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The Reserve Bank of India: history, organisation and functions

ಕನ್ನಡದಲ್ಲಿ ವಿವರಣೆ

RBI and monetary policy · Part 1 / 2 · Fact-checked on · how we check

Written with AI from the sources listed at the bottom of this page, then fact-checked by a separate AI.

Why India's central bank was set up and when it was nationalised, how its Central Board is formed, and each of its functions with the law behind it: currency issue and the minimum reserve system, banker to governments (ways and means advances), banker and regulator of banks, foreign exchange under FEMA, payment systems, its developmental role, and the transfer of its surplus to the Centre.

Each idea is explained first in Kannada (ಕನ್ನಡ), ending with the English and Hindi exam terms, followed by the same point in exam English. UPSC Prelims is in English or Hindi, so understand it in Kannada and revise it in English.

ಊರಿನಲ್ಲಿ ಎಲ್ಲರ ಹಣದ ಲೆಕ್ಕ ನೋಡಿಕೊಳ್ಳುವ ಒಬ್ಬ ಹಿರಿಯರು ಇದ್ದಾರೆ ಎಂದುಕೊಳ್ಳಿ. ದೇಶಕ್ಕೆ ಅಂಥ ಸಂಸ್ಥೆಯೇ ಕೇಂದ್ರ ಬ್ಯಾಂಕ್ — ನಮ್ಮಲ್ಲಿ ಅದು ಭಾರತೀಯ ರಿಸರ್ವ್ ಬ್ಯಾಂಕ್. ಹಣ ಎಂದರೇನು, ಬ್ಯಾಂಕುಗಳು ಅದನ್ನು ಹೇಗೆ ಸೃಷ್ಟಿಸುತ್ತವೆ ಎಂದು ಹಿಂದಿನ ಅಧ್ಯಾಯದಲ್ಲಿ ನೋಡಿದೆವು; ಈಗ ಇಡೀ ವ್ಯವಸ್ಥೆಯನ್ನು ನೋಡಿಕೊಳ್ಳುವ ಸಂಸ್ಥೆ. ಮೊದಲ ಭಾಗ: ಆರ್‌ಬಿಐ ಏಕೆ ಹುಟ್ಟಿತು, ಯಾರು ನಡೆಸುತ್ತಾರೆ, ಕಾನೂನು ಕೊಟ್ಟ ಕೆಲಸಗಳೇನು. ಎರಡನೇ ಭಾಗ: ಅದರ ಮುಖ್ಯ ಕೆಲಸವಾದ ಹಣಕಾಸು ನೀತಿ ಮತ್ತು ಅದರ ಸಾಧನಗಳು. ಪ್ರತಿ ಕೆಲಸವನ್ನೂ ಅದನ್ನು ಕೊಟ್ಟ ಕಾನೂನಿನ ಜೊತೆ ನೋಡುತ್ತೇವೆ. (→ English: central bank · हिन्दी: केंद्रीय बैंक)

In exam EnglishEvery modern economy has one institution standing behind its money and its banks. In India it is the Reserve Bank of India (RBI), the country's central bank. The previous chapter showed what money is and how banks create it; this chapter turns to the body that oversees the whole system. Part 1 covers the RBI itself: why it was created, who runs it, and the jobs the law gives it, from issuing notes to keeping the government's accounts. Part 2 covers its most closely watched job, monetary policy, and the instruments it uses. Each function here is tied to the Act that gives it, because Prelims questions often turn on exactly that link.

ಮೊದಲು ಹಣದ ಕೆಲಸ ಎರಡು ಕೈಗಳಲ್ಲಿತ್ತು: ನೋಟು ಸರ್ಕಾರ ಹೊರಡಿಸುತ್ತಿತ್ತು, ಕೆಲವು ಬ್ಯಾಂಕ್ ಕೆಲಸ ಇಂಪೀರಿಯಲ್ ಬ್ಯಾಂಕ್ ಮಾಡುತ್ತಿತ್ತು. ಮನೆಯಲ್ಲಿ ಅಡುಗೆ ಒಬ್ಬರು, ದಿನಸಿ ಖರೀದಿ ಇನ್ನೊಬ್ಬರು ಬೇರೆಬೇರೆಯಾಗಿ ನೋಡಿದರೆ ಗೊಂದಲವಾಗುವಂತೆ. 1926ರ ಹಿಲ್ಟನ್ ಯಂಗ್ ಆಯೋಗ ಎರಡನ್ನೂ ಒಂದೇ ಸಂಸ್ಥೆಗೆ ಕೊಡಲು ಹೇಳಿತು. 1934ರ ಕಾಯ್ದೆಯಂತೆ 1935 ಏಪ್ರಿಲ್ 1ರಂದು ಆರ್‌ಬಿಐ ಆರಂಭವಾಯಿತು — ಮೊದಲು ಖಾಸಗಿ ಷೇರುದಾರರ ಬ್ಯಾಂಕ್, ಕಚೇರಿ ಕಲ್ಕತ್ತಾದಲ್ಲಿ, 1937ರಲ್ಲಿ ಬಾಂಬೆಗೆ ಸ್ಥಳಾಂತರ. ಸ್ವಾತಂತ್ರ್ಯದ ನಂತರ ದೇಶದ ಅಗತ್ಯಕ್ಕಾಗಿ 1949 ಜನವರಿ 1ರಂದು ರಾಷ್ಟ್ರೀಕರಣ. ಮೊದಲ ಗವರ್ನರ್ ಆಸ್ಬೋರ್ನ್ ಸ್ಮಿತ್, ಮೊದಲ ಭಾರತೀಯ ಗವರ್ನರ್ ಸಿ.ಡಿ. ದೇಶಮುಖ್ (1943). (→ English: nationalisation of the RBI · हिन्दी: आरबीआई का राष्ट्रीयकरण)

