About the RBI
The Reserve Bank of India is the country's central banking institution.
The RBI is also known by several other names:
- Banker's Bank
- Bank of the Government
- Lender of the Last Resort
- Central Bank of India
History of the RBI
- 1926: The Hilton Young Committee recommended the formation of a central bank to regulate the banking sector.
- 1929: The Great Depression led to the collapse of over 5000 banks and massive unemployment, highlighting the need for a central regulator.
- 1934: The RBI Act was passed.
- 1st April 1935: The RBI was established in Calcutta.
- 1937: The headquarters were permanently shifted to Mumbai.
- 1949: The RBI was nationalized, bringing it under full government control.
RBI Governors
- 1st Governor: Sir Osborne Smith.
- 2nd Governor: James Taylor.
- 3rd Governor & 1st Indian Governor: C.D. Deshmukh.
- 1st Woman Deputy Governor: K.J. Udeshi. (There has been no woman governor to date).
- 15th Governor: Dr. Manmohan Singh (the only person to have been RBI Governor, Finance Minister, and Prime Minister).
- 25th Governor: Shaktikanta Das.
- 26th Governor: Sanjay Malhotra.
The tenure for an RBI Governor is typically 3 years or up to 65 years of age.
Currency & Printing Facts
- The RBI has the sole authority to print currency notes, except for the ₹1 note.
- The ₹1 note and all coins are issued by the Government of India. The ₹1 note is signed by the Finance Secretary.
- The RBI logo features a Tiger and a Palm Tree.
- The maximum denomination RBI can print is a ₹10,000 note.
- Before printing, the RBI must maintain a Minimum Reserve System of ₹200 crore (₹115 crore in gold and ₹85 crore in foreign currency).
- The paper used for currency notes is made of cotton/cotton rag and printed using Intaglio Printing.
Note Printing Locations
- Nasik, Maharashtra
- Dewas, Madhya Pradesh
- Salboni, West Bengal
- Mysore, Karnataka
Coin Minting Locations
- Mumbai, Maharashtra
- Noida, UP
- Hyderabad, Telangana
- Kolkata, West Bengal
Classification of Banks
Scheduled Banks
Banks listed under the 2nd schedule of the RBI Act, 1934.
- Commercial Banks: Operate for profit. Includes Public Sector Banks (e.g., SBI), Private Sector Banks, Foreign Banks, and RRBs.
- Co-operative Banks: Work on a no-profit, no-loss policy. Structured at State, District, and Village levels. The first co-operative bank was Anyonya in Vadodara, Gujarat.
Non-Scheduled Banks
Banks not under the 2nd schedule of the RBI Act. e.g., NBFCs, Small Finance Banks (SFBs), and Payments Banks.
Practice Quiz
Test your knowledge!
1. When was the RBI established?
1st April 1934
1st April 1935
1st July 1955
27th Jan 1921
2. Who was the first Indian Governor of the RBI?
Sir Osborne Smith
James Taylor
Dr. Manmohan Singh
C.D. Deshmukh
3. What is the minimum reserve the RBI must maintain for printing currency?
100 Crore
200 Crore
500 Crore
1000 Crore
4. The signature on a 1 Rupee note belongs to whom?
RBI Governor
President of India
Finance Minister
Finance Secretary
5. Which committee suggested the formation of the RBI in 1926?
Narsimhan Committee
Hilton Young Committee
Cripps Mission
Cabinet Mission
6. Which of the following locations is used for minting coins?
Nasik, Maharashtra
Noida, UP
Dewas, Madhya Pradesh
Salboni, West Bengal