what is the reserve bank of india rbi 
the reserve bank of india rbi is the central bank of india which began operations on apr 1 1935 under the reserve bank of india act the reserve bank of india uses monetary policy to create financial stability in india and it is charged with regulating the country s currency and credit systems understanding the reserve bank of india rbi located in mumbai the rbi serves the financial market in many ways the bank sets the overnight interbank lending rate the mumbai interbank offer rate mibor serves as a benchmark for interest rate related financial instruments in india the main purpose of the rbi is to conduct consolidated supervision of the financial sector in india which is made up of commercial banks financial institutions and non banking finance firms initiatives adopted by the rbi include restructuring bank inspections introducing off site surveillance of banks and financial institutions and strengthening the role of auditorsfirst and foremost the rbi formulates implements and monitors india s monetary policy the bank s management objective is to maintain price stability and ensure that credit is flowing to productive economic sectors the rbi also manages all foreign exchange under the foreign exchange management act of 1999 this act allows the rbi to facilitate external trade and payments to promote the development and health of the foreign exchange market in india 2the rbi acts as a regulator and supervisor of the overall financial system this injects public confidence into the national financial system protects interest rates and provides positive banking alternatives to the public finally the rbi acts as the issuer of national currency for india this means that currency is either issued or destroyed depending on its fit for current circulation this provides the indian public with a supply of currency in the form of dependable notes and coins a lingering issue in india the current governor is shri shaktikanta das and he has four deputy governors that report to him directly 3reserve bank of india departmentsthe reserve bank of india has a number of departments each of which have a very specific purpose an entire list of departments can be found on the reserve bank of india s site some of the key departments within the reserve bank of india along with what that department does includes but isn t limited to reserve bank of india operationsthe rbi was originally set up as a private entity but it was nationalized in 1949 the reserve bank is governed by a central board of directors appointed by the national government the government has always appointed the rbi s directors and this has been the case since the bank became fully owned by the government of india as outlined by the reserve bank of india act directors are appointed for a period of four years 5according to its website the current focus of the rbi is to continue its increased supervision of financial institutions while dealing with legal issues related to bank fraud and consolidated accounting and attempting to create a supervisory rating model for its banks 5reserve bank of india and communicationthe reserve bank of india acknowledges the pivotal role that communication plays in modern central banking on its website it emphasizes a collegial approach to monetary policy decision making the reserve bank of india s communication policy adheres to guiding principles of relevance transparency clarity comprehensiveness and timeliness with the aim of enhancing public understanding of developments across its various domains 6in its medium term vision statement titled utkarsh 2022 the rbi delineates objectives including excellence in statutory functions enhanced public trust increased relevance nationally and globally transparent governance modern infrastructure and a skilled workforce strategies to achieve these objectives involve consolidating past gains leveraging emerging opportunities and addressing future challenges through tangible time bound milestones 6the rbi commits to reviewing its communication policy every three years reflecting its recognition of communication as a dynamic process crucial for effective central banking operations 6