Reserve Bank of India came into existence in 1934 through Reserve Bank of India act 1934. It is central monitory authority in India. It has been given power to act as central monitory authority through the same act as well as through Banking Regulation act 1949. It has been given responsibility to control financial system of the country which includes all India financial institutions, scheduled commercial bank, cooperative Banks and non banking financial institutions.
it is the note issuing authority of India.It undertakes a variety of developmental and promotional functions for smooth running of economy in India.It has responsibility of maintaining external value of rupee and holding foreign exchange stock. It publishes exchange control manual and issues instructions and guidelines for its strict compliance. It acts as adviser to central govt.It has added responsibility for ensuring solvency of banking system,quality of assets and safeguarding interests of depositors
As such, it has been vested with wider powers, so as to control the domestic as well as foreign exchange operations.
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