In exam EnglishThe case for a separate central bank came from the Royal Commission on Indian Currency and Finance of 1926, usually called the Hilton Young Commission. Control over money was then divided: the government issued currency, while the Imperial Bank of India did some banking work for it. The Commission wanted one body to manage both. The Central Legislature passed the Reserve Bank of India Act in 1934, and the RBI opened on 1 April 1935 as a shareholders' bank owned by private investors, with its central office in Calcutta; the office moved to Bombay in 1937. After independence the government wanted the central bank to serve national policy rather than private owners, so the Reserve Bank (Transfer to Public Ownership) Act, 1948 nationalised it from 1 January 1949. Its first Governor was Sir Osborne Smith; C.D. Deshmukh became the first Indian Governor in 1943.

ದೊಡ್ಡ ಸಹಕಾರ ಸಂಘಕ್ಕೆ ಆಡಳಿತ ಮಂಡಳಿ ಇರುವಂತೆ ಆರ್‌ಬಿಐಗೆ ಸೆಕ್ಷನ್ 8ರ ಪ್ರಕಾರ ಕೇಂದ್ರ ಮಂಡಳಿ ಇದೆ. ಅದರಲ್ಲಿ ಗವರ್ನರ್ ಮತ್ತು ಗರಿಷ್ಠ ನಾಲ್ವರು ಡೆಪ್ಯುಟಿ ಗವರ್ನರ್‌ಗಳು ಪೂರ್ಣಾವಧಿ ಅಧಿಕಾರಿಗಳು; ಜೊತೆಗೆ ಕೇಂದ್ರ ನಾಮನಿರ್ದೇಶನ ಮಾಡುವವರು — ನಾಲ್ಕು ಸ್ಥಳೀಯ ಮಂಡಳಿಗಳಿಂದ (ಮುಂಬೈ, ಕೋಲ್ಕತ್ತಾ, ನವದೆಹಲಿ, ಚೆನ್ನೈ) ನಾಲ್ವರು, ಬೇರೆಬೇರೆ ಕ್ಷೇತ್ರಗಳ ಹತ್ತು ತಜ್ಞರು, ಇಬ್ಬರು ಸರ್ಕಾರಿ ಅಧಿಕಾರಿಗಳು. ಗವರ್ನರ್‌ರನ್ನು ಕೇಂದ್ರ ಐದು ವರ್ಷದವರೆಗೆ ನೇಮಿಸುತ್ತದೆ, ಮರುನೇಮಕ ಸಾಧ್ಯ. ಸೆಕ್ಷನ್ 7ರಡಿ ಗವರ್ನರ್ ಜೊತೆ ಸಮಾಲೋಚಿಸಿ ಸರ್ಕಾರ ನಿರ್ದೇಶನ ಕೊಡಬಹುದು — ಇದು ಮೀಸಲು ಅಧಿಕಾರ, ದಿನನಿತ್ಯದ ಹಿಡಿತವಲ್ಲ. ಬ್ಯಾಂಕ್ ಮೇಲ್ವಿಚಾರಣೆಗೆ 1994ರಲ್ಲಿ ಹಣಕಾಸು ಮೇಲ್ವಿಚಾರಣಾ ಮಂಡಳಿ ಬಂತು. ಲೆಕ್ಕದ ವರ್ಷ ಈಗ ಏಪ್ರಿಲ್–ಮಾರ್ಚ್. (→ English: Central Board of Directors · हिन्दी: केंद्रीय निदेशक बोर्ड)

In exam EnglishUnder section 8 of the RBI Act, the RBI is governed by a Central Board of Directors: the Governor and not more than four Deputy Governors, who are full-time officials, plus directors nominated by the Central Government. Four of these come from the RBI's Local Boards (Mumbai, Kolkata, New Delhi and Chennai), ten are experts from fields such as banking, industry, agriculture and economics, and two are government officials. The Central Government appoints the Governor and Deputy Governors for terms of up to five years, with reappointment allowed. Section 7 lets the government, after consulting the Governor, give the RBI directions in the public interest; it is a reserve power, not a means of daily control. Bank supervision is guided by the Board for Financial Supervision, formed in 1994 as a committee of the Central Board. The RBI's accounting year, once July–June, now runs April–March; 2020-21 was a nine-month transition year.

