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General Knowledge on Reserve Bank of India

First read the information blow and then try to answer the questions on this thread.


The Reserve Bank of India (RBI) was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934, based on the recommendations of the Hilton Young commission.

The Central Office of the RBI, which was then located in Calcutta, was permanently moved to Mumbai in 1937. Today the RBI has 22 regional offices, mostly in State capitals. During its inception, the RBI was privately owned. However, the RBI is now fully owned by the Government of India post-nationalisation in 1949. The basic functions of the RBI as stipulated in the Preamble of the RBI Act are threefold: first, to regulate the issue of bank notes (the RBI also exchanges or destroys currency and coins not fit for circulation); second, to keep reserves in order to maintain monetary stability in India; and third, to operate the currency and credit system of India to its advantage. Further, it also acts as the regulator and supervisor of the financial system by laying down broad guidelines for banking operations within the country.

Moreover, it acts as a manger of foreign exchange under the Foreign Exchange Management Act, 1999 and facilitates external trade and payment. The RBI acts as the banker to the Government and to the scheduled banks. It acts as a supervisor and regulator of the financial sector which consists of commercial banks, financial institutions and non-banking finance companies under the guidance of the Board for Financial Supervision which was established in 1994. Lastly, it also has a developmental role in that it performs a variety of promotional functions directed at supporting national objectives.

The RBI has a Central Board and four Local Boards. The Central Board of Directors governs the affairs of the RBI. The Board consists of Official Directors (Governor and not more than four Deputy Governors) and Non-Official Directors (ten Directors from various fields, one government official and each of the Directors of the four Local Boards) who are appointed by the Government of India for a period of four years.

The Central Board is advised by the 4 Local Boards in Mumbai, Kolkata, Chennai and New Delhi who represent the interests of local cooperative and indigenous banks. They also perform such other functions as may be delegated to them by the Central Board. Each Local Board consists of five members who are appointed by the Central Government for a term of four years.

The legal framework for the functioning of the RBI is provided by the Reserve Bank of India Act, 1934 and the Banking Regulations Act, 1949.


Questions:
When was the RBI established?
15th January, 1950
1st March, 1947
1st March, 1905
1st April, 1935

Which legislation established the RBI?
Banking Regulations Act, 1949
Reserve Bank of India Act, 1934
The Foreign Exchange Regulation Act, 1973
The Negotiable Instruments Act, 1881

Where are the four Local Boards of the RBI located?
Delhi, Chennai, Mumbai, Bangalore
Delhi, Bangalore, Mumbai, Kolkata
Bangalore, Mumbai, Kolkata, Chennai
Chennai, Kolkata, Mumbai, Delhi

Whom is the RBI a banker to?
Banks
Government
Both of the above
None of the above

What is the function of the Local Boards of the RBI?
They advise the Central Board
They perform such tasks as may be delegated to them by the Central Board
They represent the local and indigenous banks
All of the above

How many members does each Local Board comprise of?
5
4
10
7

What are the basic functions of the RBI?
Issue currency
Manage foreign exchange
Both of the above
None of the above

Where is the Central Office of the RBI located?
Delhi
Kolkata
Mumbai
Chennai

Based on which Commission’s recommendations was the RBI established?
Hilton Commission
Banking Commission
Hilton Young Commission
Planning Commission of India

Who owns the RBI presently?
Privately owned
Government owned
Owned jointly by private players and the Government
None of the above

What role does the RBI play in relation to the Foreign Exchange Management Act, 1999 (FEMA)?
Facilitates foreign trade and payment
It plays no role in relation to the Foreign Exchange Management Act, 1999
It regulates foreign banks
None of the above

What is the function of the Central Board of the RBI?
It governs all affairs of the RBI
The RBI has no Central Board
It performs the tasks delegated to it by the Local Boards
None of the above

How many regional offices does the RBI have?
25
28
22
4

What is the composition of the Central Board of the RBI?
Official Directors (Governor and not more than four Deputy Governors) and Non-Official Directors (ten Directors from various fields, one government official and each of the Directors of the four Local Boards)
5 members nominated and appointed by the Central Government
One Director and five members
None of the above

What is the tenure of the members of the Boards of the RBI?
5 years
10 years
4 years
7 years

Who appoints the members of the Local Boards of the RBI?
State Government
Central Government
State Government on the advice of the Central Government
The Governor of the RBI

How many non-official directors does the Central Board of the RBI have?
4

5.
15
10

What is the role of the RBI as an issuer of currency?
It destroys currency not fit for circulation
It issues bank notes
Both of the above
None of the above

How does the RBI maintain monetary stability in the country?
It keeps reserves
It issues currency
Both of the above
None of the above

The RBI acts as a banker to____?
All banks
Scheduled banks
Unscheduled banks
The Government only



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Comment by nilesh on April 11, 2010 at 9:50pm
who was the first governor of rbi...pre and pro independce period.......
what is the term of governor of rbi

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