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WHAT IS RESERVE BANK OF INDIA

The Reserve Bank of India is the central Bank of the country entrusted with the task of monetary stability, the management of currency and the supervision of the financial as well as the payment system. In a simple manner we can understand that the Reserve Bank of India controls all banks functioning in India
Reserve Bank is the Bank of all Banking Companies working in India. The reserve Bank of India was constituted during British Raj in India on Ist April .1934.

The Reserve Bank of India was setup on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act 1934 provides the statutory basis of the functioning of the Bank, which commenced operations on Ist April 1935. It was constituted to: -

· Regulate the issue of Bank Notes
· Maintain reserves with a view to securing monetary stability and
· To operate the credit and currency system of the country to its advantage.