ನೋಟು ಮುದ್ರಿಸಿ ಚಲಾವಣೆಗೆ ತರುವುದು ಆರ್‌ಬಿಐಯ ಹಳೆಯ ಕೆಲಸ. ಸೆಕ್ಷನ್ 22: ಬ್ಯಾಂಕ್ ನೋಟುಗಳನ್ನು ಆರ್‌ಬಿಐ ಮಾತ್ರ ಹೊರಡಿಸುತ್ತದೆ; ನಾಣ್ಯ ಮತ್ತು ₹1 ನೋಟು ಸರ್ಕಾರದ್ದು. ನೋಟಿನ ಲೆಕ್ಕ ಪ್ರತ್ಯೇಕ 'ಇಶ್ಯೂ ವಿಭಾಗ'ದಲ್ಲಿ — ಮನೆಯಲ್ಲಿ ಹಬ್ಬದ ಖರ್ಚಿನ ಹಣವನ್ನು ಬೇರೆ ಡಬ್ಬಿಯಲ್ಲಿ ಇಟ್ಟಂತೆ. ಮೊದಲು ಹೊರಡಿಸಿದ ನೋಟಿನ ನಿಗದಿತ ಪಾಲು ಚಿನ್ನ ಇರಬೇಕಿತ್ತು. 1956ರ ತಿದ್ದುಪಡಿ 'ಕನಿಷ್ಠ ಮೀಸಲು' ಪದ್ಧತಿ ತಂದಿತು: ಕನಿಷ್ಠ ₹200 ಕೋಟಿ ಚಿನ್ನ ಮತ್ತು ವಿದೇಶಿ ವಿನಿಮಯ, ಅದರಲ್ಲಿ ₹115 ಕೋಟಿ ಚಿನ್ನ. ಅದರ ಮೇಲೆ ಎಷ್ಟು ನೋಟು ಎಂಬುದು ಆರ್ಥಿಕತೆಯ ಅಗತ್ಯದಂತೆ. ಬ್ಯಾಂಕುಗಳ ಕರೆನ್ಸಿ ಚೆಸ್ಟ್ ಮೂಲಕ ಹಂಚಿಕೆ, ಹಳೆಯ ನೋಟು ವಾಪಸ್. 2022ರಿಂದ ಡಿಜಿಟಲ್ ರೂಪಾಯಿ (ಇ₹) ಪ್ರಯೋಗ. (→ English: minimum reserve system · हिन्दी: न्यूनतम आरक्षित प्रणाली)

In exam EnglishManaging the currency is the RBI's oldest function. Section 22 of the RBI Act gives it the sole right to issue bank notes in India; coins and the ₹1 note come from the Government. Section 23 keeps note issue in a separate Issue Department, apart from the Banking Department, so that the assets backing the notes are accounted for on their own. Under the old proportional reserve system those assets had to equal a fixed share of the notes in circulation. An amendment of 1956 brought in the minimum reserve system: the RBI must hold gold and foreign exchange worth at least ₹200 crore, of which at least ₹115 crore must be gold, and above that floor note issue follows the economy's needs rather than the size of the gold stock. The RBI decides how many notes of each denomination are needed, has them printed, distributes them through currency chests kept by banks and withdraws soiled notes. Since 2022 the RBI Act also covers notes in digital form, which allowed the digital rupee (e₹) pilots that began in November and December 2022.

ಸರ್ಕಾರಗಳ ಬ್ಯಾಂಕರ್ ಆರ್‌ಬಿಐ: ಖಾತೆಗಳು, ಸಾಲ ನಿರ್ವಹಣೆ, ಬಡ್ಡಿ ಪಾವತಿ ಎಲ್ಲವೂ ಅದರದ್ದೇ. ಸಂಬಳದ ದಿನ ಬಂತು, ಆದರೆ ತೆರಿಗೆ ಹಣ ಇನ್ನೂ ಬಂದಿಲ್ಲ ಎಂದುಕೊಳ್ಳಿ — ಕೆಲವು ವಾರಗಳ ಅಂತರಕ್ಕೆ ಆರ್‌ಬಿಐ ವೇಸ್ ಅಂಡ್ ಮೀನ್ಸ್ ಮುಂಗಡ ಕೊಡುತ್ತದೆ, ಮೂರು ತಿಂಗಳೊಳಗೆ ಹಿಂತಿರುಗಿಸಬೇಕು. ಮಿತಿ ಮೀರಿದರೆ ಓವರ್‌ಡ್ರಾಫ್ಟ್, ಹೆಚ್ಚು ಬಡ್ಡಿ. 1997ಕ್ಕೆ ಮೊದಲು ಕೇಂದ್ರ ಕೊರತೆಯನ್ನು 'ಆಡ್‌ಹಾಕ್ ಖಜಾನೆ ಬಿಲ್'ಗಳಿಂದ ತುಂಬುತ್ತಿತ್ತು — ಆರ್‌ಬಿಐ ಹೊಸ ಹಣ ಸೃಷ್ಟಿಸಿ ಕೊಳ್ಳುತ್ತಿತ್ತು, ಬೆಲೆ ಏರುತ್ತಿತ್ತು. 1997 ಏಪ್ರಿಲ್ 1ರಿಂದ ಅದು ನಿಂತಿತು. FRBM ಕಾಯ್ದೆ (2003) ಸೆಕ್ಷನ್ 5: 2006-07ರಿಂದ ಕೇಂದ್ರದ ಹೊಸ ಬಾಂಡ್‌ಗಳನ್ನು ಆರ್‌ಬಿಐ ನೇರವಾಗಿ ಕೊಳ್ಳಬಾರದು, ರಾಷ್ಟ್ರೀಯ ವಿಪತ್ತಿನಂಥ ವಿಶೇಷ ಸಂದರ್ಭ ಹೊರತುಪಡಿಸಿ. (→ English: ways and means advances · हिन्दी: अर्थोपाय अग्रिम)

