrage and Costs Quarterly
Macroeconomic and Monetary Developments Quarterly
Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks Quarterly
Quarterly Industrial Outlook Survey Quarterly
Consumer Confidence Survey Quarterly
Survey of Professional Forecasters Bi-Monthly
RBI Bulletin Monthly
Monetary and Credit Information Review Monthly
Weekly Statistical Supplements Weekly

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