Headquarters  – Kolkata > 1937 > Mumbai.

Establishment : 1934 (RBI Act, 1934)

Private shareholders >> 1949 (Nationalisation) >> Government of India.

Although it was a private bank it had two extra functions—

1) Regulation and control of the banks in India and

2) being the banker of the government.

Banking Regulation Act 1949 gave power to RBI.

History

Dr. B. R. Ambedkar gave guidelines to Hilton–Young Commission through his book “The Problem of the Rupee – Its origin and its solution”.

RBI was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance (Hilton–Young Commission).

Sir Deshmukh was first Indian Governor of RBI.

The RBI also acted as Burma’s (now Myanmar) central bank until April 1947 (except during the years of Japanese occupation (1942–45)), even though Burma seceded from the Indian Union in 1937.

RBI served as the central bank for Pakistan until (June 1948 – State Bank of Pakistan Established).

Structure

Main body = Central board of directors (appointed by GoI for 4 year term)

Board = Governor + <= 4 Deputy Governors (2 through Grade B Promotion + 2 outside).

RBI HAS 3 Fully owned (100%) subsidiaries viz.

1. Reserve Bank Information Technology Private Limited (ReBIT). (100%)
2. Deposit Insurance and Credit Guarantee Corporation DICGC.(100%)
3. Bharatiya Reserve Bank Note Mudran Private Limited Bangalore (BRBNMPL). (100%)
4. NABARD. [RBI held 72% 2010; Now GoI has 100%]
5. National Housing Bank. [RBI held 100% March 2019, now GoI has 100%]

The RBI has four regional representations :

North	New Delhi
East	Kolkata
West	Mumbai
South	Chennai

The Monetary Policy Committee of India (MPC) (6 members -3 from RBI including governor & 3 from GoI)

The MPC of India is responsible for fixing the benchmark interest rate in India. The meetings of the MPC are held at least 4 times a year.