In exam EnglishThe RBI is also banker to the governments. Sections 20 and 21 of the RBI Act require it to receive and pay money for the Central Government and to manage its public debt; section 21A lets it do the same for the states by agreement. It keeps their accounts, sells their treasury bills and dated securities, and services their debt. When spending runs ahead of receipts for a few weeks, it lends through ways and means advances (WMA), temporary advances that section 17(5) requires to be repaid within three months; borrowing above the agreed limit becomes a costlier overdraft. WMA replaced a riskier practice. Until 1997 the Centre covered its deficits with ad hoc treasury bills that the RBI absorbed by creating new money, an automatic monetisation of the deficit that fed inflation. Agreements of 1994 and 1997 ended ad hoc bills from 1 April 1997, and section 5 of the FRBM Act, 2003 barred the RBI from buying the Centre's securities in primary issues from 2006-07, except on special grounds that the Act lists, such as a national calamity.

ನಾವು ಬ್ಯಾಂಕಿನಲ್ಲಿ ಖಾತೆ ಇಡುವಂತೆ ಪ್ರತಿ ಅನುಸೂಚಿತ ಬ್ಯಾಂಕ್ ಆರ್‌ಬಿಐಯಲ್ಲಿ ಖಾತೆ ಇಟ್ಟು ಇತರ ಬ್ಯಾಂಕುಗಳ ಜೊತೆ ಲೆಕ್ಕ ಅಲ್ಲೇ ತೀರಿಸುತ್ತದೆ. ಒಂದು ಉತ್ತಮ ಬ್ಯಾಂಕಿನ ಬಗ್ಗೆ ವದಂತಿ ಹರಡಿ ಎಲ್ಲರೂ ಒಮ್ಮೆಲೇ ಹಣ ತೆಗೆದರು ಎಂದುಕೊಳ್ಳಿ — ಬ್ಯಾಂಕ್ ದಿವಾಳಿಯಲ್ಲ, ಆದರೆ ಆ ಕ್ಷಣ ನಗದು ಇಲ್ಲ. ಆಗ ಕೊನೆಯ ಸಾಲದಾತ ಆರ್‌ಬಿಐ ಸಾಲ ಕೊಟ್ಟು ಕಾಪಾಡುತ್ತದೆ, ಭಯ ಇತರ ಬ್ಯಾಂಕುಗಳಿಗೆ ಹಬ್ಬದಂತೆ. ಬ್ಯಾಂಕಿಂಗ್ ನಿಯಂತ್ರಣ ಕಾಯ್ದೆ 1949ರಡಿ ಪರವಾನಗಿ, ಸಿಇಒ ನೇಮಕಕ್ಕೆ ಅನುಮತಿ, ಬಂಡವಾಳ ನಿಯಮ, ತಪಾಸಣೆ, ದುರ್ಬಲ ಬ್ಯಾಂಕಿಗೆ ನಿರ್ಬಂಧ ಅಥವಾ ವಿಲೀನ. 2020ರ ತಿದ್ದುಪಡಿ ನಗರ ಮತ್ತು ಬಹುರಾಜ್ಯ ಸಹಕಾರಿ ಬ್ಯಾಂಕುಗಳನ್ನು ಹೆಚ್ಚು ನಿಯಂತ್ರಣಕ್ಕೆ ತಂದಿತು. ಬ್ಯಾಂಕೇತರ ಹಣಕಾಸು ಕಂಪನಿಗಳು ಸೆಕ್ಷನ್ 45IA ಪ್ರಕಾರ ಆರ್‌ಬಿಐಯಲ್ಲಿ ನೋಂದಾಯಿಸಬೇಕು. (→ English: lender of last resort · हिन्दी: अंतिम ऋणदाता)

In exam EnglishBanks, in turn, bank with the RBI. Every scheduled bank keeps its cash reserve balance with the RBI and settles payments with other banks through that account. When a sound bank suddenly runs short of cash, say because frightened depositors all withdraw at once, the RBI can lend to it as the lender of last resort, so that a passing shortage does not sink a solvent bank and spread panic to others. Under the Banking Regulation Act, 1949 the RBI is also the main regulator and supervisor of banks: it issues licences, approves the appointment of chief executives, sets capital norms, inspects banks, and can restrict a weak bank's business or arrange its merger. The Banking Regulation (Amendment) Act, 2020 brought urban and multi-state cooperative banks under much fuller RBI regulation. Non-banking financial companies come under Chapter IIIB of the RBI Act, whose section 45IA requires them to register with the RBI before doing business.

