RBI or Reserve Bank of India is known to be the central banking institution in India, which has the duty of controlling the monetary policy of the Indian currency rupee. Headquartered in the city of Mumbai, in the state of Maharashtra Reserve bank of India was founded in the year 1935 on 1st April, at the time of British rule in India. It was formed according to the provisions present in the reserve bank of India act of 1934, based on the recommendation of the Hilton young commission. After India’s independence in the year 1947, reserve bank of India was nationalised in the year 1949. Before that Reserve Bank of India was privately owned.
Among many other important functions of Reserve Bank of India, RBI also promotes the banking habit amongst public, thereby helps in expansion of banking system. In respect to this recently Reserve Bank of India’s Governor D Subbarao has urged all the banks to attain the target of making banking facilities available to small towns as fast as possible. According to Subbarao it is very unfortunate that ninety percent of the country’s towns are lacking banking facilities. Subbarao also said that RBI should target hard on ensuring that every family possess a bank account.
According to the governor of RBI there are nearly six lakhs towns in the country and of them in near about one lakhs towns are in Uttar Pradesh that lacks banking facilities. He there by requested all the banks to meet the target of providing banking facilities in these towns as soon as possible.
He also emphasized on the priority of RBI to check the price rise and should keep the priority on it always. It is also important for RBI to check on the inflow of fake Indian currency in the market and do whatever possible to stop it.