RBI can be expanded as Reserve Bank of India. It is Indian Central Bank. RBI occupies a pivotal position in the monetary and banking structure of the country. RBI controls and regulates the monetary banking and credit policies of the country. RBI performs the following functions
RBI enjoys the monopoly and exclusive rights for note issue. The currency notes issued by RBI are declared unlimited legal tender throughout the country. However it has to maintain certain reserves of gold, foreign exchange to back the issue of notes as required by law.
It also acts as bankers’ bank. Commercial banks are required to keep certain portion of their total deposits in the form of cash reserves with RBI.
The RBI performs the above functions to achieve the main objectives of economic development of the country. It regulates the supply of money to control the price level and interest rates.
The Reserve Bank of India is considered as India's main bank, which controls the financial strategy of the Indian currency. It initiated its operations in 1935 amid the British Rule. The RBI has an essential impact on the Development Strategy of the Government of India.
A Central Bank is an independent powerful banking authority which controls inflation, makes financial policy report and responsible for depositing foreign exchange reserves etc. The RBI needs to play out an extensive range of duties to reach out to the national objectives and industrial objectives.
The general superintendence and course of the RBI is ensemble of 21-member Central Board of Directors: the Governor, 4 Deputy Governors, 2 Finance Ministry agents, 10 finance minister's executives to represent imperative components of India's economy, and 4 chiefs to represent local boards which represent regional elements and is a 5 member board to perform the following functions: