Reserve Bank of India

Reserve Bank of India
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Though initially RBI was privately owned, it was nationalized in 1949. Its central office is in Mumbai where the Governor of RBI sits. In addition, RBI also has 22 regional offices and most of them are located in state capitals.

Major functions of Reserve Bank of India:

* Formulates, implements and monitors the monetary policy to maintain price stability and to ensure adequate flow of credit to productive sectors.
* Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
* Manages the Foreign Exchange Management Act, 1999.
* Issues and exchanges or destroys currency and coins not fit for circulation.
* Performs merchant banking function for the central and the state governments; also acts as their banker.
* Maintains banking accounts of all scheduled banks.