{"id":289035,"date":"2024-04-02T17:52:35","date_gmt":"2024-04-02T12:22:35","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=289035"},"modified":"2024-04-02T17:52:35","modified_gmt":"2024-04-02T12:22:35","slug":"rbi90-program","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi90-program\/","title":{"rendered":"RBI@90 program"},"content":{"rendered":"

Source<\/strong>-This post on RBI@90 program<\/strong> is based on the article “PM addresses RBI@90 opening ceremony<\/strong><\/a>” published in “PIB<\/strong>” on 1st April 2024.<\/p>\n

Why in the News?<\/h2>\n
\"RBI@90\"
Source- Hindustan Times<\/figcaption><\/figure>\n

Recently PM Narendra Modi attended the the opening ceremony of RBI@90, a program marking 90 years of the Reserve Bank of India<\/span>, in Mumbai, Maharashtra. He\u00a0also released a commemorative coin to mark 90 years of RBI<\/span>.<\/p>\n

RBI establishment and history<\/h2>\n

1. Established<\/strong>– The RBI was founded on April 1, 1934<\/span>, after suggestions from the Royal Commission on Indian Currency and Finance to ensure the country’s monetary stability.<\/p>\n

2. Commencement of operations<\/strong>– It started functioning on April 1, 1935, with Sir Osborne Smith as its first Governor<\/span>.<\/p>\n

3. Headquarter<\/strong>– The RBI’s main office was first in Kolkata but moved to Mumbai in 1937<\/span>.<\/p>\n

Significant achievements of RBI<\/h2>\n

1. Balance sheet and liquidity support<\/strong>– As of March 31, 2023, the RBI’s balance sheet is at a remarkable Rs 63 lakh crore<\/span>, surpassing the government’s annual budget. With this robust balance sheet, the RBI offered liquidity support equivalent to nearly 9% of GDP (US$ 227 billion) after the COVID-19 pandemic.<\/p>\n

2. Foreign Exchange Reserves<\/strong>– India’s foreign exchange reserves have now reached a significant USD 642 billion<\/span>, ranking fourth globally<\/span>. These reserves are vital for stabilizing the value of the rupee and have supported India during global crises like the 1997 East Asian currency crisis and the 2008 financial crisis.<\/p>\n

3. Inflation Management<\/strong>– Over time, the RBI’s responsibility for managing inflation or price stability has changed. In 2016, a flexible inflation targeting system was introduced<\/span>. This involves a six-member Monetary Policy Committee (MPC) determining interest rates to keep inflation within a target range of 2-6%<\/span>, with 4% as the goal<\/span>.<\/p>\n

4. Financial Sector Regulation<\/strong>– The RBI has taken steps to lower non-performing assets (NPAs) in banks and keep a healthy capital adequacy ratio between 15-16%.<\/span> It has also acted as a lender of last resort, helping troubled banks such as Yes Bank and Lakshmi Vilas Bank.<\/p>\n

UPSC Syllabus- Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post on RBI@90 program is based on the article “PM addresses RBI@90 opening ceremony” published in “PIB” on 1st April 2024. Why in the News? Recently PM Narendra Modi attended the the opening ceremony of RBI@90, a program marking 90 years of the Reserve Bank of India, in Mumbai, Maharashtra. He\u00a0also released a commemorative… Continue reading RBI@90 program<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872,3590],"class_list":["post-289035","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/289035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=289035"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/289035\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=289035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=289035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=289035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}