The Reserve Bank of India (RBI) is India’s Central Bank, also known as the banker’s bank. The RBI controls the monetary and other banking policies of the Indian government.
Read on to know all about RBI, its objectives, organisation structure, functions, branches and more.
The Reserve Bank of India (RBI) is the apex bank in India and a member of the International Monetary Fund (IMF). It is the backbone of Indian financial system and the central banking institution of India. As the Central Bank, it plays a crucial role in India’s economic development, financial stability and smooth functioning of the banking sector.
The table provides the history of RBI with the timelines of its origin and evolution:
Year | Event |
1926 | The ‘Royal Commission on Indian Currency and Finance’ (Hilton Young Commission) recommended setting up of a Central Bank for India. |
1934 | The British enacted the Reserve Bank of India Act. |
1935 | The Reserve Bank of India was established on 1st of April in Calcutta. |
1937 | The Reserve Bank of India was permanently moved from Calcutta to Mumbai. |
1949 | The Reserve Bank of India was nationalised and became a member bank of the Asian Clearing Union. |
The Reserve Bank of India (RBI) was established on 1 April 1935, in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank is permanently situated in Mumbai since 1937.The Reserve Bank is fully owned and operated by the Government of India.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
The Reserve Bank’s operations are governed by a central board of directors, RBI is on the whole operated with a 21-member central board of directors appointed by the Government of India in accordance with the Reserve Bank of India Act.
The Central board of directors comprise of:
The primary objectives of RBI are to supervise and undertake initiatives for the financial sector consisting of commercial banks, financial institutions and non-banking financial companies (NBFCs).
Some key initiatives are:
The Reserve Bank of India administers the following Acts:
The Reserve Bank of India Act, 1934 was passed to establish the RBI to regulate banknotes issuance and look into the monetary stability of the country.
The RBI Act, 1934, contains provisions relating to the composition of RBI, functions to be carried out by the RBI, prohibition of acceptance of deposits by unincorporated bodies, regulation of transactions in derivatives, money market instruments and securities, monetary policy and penalties. It also contains the list of scheduled banks that are covered under the Act.
Some of the important provisions of the Act are:
Monetary Authority
Regulatory and Supervisory
Foreign Exchange Management
Currency Issuer
Developmental role
Related Functions
Annual Report – The annual report is a statutory report of the Reserve Bank of India that is released every year. This report consists of valuation and progress of the Indian economy. Overview of the economy, the working of the Reserve Bank during that year and the RBI’s projected vision and agenda for the following year along with the annual accounts of the Reserve Bank
Report on Trend and Progress of Banking in India – This document is an assessment of the policies and progress of the financial sector for the preceding year.
Lectures – The Reserve Bank of India has constituted three annual lectures. Two of these lectures are conducted by past Governors of the Reserve Bank and one lecture is by a noted economist.
Report on Currency and Finance – This report is documented and presented by the staff of Reserve Bank of India bank and focusses on a particular theme and presents a detailed economic analysis of the issues related to the theme.
Handbook of Statistics on the Indian Economy – This report is an important initiative by the Reserve Bank to improve data distribution. It is a resourceful storehouse of major statistical information.
State Finances: A Study of Budgets – The report is an essential source of segregated state-wise financial data and provides an analytical data-driven conceptualisation on the fiscal position of state governments across India. These data inputs are used to analyse specific issues of relevance.
Statistical Tables Relating to Banks in India – This annual publication contains holistic timeline data with regards to the Scheduled Commercial Banks (SCBs) of India. The report also covers the information of balance sheets and performance indicators for each SCB in India. The journal also includes segregated data sources on some essential factors relating to bank-wise, bank group-wise and state-wise level of information.
Basic Statistical Returns – This is another data-focused yearly journal which represents complex information on the number of offices, employees, deposits and credit of Scheduled Commercial Banks in minute levels of detail such as, region-wise, state-wise and district-wise information. This information also trickles down to the population and credit requirements in each bank.
Repo Rate
Repo or repurchase rate is the benchmark interest rate at which the RBI lends money to all other banks for a short-term. When the repo rate increases, borrowing from RBI becomes more expensive and hence customers or the public bear the outcome of high-interest rates.
Reverse Repo Rate (RRR)
Reverse Repo rate is the short-term borrowing rate at which RBI borrows money from other banks. The Reserve Bank of India uses this method to reduce inflation when there is excess money in the banking system.
Cash Reserve Ratio (CRR)
Cash Reserve Ratio is the particular share of any bank’s total deposit that is mandatory and to be maintained with the Reserve Bank of India in the form of liquid cash.
Statutory Liquidity Ratio (SLR)
Leaving aside the cash reserve ratio, banks are required to maintain liquid assets in the form of gold and approved securities. A higher SLR disables the banks to grant more loans.
The initiatives taken by the Reserve Bank in the domain of electronic payment systems are immense and vast. The types of electronic forms of payment by the RBI are as follows:
To know the latest news from The Reserve Bank of India read circulars and notifications
The headquarters of RBI is located in Mumbai. Below are the details of the RBI headquarters.
