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Reserve Bank Of India
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The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. It has its central office at Mumbai since inception and though originally privately owned, since nationalisation in 1949 it is fully owned by the Government of India.
The nationalisation of the Reserve bank has converted its into a national constitution with all the financial controlling powers.
The Reserve Bank of India is the Central banking institution having the main functions:
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It is the sole authority for issuing bank notes.
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It is the supervisory body for all banking operations in India.
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It supervises and administers exchange control and banking regulations and administers the Government's policy.
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RBI only grants licenses for new banks and new bank branches.
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RBI only issues banking licenses to the foreign banks operating in India.
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RBI approves the licenses of operation to the private banks.
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