ವಿದೇಶಿ ವಿನಿಮಯವನ್ನು ಆರ್‌ಬಿಐ ನಿರ್ವಹಿಸುತ್ತದೆ. ಹಳೆಯ FERA (1973)ಯಲ್ಲಿ ವಿದೇಶಿ ವಿನಿಮಯ ತಪ್ಪು ಎಂದರೆ ಅಪರಾಧ, ಅನುಮತಿ ಇಲ್ಲದ್ದೆಲ್ಲ ನಿಷೇಧ — ಪೊಲೀಸ್ ಠಾಣೆಯ ಧೋರಣೆ. FEMA (1999)ಯಲ್ಲಿ ಹೆಚ್ಚಿನ ಉಲ್ಲಂಘನೆಗಳು ಸಿವಿಲ್ ವಿಷಯ, ವ್ಯಾಪಾರ ಸುಲಭ ಮಾಡುವುದು ಗುರಿ. ಆರ್‌ಬಿಐ ಬಳಿ ದೇಶದ ವಿದೇಶಿ ವಿನಿಮಯ ಮೀಸಲು — ವಿದೇಶಿ ಕರೆನ್ಸಿ ಆಸ್ತಿ, ಚಿನ್ನ, SDR, ಐಎಂಎಫ್‌ನಲ್ಲಿ ಮೀಸಲು ಪಾಲು. ರೂಪಾಯಿ ಮೌಲ್ಯವನ್ನು ಮಾರುಕಟ್ಟೆ ನಿರ್ಧರಿಸುತ್ತದೆ. ವಿದೇಶಿ ಹೂಡಿಕೆದಾರರು ಹಠಾತ್ತಾಗಿ ಹಣ ಹಿಂಪಡೆದು ರೂಪಾಯಿ ಕುಸಿದರೆ, ಆರ್‌ಬಿಐ ಡಾಲರ್ ಮಾರಿ ಏರುಪೇರು ತಗ್ಗಿಸುತ್ತದೆ — ಒಂದು ಸ್ಥಿರ ದರಕ್ಕೆ ಕಟ್ಟಿಹಾಕದೆ. (→ English: foreign exchange reserves · हिन्दी: विदेशी मुद्रा भंडार)

In exam EnglishThe RBI manages foreign exchange under the Foreign Exchange Management Act, 1999 (FEMA), which replaced the Foreign Exchange Regulation Act, 1973 (FERA). FERA treated foreign exchange offences as crimes and assumed that every transaction was banned unless permitted; FEMA treats most violations as civil matters and aims to make external trade and payments easier. Under FEMA the RBI, in consultation with the government, frames the rules for current and capital account transactions and authorises dealers in foreign currency. It is also custodian of India's foreign exchange reserves, made up of foreign currency assets, gold, Special Drawing Rights and the reserve tranche position with the International Monetary Fund. The rupee's exchange rate is market-determined, but the RBI buys or sells dollars to smooth sharp swings. If foreign investors pull money out quickly and the rupee falls steeply, the RBI can sell dollars from its reserves to calm the market, without holding the rupee at any fixed level.

ಹಣ ಒಂದು ಖಾತೆಯಿಂದ ಇನ್ನೊಂದಕ್ಕೆ ಸುರಕ್ಷಿತವಾಗಿ ಹೋಗಬೇಕು. 2007ರ ಪಾವತಿ ಕಾಯ್ದೆ ಆರ್‌ಬಿಐಯನ್ನು ಪಾವತಿ ವ್ಯವಸ್ಥೆಗಳ ನಿಯಂತ್ರಕನನ್ನಾಗಿ ಮಾಡಿತು. ದೊಡ್ಡ ಮೊತ್ತಕ್ಕೆ RTGS — ಪ್ರತಿ ಪಾವತಿ ತಕ್ಷಣ, ಪ್ರತ್ಯೇಕವಾಗಿ; NEFT — ಗುಂಪುಗಳಲ್ಲಿ. ಎರಡನ್ನೂ ಆರ್‌ಬಿಐ ನಡೆಸುತ್ತದೆ; NEFT 2019 ಡಿಸೆಂಬರ್‌ನಿಂದ, RTGS 2020 ಡಿಸೆಂಬರ್‌ನಿಂದ ದಿನದ ಇಪ್ಪತ್ತನಾಲ್ಕು ಗಂಟೆ. ಸಣ್ಣ ಪಾವತಿಗಳಿಗೆ ಆರ್‌ಬಿಐ ಮತ್ತು ಬ್ಯಾಂಕುಗಳ ಸಂಘ 2008ರಲ್ಲಿ NPCI ಸ್ಥಾಪಿಸಿದವು — ಲಾಭರಹಿತ ಕಂಪನಿ; ರುಪೇ, IMPS, 2016ರಲ್ಲಿ ಬಂದ UPI ಅದೇ ನಡೆಸುತ್ತದೆ. ರಸ್ತೆ ನಿಯಮ ಸಂಚಾರ ಪೊಲೀಸ್ (ಆರ್‌ಬಿಐ) ಮಾಡಿದರೆ ಬಸ್ ಓಡಿಸುವುದು ಬೇರೆ ಸಂಸ್ಥೆ (NPCI) ಎಂಬಂತೆ. (→ English: payment systems · हिन्दी: भुगतान प्रणालियाँ)

In exam EnglishMoney also needs safe ways to move between accounts. The Payment and Settlement Systems Act, 2007 makes the RBI the regulator of payment systems, with a Board for Regulation and Supervision of Payment and Settlement Systems overseeing the work. The RBI itself runs the two large interbank systems: Real Time Gross Settlement (RTGS), which settles each high-value payment individually the moment it is made, and National Electronic Funds Transfer (NEFT), which settles in batches. NEFT became available round the clock in December 2019 and RTGS in December 2020. For retail payments, the RBI and the Indian Banks' Association promoted the National Payments Corporation of India (NPCI) in 2008, a not-for-profit company that runs RuPay cards, the Immediate Payment Service (IMPS) and the Unified Payments Interface (UPI), launched in 2016. So the RBI licenses operators and writes the rules, while NPCI and the banks run the everyday retail systems.

