Reserve Bank of India

Reserve Bank of India
General Information
Name of Financial Institution	Reserve Bank of India
Headquarter	Mumbai
Governor of RBI	Raghuram Rajan
Term of RBI Governor	The term of RBI governor is for 3 years and appointed by GOI
Year Established	1 April, 1935
Overview
RBI was established on 1 April 1935 with the sole aim to work as banking sector regulator .RBI was nationalized in 1949.RBI regulate the banking sector (government and private banks) by banking reglation act 1949 and RBI act 1935 which entrusted responsibility on the RBI to work foru the enhancement of banking sector in India .RBI is the sole authority to issue banking licenses to entities who want to open bank in India , and if any bank want to open new branch it has to be take prior approval from RBI. The main aim of RBI is to provide banking services to the last mile of country .To full this initiative RBI has started financial inclusion program .In this RBI mandated all banks in India to open at least 25 percent braches in rural areas. RBI also ensure that adequate credit is provide to rural areas by priority sector lending In this RBI has mandated all banks including foreign banks working in India to provide 40 percent of their loans to priority sector like agriculture, student loans etc .If any bank found violating RBI policy ,it has power to take action against it . RBI do supervision functions and regular checks to ensure that financial health of banks is maintained .RBI ensure that all banks follow the government guidelines for the banking sector. If any bank fou+B29nd indulging in activities against people interest and violating government polices RBI can fine bank including private banks.
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