Reserve Bank of India (RBI) Kya Hai? | Printing Press, Government Mint, RBI Function By Ashish Sir

Adda247

24 Jan 202314:15

Summary

TLDRThe video hosted by Ashish Gautam on Adda 24/7 discusses various aspects of the Reserve Bank of India (RBI). It explains the history, functions, and structure of RBI, including its role as India's central bank. The video touches upon the RBI's establishment in 1935, its nationalization in 1949, and its governance structure with one governor and four deputy governors. It also covers the process of printing currency notes, coin minting, and the RBI's role in monetary policy and financial regulation. The session provides valuable insights into India's financial system.

Takeaways

🏛️ The Reserve Bank of India (RBI) is the central bank of India, established in 1935 and nationalized in 1949.
🌏 RBI was initially headquartered in Calcutta but later moved to Mumbai, Maharashtra.
🏦 RBI is often referred to as the 'bank of banks' and performs various regulatory and developmental functions for the banking sector.
📜 The printing of currency notes is managed by four presses: Mysore, Salboni, Devas, and Nashik.
🏭 The Security Printing and Minting Corporation of India Limited (SPMCIL) oversees the printing of currency notes and coins.
💼 RBI's Central Board has a Governor and four Deputy Governors, along with other members representing various sectors.
💵 The highest denomination of Indian currency notes is 10,000 rupees.
🏦 RBI also acts as a banker to the government, providing financial assistance and managing fiscal policy.
📊 RBI is responsible for determining key monetary policy rates such as repo rate, reverse repo rate, and others.
🏢 RBI's functions include being a lender of last resort and managing foreign exchange reserves.

Q & A

What is the role of the Reserve Bank of India (RBI)?
-The Reserve Bank of India (RBI) is the central bank of India, responsible for regulating the country's banking system, implementing monetary policy, and ensuring financial stability.
When was the Reserve Bank of India established?
-The Reserve Bank of India was established in 1935 under the provisions of the Reserve Bank of India Act, 1934.
Where was the RBI's headquarters initially located, and where is it now?
-The RBI's headquarters was initially located in Kolkata, but it was moved to Mumbai in 1937.
When was the RBI nationalized, and what does nationalization mean in this context?
-The RBI was nationalized in 1949, meaning it transitioned from private ownership to being under the control of the Government of India.
Which commission recommended the establishment of the RBI?
-The Hilton Young Commission recommended the establishment of the Reserve Bank of India.
How many members are there in the Central Board of the RBI, and who are they?
-The Central Board of the RBI consists of 21 members, including the Governor, 4 Deputy Governors, 4 members from local boards, 2 representatives from the Ministry of Finance, and 10 members nominated by the Government of India.
Who are the current Deputy Governors of the RBI?
-As of now, the four Deputy Governors of the RBI are Mahesh Kumar Jain, T. Rabi Sankar, M. Rajeshwar Rao, and one vacant position.
Who was the first Governor of the RBI, and who was the first Indian Governor?
-The first Governor of the RBI was Sir Osborne Smith, and the first Indian Governor was C. D. Deshmukh.
Where are the RBI's currency printing presses located?
-The RBI's currency printing presses are located in Mysore and Salboni under the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), while the Government of India's presses are located in Dewas and Nashik under the Security Printing and Minting Corporation of India Limited (SPMCIL).
Where are India's coin mints located?
-India's coin mints are located in Mumbai, Kolkata, Hyderabad, and Noida, all under the Security Printing and Minting Corporation of India Limited (SPMCIL).

Outlines

00:00

🏛️ Introduction to the RBI and its Functions

The paragraph introduces the viewer to the concept of a central bank, specifically focusing on the Reserve Bank of India (RBI). It explains that every country has a central bank responsible for regulating the banking system. The RBI is highlighted as India's central bank, established in 1935 under the Reserve Bank of India Act. The headquarter was initially in Kolkata but later moved to Mumbai. The video promises a detailed discussion on the RBI's functions, including note printing and coin minting, and encourages viewers to watch till the end.

05:01

🏦 RBI's History and Structure

This paragraph delves into the history of the RBI, mentioning its establishment in 1935 and nationalization in 1949. It discusses the RBI's central board, which includes a governor, four deputy governors, and members from local boards. The paragraph also covers the printing presses under the government of India and the RBI, responsible for printing currency notes and coins. It mentions four printing presses located in Mysore, Salboni, Devas, and Nasik, and explains the signing authority on the ₹1 note issued by the RBI.