ಸ್ವಾತಂತ್ರ್ಯ ಬಂದಾಗ ರೈತರಿಗೆ, ಸಣ್ಣ ಉದ್ಯಮಗಳಿಗೆ ಸಾಲ ಕೊಡುವ ಸಂಸ್ಥೆಗಳು ಕಡಿಮೆ. ಹಾಗಾಗಿ ಆರ್‌ಬಿಐ ಹೊಸ ಸಂಸ್ಥೆಗಳಿಗೆ ತಾಯಿಯಂತೆ ಕೆಲಸ ಮಾಡಿತು: 1964ರಲ್ಲಿ IDBI (ಮೊದಲು ಆರ್‌ಬಿಐಯ ಅಂಗಸಂಸ್ಥೆ), ಅದೇ ವರ್ಷ UTI; 1982ರಲ್ಲಿ ಕೃಷಿ, ಗ್ರಾಮೀಣ ಸಾಲದ ಕೆಲಸ NABARDಗೆ; 1988ರಲ್ಲಿ ರಾಷ್ಟ್ರೀಯ ವಸತಿ ಬ್ಯಾಂಕ್. 1969ರ ಲೀಡ್ ಬ್ಯಾಂಕ್ ಯೋಜನೆ: ಪ್ರತಿ ಜಿಲ್ಲೆಯಲ್ಲಿ ಒಂದು ಬ್ಯಾಂಕ್ ಸಾಲ ಯೋಜನೆಗೆ ಮುಂದಾಳು — ಊರಿನ ಹಿರಿಯಣ್ಣನಂತೆ. ಇಂದು ಆರ್ಥಿಕ ಸೇರ್ಪಡೆ, ಸಾಕ್ಷರತಾ ಅಭಿಯಾನಗಳು. ದೂರುಗಳಿಗೆ 2021 ನವೆಂಬರ್ 12ರಂದು 'ಒಂದು ದೇಶ, ಒಬ್ಬ ಒಂಬುಡ್ಸ್‌ಮನ್' ಯೋಜನೆ — ಬ್ಯಾಂಕ್, ಬ್ಯಾಂಕೇತರ ಹಣಕಾಸು ಕಂಪನಿ, ಪಾವತಿ ಸಂಸ್ಥೆಗಳ ವಿರುದ್ಧ ಒಂದೇ ಕಡೆ ದೂರು. (→ English: Integrated Ombudsman Scheme · हिन्दी: एकीकृत लोकपाल योजना)

In exam EnglishThe RBI was also given a developmental role, because independent India lacked institutions willing to lend to farmers, small industry and long-term projects. It helped build several: the Industrial Development Bank of India, set up in 1964 as an RBI subsidiary; the Unit Trust of India, which began work the same year; the National Bank for Agriculture and Rural Development (NABARD), which took over the RBI's agricultural and rural credit work in 1982; and the National Housing Bank, set up in 1988. Under the Lead Bank Scheme of 1969, one bank in each district leads credit planning there. The same spirit continues in financial inclusion and financial literacy drives. For customers, the Reserve Bank – Integrated Ombudsman Scheme, launched on 12 November 2021, gives one place to complain about banks, non-banking financial companies and payment system participants, replacing three separate schemes with a single 'one nation, one ombudsman' arrangement.

ಆರ್‌ಬಿಐ ಬಳಿಯ ಸರ್ಕಾರಿ ಬಾಂಡ್ ಮತ್ತು ವಿದೇಶಿ ಆಸ್ತಿಗಳ ಮೇಲಿನ ಬಡ್ಡಿಯೇ ಅದರ ಆದಾಯ. ಖರ್ಚು ಮತ್ತು ಮುನ್ನೆಚ್ಚರಿಕೆ ಮೀಸಲು ಕಳೆದು ಉಳಿದ ಲಾಭವನ್ನು ಸೆಕ್ಷನ್ 47ರಂತೆ ಕೇಂದ್ರಕ್ಕೆ ಕೊಡಬೇಕು. ರೈತ ಸುಗ್ಗಿಯ ನಂತರ ಮುಂದಿನ ವರ್ಷದ ಬೀಜಕ್ಕೆ ಸ್ವಲ್ಪ ಎತ್ತಿಟ್ಟು ಉಳಿದದ್ದನ್ನು ಮನೆಗೆ ಕೊಡುವಂತೆ. ಎಷ್ಟು ಎತ್ತಿಡಬೇಕು ಎಂಬುದೇ ಚರ್ಚೆ. ಬಿಮಲ್ ಜಲಾನ್ ಸಮಿತಿ (2019): ಆಸ್ತಿ-ಹೊಣೆ ಪಟ್ಟಿಯ 5.5–6.5% ಆಕಸ್ಮಿಕ ಅಪಾಯ ಮೀಸಲು; ಅದರಂತೆ 2019 ಆಗಸ್ಟ್‌ನಲ್ಲಿ ₹1.76 ಲಕ್ಷ ಕೋಟಿ. 2025 ಮೇನಲ್ಲಿ ವ್ಯಾಪ್ತಿಯನ್ನು 4.5–7.5%ಕ್ಕೆ ಬದಲಿಸಿ, 7.5% ಇಟ್ಟು, 2024-25ಕ್ಕೆ ₹2.69 ಲಕ್ಷ ಕೋಟಿ ವರ್ಗಾವಣೆ. ಬಜೆಟ್‌ನಲ್ಲಿ ಇದು ತೆರಿಗೆಯೇತರ ಆದಾಯ. (→ English: surplus transfer · हिन्दी: अधिशेष अंतरण)

