The Reserve Bank of India (RBI), established through the Reserve Bank of India Act, 1934, commenced operations in 1935. Unlike many other central banks, with a sole mandate of inflation targeting, RBI wears many hats - monetary policy authority, supervisor and regulator of the financial system, manager of foreign exchange and issuer of currencies, among others.
On Thursday, Prime Minister Narendra Modi will be in Mumbai to commemorate the central bank turning 80. Business Standard takes a look at RBI's 80-year journey:
THE CONCEPT OF A CENTRAL BANK (1925 - 1934)
DECADE 1: THE JOURNEY BEGINS (1935 - 1944)
DECADE 2: THE EARLY YEARS (1945 - 1954)
DECADE 3: BUILDING INSTITUTIONS (1955 - 1964)
DECADE 4: THE ERA OF NATIONALISATION OF BANKS (1965 - 1974)
DECADE 5: THE PERIOD OF EXPANSION OF BANKING BUSINESS (1975 - 1984)
DECADE 6: THE PERIOD OF ECONOMIC LIBERALISATION (1985 - 1994)
DECADE 7: THE ERA OF CRISIS AND REFORMS (1995 - 2004)
DECADE 8: CONSOLIDATING THE GAINS AND TACKLING INFLATION (2005 - 2015)
GOVERNORS & THEIR TENURES
RBI AND THE LAW
The Reserve Bank of India (RBI) was established on April 1, 1935, in accordance with the provisions of the RBI Act, 1934. However, there are several other Acts that govern the functioning of India's central bank. Here are the Acts governing RBI's various functions.
UMBRELLA ACTS:
- RBI Act, 1934: It governs the central bank's functions**
- Banking Regulation Act, 1949: It governs the financial sector.
ACTS GOVERNING SPECIFIC FUNCTIONS:
- Public Debt Act, 1944/Government Securities Act (proposed): Governs the government debt market
- Securities Contract (Regulation) Act, 1956: It regulates the government securities market.
- Indian Coinage Act, 2011: Governs laws related to currency and coins
- Foreign Exchange Regulation Act, 1973 / Foreign Exchange Management Act, 1999: Governs foreign exchange market
- Payment and Settlement Systems Act, 2007: Provides for regulation and supervision of payment systems in India
- Government Securities Regulations, 2007
- Companies Act, 2013: Governs banks as companies
- Banking Companies (Acquisition and Transfer of Undertakings) Act 1970/1980: On nationalisation of banks
- Bankers' Books Evidence Act
- Banking Secrecy Act
- Negotiable Instruments Act, 1881
- State Bank of India Act, 1954
- The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
- The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
- National Bank for Agriculture and Rural Development Act
- National Housing Bank Act
- Deposit Insurance and Credit Guarantee Corporation Act
Source: RBI
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