Banking Awareness : History of Reserve Bank of India

Hello Readers, Today at LOUD STUDY, we will deal with the topic History of Reserve Bank of India

History of Reserve Bank of India is an important topic to study for preparation of various government sector as well as banking exams

In 1920, Hilton Young Commission was formed to keep an eye on activities of private banks.

In 1926, Hilton Young Commission also known as Royal Commission on Indian Currency and Finance recommended to setup a bank to track private bank activities

On Hilton Young Commission theory, RBI Act,1934 came and 1st April 1935, Reserve Bank of India was established on policies of RBI Act,1934

RBI was started with an initial capital of 5 Crore and was owned privately by Private Stakeholders

Head Quarter of RBI Reserve Bank of India at the time of establishment i.e in 1935 was at Calcutta ( now known as Kolkata ) but later in 1937 it was permanently moved to Bombay ( now known as Mumbai )

Sir Osborne Smith was the first Governor of the Reserve Bank of India

Chintaman Dwarkanath Deshmukh, was the first Indian Governor of the Reserve Bank of India

On 1st January 1949, RBI Reserve Bank of India was nationalized and since then it is owned by government of India

Sir Benegal Rama Rau, was the longest serving Governor of the Bank and was the first governor of RBI when Reserve Bank of India got nationalized

Banking Regulation Act 1949 had empowered RBI to control other banks in the country and thus can be called as head of other banks

July to June cycle is followed as Financial Year for RBI

Preamble of RBI : “to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”

Logo of RBI was designed in British India with the sketch of Lion and Palm Tree but later in 1949 Lion was changed with national animal ” Tiger “

Shaktikanta Das is currently the governor of RBI and he is the 25th governor of RBI

Here is a video communicating " History of Banking in India " in English as well as Hindi Language

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