Reserve bank of India which is also termed as Central Bank of India is responsible to govern the monetary policy of the country. RBI was established on 1^st April 1935 under the RBI Act, 1934 and was formed with the recommendation of “HILTON-YOUNG Commission”. It was initially established as a privately owned bank and got nationalized on 1^st January 1949 after the independence of India. RBI is headquartered in Mumbai but initially, it was located in Kolkata and shifted to Mumbai in 1937.

Members of RBI

1. Governor-1
2. Deputy Governor-4
3. Directors-14
4. Government Officers-2

The present Governor of RBI is Shri Shaktikanta Das. He was appointed on 12^th December 2018. Among the ten directors, four are nominated by the local board committee whereas the rest of the ten members are appointed by the Government of India.

Subsidiaries of RBI

1. NHB(National Housing Bank)
2. BRBNMPL or Bhartiya Reserve Bank Note Mudran Private Limited
3. NABARD or National Bank for Agriculture and Rural Development
4. Deposit Insurance and Credit Guarantee Corporation(DICGC)

Functions of RBI:

• RBI issues the currency notes.
• It also acts as a Banker to the government.
• It holds cash reserves and foreign currency reserves.
• RBI is also known as the lender of last resort.
• RBI maintains a minimum reserve system of 200 crore rupees in a form of gold and foreign exchange reserves out of which 115 crore rupees must be in form of gold.

RBI Governor:

The Governor of RBI is the chief head of the Reserve bank of India. He implements policies of RBI to the benefit of the monetary status of the country. The status of RBI governor is the same as that of a state minister.

Who can become a Governor?

Initially, RBI Governors were a part of Indian Civil services like C D Deshmukh, Bengal Rama Rao etc. but any individual who holds a Graduate degree/ Post Graduate/Chartered Accountant can become a Governor of RBI provided that he had worked in any of the following institutions:

1. IMF/ World Bank.
2. Chairman or General Manager of a Bank.
3. Reputed Financial or Banking organization.
4. Ministry of Finance (GOI)

Other than the above any citizen who is 35 years or above than that is eligible. He must not be a member of the Parliament/State Legislature also he must not hold any other office for profit.

Who appoints the Governor of RBI?

The Governor of RBI is not elected but appointed by the PMO (Prime Minister Office) with the recommendation of Union Finance Minister.

Tenure:

Tenure of a Governor is five years however, it can be terminated in two cases and they are as follows:

1. If dismissed by the President.
2. Resignation is submitted by the Governor to the President.

Functions of the RBI Governor:

1. Responsible to administer and monitor currency issuance.
2. Responsible to issue a license to new private banks and also to foreign banks in India.
3. To ensure that the policy which is introduced by the RBI is implemented timely for the rural of the society. Responsible for regulation and administration of the Indian financial system.
4.  Responsible for maintaining foreign exchange in India. Regulates and manage (FEMA) Foreign exchange and management Act 1999 Act.

Complete List of the RBI Governors of India.

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Also Read:

Governors of States and Union Territories of India

PCA Full Form

RBI and its functions

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