In exam EnglishThe RBI earns mainly from interest on the government securities and foreign assets it holds. After meeting its costs and providing for reserves and contingencies, section 47 of the RBI Act requires it to pay the balance of its profits to the Central Government. How large a cushion to keep is debated, since sharp moves in the rupee or in bond prices can cause the RBI losses. The Expert Committee to Review the Extant Economic Capital Framework, chaired by Bimal Jalan, reported in 2019 and recommended a Contingent Risk Buffer of 5.5 to 6.5 per cent of the RBI's balance sheet; on that basis ₹1.76 lakh crore was transferred to the government in August 2019. In May 2025 the Central Board widened the buffer range to 4.5 to 7.5 per cent, kept the buffer at 7.5 per cent and approved a transfer of ₹2.69 lakh crore for 2024-25. In the Union Budget this surplus is a non-tax revenue receipt.

ಒಟ್ಟಾರೆ ಆರ್‌ಬಿಐಗೆ ಹಲವು ಪಾತ್ರಗಳು: ನೋಟು ಹೊರಡಿಸುವುದು, ಸರ್ಕಾರಗಳ ಬ್ಯಾಂಕರ್, ಬ್ಯಾಂಕುಗಳ ಬ್ಯಾಂಕರ್ ಮತ್ತು ನಿಯಂತ್ರಕ, ವಿದೇಶಿ ವಿನಿಮಯ ವ್ಯವಸ್ಥಾಪಕ, ಪಾವತಿಗಳ ಮೇಲ್ವಿಚಾರಕ, ಸಂಸ್ಥೆಗಳ ನಿರ್ಮಾತೃ. ಮನೆಯ ಯಜಮಾನನಿಗೆ ಹಲವು ಜವಾಬ್ದಾರಿ ಇದ್ದರೆ ಕೆಲವೊಮ್ಮೆ ಅವು ಒಂದಕ್ಕೊಂದು ಡಿಕ್ಕಿ ಹೊಡೆಯುವಂತೆ — ಸಾಲ ನಿರ್ವಾಹಕನಾಗಿ ಕಡಿಮೆ ಬಡ್ಡಿ ಬಯಸುತ್ತದೆ, ಬೆಲೆ ಸ್ಥಿರತೆಗೆ ಬಡ್ಡಿ ಏರಿಸಬೇಕಾಗಬಹುದು. ಅದಕ್ಕೇ 2016ರಿಂದ ಕಾನೂನು ಹಣಕಾಸು ನೀತಿಗೆ ಸ್ಪಷ್ಟ ಪ್ರಾಥಮಿಕ ಗುರಿ ಮತ್ತು ದರ ನಿರ್ಧರಿಸುವ ಸಮಿತಿ ಕೊಟ್ಟಿದೆ — ಅದು ಎರಡನೇ ಭಾಗ. ಪ್ರತಿ ಕೆಲಸಕ್ಕೂ: ಯಾವ ಕಾಯ್ದೆ ಕೊಟ್ಟಿತು, ಆರ್‌ಬಿಐ ಒಬ್ಬಂಟಿಯಾಗಿ ಮಾಡುತ್ತದೆಯೇ ಸರ್ಕಾರದ ಜೊತೆಯೇ? (→ English: monetary policy · हिन्दी: मौद्रिक नीति)

