The Reserve Bank of India (RBI) is the central bank of India, which was established on April 1, 1935, under theReserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the country's currency and credit systems.
We all have a doubt what is meant by Hilton-Young Commission, right? It is a commission of Inquiry which is appointed in 1926 to look into the possible closer union of the British Territories in East and Central Africa. This commission had recommended to the government to create a central bank in the country. On the basis of mainly this commission, the RBI act was passed.
Original Headquarters of RBI:-
The Original Headquarters of RBI is located in Kolkata and later in the year of 1937, it is shifted as Shahid Bhagat Singh Marg, Mumbai, which serves as Current Headquarters of RBI.
The Journey of RBI(Reserve Bank of India).
| 1926 | The Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India |
| 1927 | A bill to give effect to the above recommendation was introduced in the Legislative Assembly but was later withdrawn due to lack of agreement among various sections of people. |
| 1933 | The White Paper on Indian Constitutional Reforms recommended the creation of a Reserve Bank a fresh bill was introduced in the Legislative Assembly. |
| 1934 | The Bill was passed and received the Governor General’s assent. |
| 1935 | Reserve Bank commenced operations as India’s central bank on April 1 as a private shareholders’ bank with a paid up capital of rupees five crore |
| 1942 | Reserve Bank ceased to be the currency issuing authority of Burma. |
| 1947 | Reserve Bank stopped acting as banker to the Government of Burma. |
| 1948 | Reserve Bank stopped rendering central banking services to Pakistan. |
| 1949 | Banking Regulation Act was Enacted |
| 1951 | India Embarked in the Planning Era |
| 1966 | The cooperative Banks Came within the regulations of the RBI |
| The rupee was Devaluated for the first time. | |
| 1969 | Nationalization of 14 Banks was a Turning Point in the history of Indian Banking. |
| 1973 | The Foreign Exchange Regulation Act was amended and exchange control was strengthened. |
| 1974 | The Priority Sector Advance Targets Started Getting Fixed |
| 1975 | Regional Rural Banks Started |
| 1985 | The Sukhamoy Chakravarty and Vaghul Committee reports embarked the era of Financial Market Reforms in India. |
| 1991 | India came under the Balance of Payment crisis and RBI pledged Gold to shore up reserves. Rupee was evaluated |
| 1991-1992 | Economic Reforms Started in India |
| 1993 | Exchange Rate Became Market Determined |
| 1994 | Board for Financial Supervision was set up |
| 1997 | The regulations of the Non-Banking Financial Companies got Strengthened |
| 1998 | Multiple Indicator Approach for monetary policy was adopted for the first time. |
| 2000 | The Foreign Exchange Management Act (FEMA) replaced the erstwhile FERA. |
| 2002 | The Clearing Corporation of India Ltd Started operation. |
| 2003 | Fiscal Responsibility and Budget Management Act (FRBMA) enacted |
| 2004 | Liquidity Adjustment Facility (LAF) started working fully. |
| Market Stabilization Scheme (MSS) was launched. | |
| Real Time Gross Settlement (RTGS) started working. | |
| 2006 | Reserve Bank of India was empowered to regulate the money, forex, G-Sec, and Gold related security markets. |
| 2007 | Reserve bank of India was empowered to regulate the Payment systems. |
