No, individual can open the account with the RBI (reserve bank of India) because RBI is regulating and securing the monetary stability in India and operate the currency and credit system of the country. Develop modern frame work to meet challenges of increasingly complex economy to maintain price stability with the objective of growth. RBI is the banker’s bank and only banks, governmental authorities and statutory bodies are permitted to open accounts with the RBI. Individuals and businesses can open the accounts with the commercial banks that are regulating by the RBI.
What work does the Reserve Bank of India actually do?
Function of the reserve bank of the India
Banker of the government
- Act as banker for government and performing merchant banking service between central and state government.
- Maintain the account for banks, act as banker’s bank
Role for development
- Promote the wide range of objective for national development
Monetary authority
- Develop the monetary polices
- Maintain the price stability
Operate and supervisor of the financial system
- Prescribe the banking function and financial system of country
- Maintain cost effecting banking service and confidence of public by protect them.
Manager of foreign exchange
- Manage and operate the foreign exchange management Act, 1999
- Promote the foreign trade and payment, Develop the foreign exchange market in India
Issur of currency
- Issues, exchange and destroys currency notes and circulation coins minted by government of India
- To give the public adequate quality of supplies of currency notes and coins
Maintain payment and settlement system
- Develop the safe secure and effective payment system in country and for foreign payments, which meet the public requirements at large.
- Maintain public confidence in payment and settlement system
Is the Reserve Bank of India independent from the central government?
The reserve bank of India was established on April 1, 1935 with the provision of reserve bank of India act, 1934 but after the independence since nationalisation of country in 1949, the RBI is fully owned by the government of India. The RBI affairs are governed by the central board of directors and the board is appointed by the government of India in keeping with the RBI Act.
1.Official directors:
Governor and four deputy Governor.
2.Nonofficial directors:
Ten directors and two government officials and four directors from local board.
Local board
- Constituted for east, west, north and south
- Five members from each
- Member appointed by central government
- Members shall hold the office for four years
Function of the local board is advice to central board on local matters and represent the local economic interest of cooperative banks.
credit information: Reserve Bank of India (rbi.org.in)