DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name Staff Member : P. BADARINARAYANA
Designation : Sr. Lecturer
Branch : DCCP
Institute : Govt. Polytechnic, NELLORE
Year/Semester : VI Semester
Subject : BANKING II
Sub. Code : CCP-604(B)
Topic : Reserve Bank of India
Duration : 50 Mts.
Sub Topic : Evolution of Reserve Bank of India
Teaching Aids : Animations
CCP604(B)48 1
Objective :

On completion of this period, the student

would be able to
 Comprehend the Evolution of Reserve Bank of
India.

CCP604(B)48 2
Introduction

In the last lesson we have seen the

Selective Credit Controls adopted by the
Reserve Bank of India.
 Today we will see the Evolution of Reserve
Bank of India.

CCP604(B)48 3
Evolution Of Reserve Bank of India

 The RBI was established on April 1st

1935 by an act of parliament i.e
Reserve Bank Of India Act, 1934
 It was originally started as a share
holders bank with a share capital of
Rs. 5crores divided into 1lakh fully
paid shares of Rs.100/- each

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Evolution Of Reserve Bank of India
 The RBI was nationalized under RBI Act of
1948 ( Transferred to public ownership)
 It was nationalized to have close integration
between the monetary and credit policies of
the bank and the fiscal policy of the
Government
 The entire share capital was acquired by
the Central Government and paid
compensation to all shareholders on 1-1-
1949
CCP604(B)48 5
Evolution Of Reserve Bank of India
From 1st January, 1949 the Reserve Bank of India
started functioning as a State owned and State
controlled Central Bank of the Country.

The Bank’s affairs are regulated by a Central Board

of Directors consisting of twenty members, namely,
 A Governor
 Four Deputy Governors

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Evolution Of Reserve Bank of India
Fourteen directors
• 10 directors nominated by Government of
India
• 4 Directors nominated each one from the
four local boards
 One Government official from Ministry of
Finance

CCP604(B)48 7
Evolution Of Reserve Bank of India

 It is necessary for the Central Board to

have at least six meetings in a year
and not less than one in a quarter.
 For each one of the four regional
areas of the country, there is a local
board having head quarters at
Mumbai, Kolkata, Delhi and Chennai.

CCP604(B)48 8
Evolution Of Reserve Bank of India

 A local board consists of five

members appointed by the Central
Government.
 The functions of the local boards are
to advise the central Board on such
matters as may generally or
specifically be referred to them and to
perform such duties as the Central
Board may delegate to them.

CCP604(B)48 9
Evolution Of Reserve Bank of India

The Central Office of the Reserve Bank

of India is located in Mumbai

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Summary

We have discussed the

 Evolution of RBI
 RBI was established on 1-4-1935 as a
shareholders bank
 It was nationalized later as per RBI Act 1948
 Its head office is located in Mumbai
 It has 4 regional offices in Mumbai, Kolkata,
Delhi & Chennai
CCP604(B)48 11
Frequently Asked Questions

1. Explain the evolution of Reserve Bank of India.

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