In exam EnglishPut together, the RBI wears many hats: issuer of currency, banker to governments, banker and regulator of banks, manager of foreign exchange, overseer of payments and builder of institutions. The table lists the main functions with the law behind each. Some roles pull against each other. As manager of government debt the RBI would like borrowing to stay cheap, but price stability may require higher interest rates; as regulator it wants banks safe, but as lender of last resort it may have to support them in a crisis. Such tensions are one reason why the law since 2016 gives monetary policy a clear primary objective and a committee to set the policy rate, the subject of Part 2. For each function in this part, ask which Act gives the power and whether the RBI acts alone or together with the government.
Main functions of the RBI and the law behind each
FunctionMain legal basisWhat it involves
Currency issueRBI Act s.22, s.23; minimum reserve system (1956)Sole issuer of bank notes; ₹1 note and coins issued by the Government
Banker to governmentsRBI Act ss.20, 21, 21A; s.17(5)Accounts, debt management, ways and means advances (repayable within 3 months)
Banker to banksRBI Act s.42; s.17Holds banks' cash reserves, settles interbank payments, lender of last resort
Regulator of banksBanking Regulation Act, 1949 (amended 2020)Licences, inspection, capital norms; fuller control of cooperative banks since 2020
Regulator of NBFCsRBI Act, Chapter IIIB (s.45IA)Registration and regulation of non-banking financial companies
Foreign exchangeFEMA, 1999Rules for forex transactions; custodian of forex reserves
Payment systemsPayment and Settlement Systems Act, 2007Regulates payment systems; runs RTGS and NEFT
Monetary policyRBI Act, Chapter IIIF (added 2016)Price stability while keeping growth in mind (Part 2)

Exam traps

Recap

Practice questions

Q1. In which year did the Reserve Bank of India pass into public ownership?

  1. 1935
  2. 1949
  3. 1955
  4. 1969
Show answer

Answer: B. 1949

The Reserve Bank (Transfer to Public Ownership) Act, 1948 nationalised the RBI from 1 January 1949. 1935 is when it began work as a shareholders' bank, 1955 is when the State Bank of India was formed, and 1969 is when 14 commercial banks were nationalised.

Q2. Consider the following statements about note issue in India:
1. Under the minimum reserve system the RBI must hold gold and foreign exchange of at least ₹200 crore, of which gold must be worth at least ₹115 crore.
2. The RBI issues the ₹1 note.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is right: that is the floor set by the 1956 amendment. Statement 2 is wrong: the ₹1 note, like coins, is issued by the Government of India. So '2 only', 'both' and 'neither' are wrong.

Q3. Consider the following statements:
1. Ways and means advances from the RBI to the Central Government must be repaid within three months.
2. Before April 1997 the Centre could finance its deficit through ad hoc treasury bills taken up by the RBI.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: C. Both 1 and 2

Both are right. Section 17(5) of the RBI Act limits ways and means advances to three months, and ad hoc treasury bills were used to monetise the deficit until agreements ended them from 1 April 1997. So '1 only', '2 only' and 'neither' are wrong.

Q4. Match List I (law) with List II (what it deals with):
List I
A. Payment and Settlement Systems Act, 2007
B. Foreign Exchange Management Act, 1999
C. Banking Regulation Act, 1949
D. Chapter IIIB of the RBI Act, 1934
List II
1. Registration of non-banking financial companies
2. Regulation of payment systems
3. Foreign exchange transactions
4. Licensing of banks
Select the correct answer using the code given below:

  1. A-2, B-3, C-4, D-1
  2. A-3, B-2, C-1, D-4
  3. A-2, B-3, C-1, D-4
  4. A-4, B-3, C-2, D-1
Show answer

Answer: A. A-2, B-3, C-4, D-1

The 2007 Act covers payment systems (A-2), FEMA covers foreign exchange (B-3), the Banking Regulation Act covers bank licensing (C-4), and Chapter IIIB (s.45IA) requires NBFCs to register (D-1). The second code swaps payments and forex, the third swaps banks and NBFCs, and the fourth gives payments to the Banking Regulation Act.

Q5. The Unified Payments Interface (UPI) is operated by which one of the following?

  1. The Reserve Bank of India
  2. The National Payments Corporation of India
  3. The Securities and Exchange Board of India
  4. NABARD
Show answer

Answer: B. The National Payments Corporation of India

UPI, launched in 2016, is run by NPCI, the not-for-profit company promoted by the RBI and the Indian Banks' Association in 2008. The RBI regulates payment systems and itself runs RTGS and NEFT, but not UPI; SEBI regulates securities markets; NABARD deals with rural credit.

Q6. Consider the following statements about the RBI's Central Board:
1. The Governor and the Deputy Governors are appointed by the Central Government for terms not exceeding five years.
2. The Board may have up to six Deputy Governors.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is right under section 8 of the RBI Act. Statement 2 is wrong: the Act allows not more than four Deputy Governors. So '2 only', 'both' and 'neither' are wrong.

Q7. The Bimal Jalan Committee (2019) made recommendations on which one of the following?

  1. The flexible inflation targeting framework
  2. The economic capital framework of the RBI
  3. The licensing of small finance banks
  4. The base year of the GDP series
Show answer

Answer: B. The economic capital framework of the RBI

The Jalan Committee reviewed how much capital and risk buffer the RBI should hold and how much surplus it should pass to the government. Inflation targeting came from the Urjit Patel Committee (2014); small finance bank licensing and the GDP base year were not its subject.

Q8. Consider the following statements:
1. As lender of last resort, the RBI lends to a sound bank facing a sudden shortage of cash.
2. The Reserve Bank – Integrated Ombudsman Scheme covers complaints against public sector banks only.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is right: that is the purpose of the lender-of-last-resort role. Statement 2 is wrong: the 2021 scheme covers banks in general, non-banking financial companies and payment system participants. So '2 only', 'both' and 'neither' are wrong.

All partsNext: Part 2 →

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