Address: Reserve Bank of India, Mumbai Regional Office, Shahid Bhagat Singh Road, Kala Ghoda Fort, Mumbai - 400001
Telephone Number: +91 22 - 2270 4715
Fax: +91 22 - 2265 0058
Email: rdmumbai@rbi.org.in
RBI has its branches in all the state capitals. Reserve Bank of India (RBI) has its offices spread over 33 different locations in India. Out of the 33 regional offices, RBI has four zonal offices -
Below table provides the list of RBI regional offices with its address:
RBI Regional Offices | Address of RBI Regional Office |
RBI Srinagar | Reserve Bank of India, Srinagar office, Amir Manzil, 1-C, Rajbagh, Srinagar (Jammu and Kashmir) - 190 008. |
RBI Jammu | Reserve Bank of India, Rail Head Complex, Jammu - 180 012 |
RBI Shimla | Reserve Bank of India, Main Market, Kasumpti, Shimla - 171 009 |
RBI Chandigarh | Reserve Bank of India, Central Vista, Sector 17, Chandigarh - 160 017 |
RBI Dehradun | Plot No. 16-17, IT Park, Sahastradhara Road, Dehradun - 248 013 |
RBI New Delhi | Reserve Bank of India, 6, Sansad Marg, New Delhi - 110 001, India |
RBI Itanagar | Reserve Bank of India, Arunachal Pradesh Forest Corporation Limited Building, Van Vihar, Chimpu, Opposite Kendriya Vidyalaya No 2, Itanagar - 791113 |
RBI Kohima | Reserve Bank of India, 1st Floor, T. Tachu Enclave, New Secretariat – High Court Junction Road, Kohima, Nagaland - 797004 |
RBI Guwahati | Reserve Bank of India, Pan Bazaar, Station Road, Guwahati - 781 001 |
RBI Imphal | Reserve Bank of India, Lilashing Khongnangkhong, Opposite Manipur Legislative Assembly, Imphal – 795 001 |
RBI Aizawl | Reserve Bank of India, House No- T30, VZ Building, Thakthing Veng, Aizawl, Mizoram - 796005 |
RBI Agartala | Reserve Bank of India, 2nd Floor, Jackson Gate Building, Lenin Sarani, Agartala, Tripura - 799001 |
RBI Shillong | Reserve Bank of India, 3rd Floor, BSNL Bhavan, Opposite Ka Phan Nonglait Park, Barik, Shillong, East Khasi Hills, Meghalaya-793001 |
RBI Gangtok | Reserve Bank of India, Tseyang Djong Building, National Highway 10, Amdo Golai Tadong, Gangtok, Sikkim-737102 |
RBI Jaipur | Reserve Bank of India, Rambagh Circle, Tonk Road Jaipur - 302 004 |
RBI Lucknow | Reserve Bank of India, 8-9, Vipin Khand, Gomti Nagar, Lucknow-226 010 |
RBI Kanpur | Reserve Bank of India, Post Box No. 82/142, Mahatma Gandhi Road, Kanpur- 208 001 |
RBI Patna | Reserve Bank of India, South Gandhi Maidan, Patna - 800 001 |
RBI Ranchi | Reserve Bank of India, First Floor, Zila Parishad Bhawan, Kutchery Chowk, Ranchi – 834001 |
RBI Ahmedabad | Reserve Bank of India, Near Gandhi Bridge, Income Tax Circle, Ashram Road, Ahmedabad – 380014 |
RBI Bhopal | Reserve Bank of India, Hoshangabad Road, P.B. No.32, Bhopal - 462 011 |
RBI Kolkata | Reserve Bank of India, 15, Netaji Subhas Road, Kolkata-700 001 |
RBI Raipur | Reserve Bank of India, Sector 24, Atal Nagar, Nava Raipur - 492101 |
RBI Nagpur | Reserve Bank of India, Dr. Raghavendra Rao Road, Civil Lines, P.B.No.15, Nagpur - 440 001 |
RBI Bhubaneshwar | Reserve Bank of India, Pt. Jawaharlal Nehru Marg, P.B.No. 16, Bhubaneswar - 751001 |
RBI Belapur | Reserve Bank of India, Plot No.3, Sector 10, H.H. Nirmaladevi Marg, CBD Belapur, Navi Mumbai - 400 614 |
RBI Hyderabad | Reserve Bank of India, 6-1-56, Secretariat Road, Saifabad, Hyderabad - 500 004 |
RBI Vijayawada | Reserve Bank of India, 'Stalin Central', D. No:27-37-158, MG Road, Governorpet, Vijayawada |
RBI Panaji | Reserve Bank of India, 7th Floor, Gera's Imperium-II, Patto, Panaji - 403 001 |
RBI Banglore | Reserve Bank of India, Post Box No. 5467, 10/3/8, Nrupathunga Road, Bengaluru - 560001 |
RBI Chennai | Reserve Bank of India, Fort Glacis, No. 16, Rajaji Salai, Chennai - 600 001 |
RBI Kochi | Reserve Bank of India, Banerji Road, Ernakulam North, Post Box No. 3065, Kochi - 682 018 |
RBI Thiruvananthapuram | Reserve Bank of India, Bakery Junction, P.B No.6507, Thiruvananthapuram - 695 033 |
The Reserve Bank of India (RBI) was established on 1 April 1935 in India under the RBI Act. It is the primary bank in India that is responsible for the regulation of the Indian banking system. It issues banknotes, controls supply of notes and makes monetary policies to promote the economic development of the country.