10:16

💼 RBI's Monetary Policy and Functions

The final paragraph discusses the RBI's role in formulating monetary policy, including setting repo rates, bank rates, reverse repo rates, and other financial instruments. It also touches upon the RBI's function as a bank to the government, providing credit to banks, and acting as the lender of last resort. The paragraph concludes with information about the video series, including the schedule and offers for joining the classes, and encourages viewers to provide feedback.

Mindmap

Keywords

💡Reserve Bank of India (RBI)

The Reserve Bank of India is the central banking institution of India, which plays a crucial role in the country's monetary policy framework. It was established in 1935 and nationalized in 1949. RBI is responsible for the issue of currency, regulation of the banking system, and management of foreign exchange. In the script, it is mentioned as the central bank that oversees the printing of notes and minting of coins in India.

💡Printing Press

A printing press is a facility where currency notes are printed. The script mentions that there are four printing presses in India located in Mysore, Salboni, Devas, and Nashik. These presses are under the control of the RBI and the Government of India, and they are responsible for the production of banknotes.

💡Coin Mint

A coin mint is a facility where coins are produced. The script refers to four coin mints in India located in Mumbai, Kolkata, Hyderabad, and Noida. These mints are operated by the Government of India and are responsible for the minting of coins.

💡Currency

Currency refers to the money in the form of banknotes and coins that is in use in a particular country. The script discusses the denominations of Indian currency, ranging from ₹1 to ₹10,000, and how they are issued by the RBI.

💡Central Board

The Central Board is the principal decision-making body of the RBI, consisting of various members including the Governor and Deputy Governors. The script mentions that the Central Board has a total of 21 members, including officials from the RBI and nominees from the finance ministry.

💡Deputy Governor

Deputy Governors are the key officials who assist the Governor of the RBI in managing the central bank's affairs. The script provides an example of the current Deputy Governors, including Mahesh Kumar Jain and T. Rabi Shankar.

💡Nationalization

Nationalization refers to the process by which private enterprises are converted into public ownership by the government. The script mentions that the RBI was nationalized in 1949, which means it became fully owned by the Government of India.

💡Hilton Young Commission

The Hilton Young Commission, also known as the Royal Commission on Indian Currency, was a commission that recommended the establishment of the RBI as the central bank. The script refers to this commission as the authority that recommended the RBI's establishment.

💡Local Boards

Local Boards are regional offices of the RBI that help in the administration of the central bank's functions. The script mentions that there are four local boards, each contributing a member to the Central Board of the RBI.

💡Financial Secretary

The Financial Secretary is a senior official in the Ministry of Finance of the Government of India. The script mentions that the signature of the Finance Secretary appears on the ₹1 note, signifying the government's role in currency issuance.

💡Monetary Policy

Monetary policy refers to the actions of a central bank, such as the RBI, to control the supply of money in the economy. The script discusses how the RBI sets key rates like the repo rate, reverse repo rate, and manages other financial instruments to maintain monetary stability.

Highlights

The Reserve Bank of India (RBI) serves as the central bank of India and plays a critical role in regulating the country's banking system.

The RBI was established in 1935 under the provisions of the Reserve Bank of India Act, 1934.

Initially headquartered in Kolkata, the RBI's headquarters was moved to Mumbai in 1937.

The RBI was nationalized in 1949, transferring ownership from private entities to the Government of India.

The RBI served as the central bank for two other countries—Pakistan and Myanmar—before they established their own central banks.

The Hilton Young Commission was responsible for the recommendation that led to the establishment of the RBI.

The RBI operates with a Central Board of Directors, which includes one Governor, four Deputy Governors, and representatives from local boards and the Ministry of Finance.

Current RBI Governor is Shaktikanta Das, with four Deputy Governors, including Mahesh Kumar Jain, T. Rabi Shankar, and M. Rajeshwar Rao.

India has four currency printing presses located in Mysore, Salboni, Dewas, and Nashik.

The RBI's subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited, manages the printing of currency notes in India.

Coins in India are minted in four locations: Mumbai, Kolkata, Hyderabad, and Noida, under the Security Printing and Minting Corporation of India (SPMCIL).

One rupee notes are issued by the Government of India and bear the signature of the Finance Secretary, while all other denominations are issued by the RBI with the Governor's signature.

The maximum denomination of Indian currency notes can go up to ₹10,000 as of current regulations.

The RBI also serves as the government's banker, providing financial assistance to both the central and state governments.

RBI is responsible for monetary policy formulation, including setting key rates like the repo rate, reverse repo rate, CRR, and SLR.