Reserve Bank of India was established on April 1, 1935, as the Central Bankof the country, in accordance with the provisions of the Reserve Bank of India Act, 1934 with its Central Office at Mumbai. It was originally privately owned, but since nationalisation in 1949 fully owned by the Government of India.

As per preamble to the Reserve Bank of India Act, 1934, it is mentioned as under:

"�to regulate the issue of Bank Notes and keeping of reserves witha view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

1. Central Board

   RBI is governed by the Central Board, which is appointed/nominated by the Government of India for a period of four years. The Central Board consists of the Governor and four Deputy Governors, as official Directors. Additionally there are 14 non-official directors. 10 of them are nominated by Government from various fields and one government Official. The remaining four Directors are selected one each from four local boards.

2. Local Boards

   There are four Local Boards one each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi. Membership of the Local Boards consist of five members each . They are appointed by the Central Government for a term of four years

While Central Board looks after general superintendence and direction of the Bank's affairs, the function of the Local Boards is to advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time

Main Functions

1. Monetary Authority:

   Formulates, implements and monitors the monetary policy.

   Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

2. Regulator and supervisor of the financial system:

   Prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.

3. Manager of Exchange Control:

   Manages the Foreign Exchange Management Act, 1999.

   Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

4. Issuer of currency:

   Issues and exchanges or destroys currency and coins not fit for circulation.

   Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role

Performs a wide range of promotional functions to support national objectives.

Related Functions

1. Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.

2. Banker to banks: maintains banking accounts of all scheduled banks.

Offices

RBI has 22 regional offices, most of them in state capitals. It has six training establishments, of which three, namely, College of Agricultural Banking, Bankers Training College and Reserve Bank of India Staff College as part of RBI. Others are autonomous institutions, such as, National Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT)

Subsidiary Institutions

1. Fully owned: National Housing Bank(NHB), National Bank for Agriculture and Rural Development(NABARD), Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)

2. Majority stake: State Bank of India

3. Minority stake: Infrastructure Development Finance Company(IDFC), Securities Trading Corporation of India(STCI), Discount and Finance House of India(DFHI)

In keeping with its approach to avoid the potential conflict of interest created by the ownership of regulated financial institutions, the Reserve Bank divested its entire holdings in the Securities Trading Corporation of India Ltd. and the Discount and Finance House of India. Similar disinvestment is proposed for its holding in the State Bank of India, the National Housing Bank and the National Bank for Agriculture and Rural Development. In pursuance of the objective of withdrawing from development financing functions, the Reserve Bank transferred assets on account of loans and advances to Development Financial Institutions out of National Industrial Credit (Long Term Operations) Fund to the Government, replacing them with long-term Government of India securities through private placement.

Publications

1. Annual: Annual Report, Report on Trends and Progress of Banking in India, Report on Currency and Finance, Report on State Finances.

2. Quarterly: Occasional Papers (based on research), Banking Statistics.

3. Monthly: RBI Bulletin, Credit Information Review

4. Weekly: Statistical Supplement

5. Press Releases:issued every day to convey policy decisions.

Website (Address: www.rbi.org.in ): updated daily with all publications, press releases, speeches of Governor/Deputy Governors

Customer Service

Helpdesks: in all departments and all offices to give general guidance to public

Regulations Review Authority: constantly reviews rules and regulations to make them more customer-friendly

The various departments of RBI forming its internal organisation with their detailed functions separately given.