Reserve Bank of India

The Reserve Bank of India, mostly known as RBI, is the central bank of India. It is the regulatory body responsible for the regulation of the Indian banking system. It is the apex financial institution of our country’s financial system entrusted with the task of control, promotion, supervision, development and planning. It influences the commercial banks management in more than one way. The ownership of RBI vested in the hands of the Ministry of Finance, Government of India and It is a member of the international monetary fund (IMF).

History

• Dr. Ambedkar in his book named “The Problem of the Rupee — Its origin and its solution” formulated some strategies. Based on these strategies The concept of Reserve Bank of India was encouraged.

• The British Government established the Imperial Bank of India to perform as the Central Bank of India in 1921. But unfortunately it failed to show its performance and didn’t achieve any success as the Central Bank.

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