Gensis Of Reserve Bank Of India - F&W

Reserve Bank Of India 

Action Starts here - Effects each and every corner of the society

LOGO of RBI Represents? Please answer in the comments section

The legal backing for the functions of the RBI can be obtained majorly from the following statues 

1.  Reserve Bank Of India Act, 1934
2.  Banking Regulation Act, 1949
3. Foreign Exchange Management Act, 1999,
4. Government Securities Act, 2006,
5. Payment and Settlement Systems Act, 2007

In this context, it is important to remember the preamble of the Reserve Bank Of India. It can be drilled down to 5 Points for ease of understanding 

1. To regulate the issue of Bank notes and
2. Keeping of reserves with a view to securing monetary stability in India 
   
3. Generally to operate the currency and credit system of the country to its advantage
4. To have a modern monetary policy framework to meet the challenge of an increasingly complex economy
5. To maintain price stability while keeping in mind the objective of growth.

But in reality RBI functions does not really confined to preamble of Reserve Bank Of India as it draws powers to function not only from RBI act , 1934 but also other regulations as mentioned above bestows the power's on central bank.

Foot Steps of Reserve Bank Of India


Establishment of RBI is as per the recommendations of white paper on Indian Constitutional Reforms [1933] but not as per  the recommendation of the Royal Commission on Indian Currency and Finance


RBI Act Came into Existence in the year 1934 and RBI as a Central Bank Commenced it's Operations on 1st April 1935 as a private Share Holder Bank with a paid up Capital of 0.05 Billion.


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Eagle - Eyed 😎