Read Aloud the Text Content

This audio was created by Woord's Text to Speech service by content creators from all around the world.

Text Content or SSML code:

CHAPTER-1 ORGANISATION AND MANAGEMENT OF THE RESERVE BANK OF INDIA INTRODUCTION The Reserve Bank of India was constituted under the Reserve Bank of India Act,1934. It began functioning w.e.f. 1 of April, 1935. Initially. the Reserve Bank of India was established as shareholder's bank. Its share capital was Rs. 5 crores divided into 5 lakhs fully paid-up shares of Rs. 100 each. After independence, the Reserve Bank of India was nationalised with the passing of the Reserve Bank of India (Transfer of Public Ownership) Act, 1948. In terms of the Act, the entire shares were transferred to the Central Government. The private shareholders were given a compensation at the rate of Rs. 118 and 10 annas per share of Rs. 100. The Reserve Bank of India began to function as a state owned and state controlled central bank (of the country) from 1-1-1949. OBJECTIVES OF THE ESTABLISHMENT OF THE RESERVE BANK OF INDIA The Reserve Bank of India was established on 1 April, 1935. The main objectives for establishment of the Reserve Bank of India as the Central Bank of our country were as follows: i) To manage the monetary and the credit system of our country. ii) To stabilise the internal value and the external value of the rupee. iii) For the balanced and the systematic development of the banking sector in our country. iv) To manage the public debts properly. For centralisation of cash reserves of the commercial banks of our country. vi) For the development of organised money market in our country.