RBI AN INTRODUCTION
The Reserve Bank Of India(RBI) is India’s central banking institution which controls the monetary policy of Indian Rupee . It commenced its operations on 1 April 1935 during British Rule in accordance with the Provisions of the Reserve Bank of India Act 1934.
The RBI plays an important part in the Development strategy of Government of India .It is a member bank of the Asian Clearing Union. The general superintendence & direction of RBI is entrusted with a 21 member Central Board of Directors : The Governor , 4 Deputy Governors , 2Finance Ministry representatives , 10 government nominated directors to represent important elements from India’s economy & 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai& New Delhi .
The Major functions of RBI are as following:
Regulator& Supervisor of Financial System
Managerial of Exchange Control
Issue of Currency
Detection of Fake Currency
Out of the above Mentioned functions the main function of RBI is issue of currency which may be later circulated to banks through whom it reaches general masses.
RBI issues & exchanges currency notes & coins & destroys the same when they are not fit for circulation just like old 500&1000 currency notes which are mere paper now.
After a brief review about RBI working to understand the context of RBI Functionality.
RBI officials are involved daily in high value currency exchange. In population of over 100 crores India is a land of different type of people from different backgrounds all combed into one thread of nationalism & Integrity.
After the dynamic move by our PM to demonetise Rs 500 & Rs 1000 currency notes at the stroke of midnight of 8 November 2016, there was utter chaos in people who were deep rootedly involved in corrupt practices & having large amount of black money at their disposal.
After the revolutionary step & strict rules for currency exchanges the black money people were in state of shock but as corrupt never concede defeat so easily so there was increase in cases of bribing bank officials for exchanging the black money .
These practices come to light as more & more ceasure of new currency notes from public & private properties.
It is a matter of great shame that even after taking such a bold step the economy is still suffering at hands of some corrupt people who doesn’t want to concede defeat.
Seated at 76th position in list of most corrupt nations of the world India is yet to see its silver lining.
Out of this greed for money the RBI official from Bengaluru was today arrested for allege illegal exchange of 1.5 crore rupees old currency notes. This news of today comes with an element of surprise that how can a junior level official at RBI have black money to the tunes of 1.5 crores.
It’s a shocker to see as more & more people are nabbed for illegal possession of wealth & property.
The RBI officials arrested today are under CBI custody & will be interrogated for the possession of black money.
It becomes quite imperative that more better & strict rules of currency are formulated by Indian Government with help of RBI
Article By: Sonam