BANKS → RESERVE BANK OF INDIA (RBI) Flashcards
What was the status of bank monitoring in India in 1913?
In 1913, commercial banks in India were required to register under the Companies Act. However, the monitoring of these banks was considered lax, with no requirements for CRR (Cash Reserve Ratio), SLR (Statutory Liquidity Ratio), or adherence to BASEL Norms.
What was the key recommendation made by the Royal Commission on Indian Currency in 1926?
The Royal Commission, also known as the Hilton Young Commission, recommended the establishment of a central bank for India, which was to be named the ‘Reserve Bank of India’.
How did the Great Depression in the USA impact the Indian banking sector?
The Great Depression, which began in 1929, led to the collapse of over 450 banks in India. This crisis prompted the British Indian Government to seriously consider the establishment of the Reserve Bank of India (RBI).
When was the Reserve Bank of India Act passed, and what did it entail?
The Reserve Bank of India Act was enacted in 1934. It laid the foundation for the creation and operational framework of the RBI as the central bank of India.
When did the RBI commence operations, and who was its first Governor?
The RBI became operational on April 1st, 1935. Sir Osborne Smith served as its first Governor.
Who was the first Indian Governor of the RBI, and what international conference did he attend?
C.D. Deshmukh became the first Indian Governor of the RBI during the period of 1943-49. He participated in the Bretton Woods Conference in the USA in 1944.
What was the RBI transfer of ownership act 1948, and how did it change the RBI’s accountability?
The RBI transfer of ownership act 1948 was a significant event where all private investors’ shares were transferred to the Government of India. This act made the RBI Governor answerable to the Parliament and obligated the RBI to pay dividends to the Government from its profits.
What powers were granted to the RBI by the Banking Regulation Act?
The Banking Regulation Act empowered the RBI with several powers, including:
Issuing licenses to companies to open banks
Granting permission for banks to open new branches
Prescribing auditing norms
Setting liquidity norms for banks such as SLR
Protecting the interest of depositors
Forcing the elimination or merger of weak banks
What is the significance of the banking regulation ordinance 2020?
The banking regulation ordinance 2020 is a recent development that focuses on addressing bad loans and other pressing issues in the banking sector.
How many Non-Official Directors in the RBI Central Board are Government officials?
There are 2 Government officials who serve as Non-Official Directors on the RBI Central Board.
What is the number of directors nominated by the Government among the Non-Official Directors of the RBI Central Board?
There are 10 directors nominated by the Government who are part of the Non-Official Directors on the RBI Central Board.
How many directors from the RBI’s local boards are included in the Non-Official Directors, and which regions do they represent?
The RBI Central Board includes 4 directors from the RBI’s local boards, representing the West, East, North, and South regions.
Who serves as an Official Director on the RBI Central Board besides the Deputy Governors?
The RBI Governor is an Official Director on the RBI Central Board, apart from the Deputy Governors.
How many Deputy Governors are there on the RBI Central Board, and what is their role as Official Directors?
There are 4 Deputy Governors who serve as Official Directors on the RBI Central Board. Their role includes assisting the Governor in various functions and overseeing specific areas of operations within the RBI.
