RBI Governors from 1935-2024, Roles and Responsibilities, Powers

RBI Governors: The Reserve Bank of India (RBI) is like the money boss of India, it makes the rules for how we use money. RBI started on April 1, 1935, and the government took control of it on January 1, 1949. At first, it was a private bank. RBI's main office is now in Mumbai, but it used to be in Kolkata. The person in charge of RBI is called the governor. Over the years, there have been 25 different RBI Governors. The first one was Osborne Smith in 1935 , and the current one is Shaktikanta Das .

RBI Governors

History of RBI Governors

RBI Governors List

First RBI Governor of India

Current RBI Governor of India

Roles and Responsibilities of RBI Governors

• The RBI governor, as the head of a financial institution, is responsible for maintaining monetary stability in the economy and formulating RBI policies.
• The governor issues licences for new foreign and private banks in India.
• They have the authority to control interest rates on loans and savings accounts, focusing on minimum lending rates.
• The governor oversees and regulates the entire financial system in the nation, setting parameters for its functioning.
• They manage external trade, promote foreign exchange market development, and ensure adherence to the Foreign Exchange Management Act, 1999.
• Monitoring currency supply and overseeing the issuance and withdrawal of unfit currency are also part of their responsibilities.
• The governor works to make financial rules and regulations more customer-friendly.
• Through the Urban Bank Departments, they lead and supervise primary co-operative banks.
• The governor facilitates and monitors the flow of credit to small-scale industries, rural areas, and agriculture.
• They are responsible for regulating state co-operative banks, regional rural banks, and various local area banks in India.

RBI Governors Eligibility Criteria

• Employment with the IMF or World Bank.

• Serving as the Chairman or General Manager of a bank.

• Having a significant position in a reputable financial or banking organisation.

• Working within the Ministry of Finance of the Government of India (GOI) .

RBI Governors Tenure

• If the President decides to remove the governor from their position.
• If the governor decides to resign and submits their resignation to the President

Important Facts About RBI Governors

• Manmohan Singh is a notable figure in RBI history, as he's the only person who served as both the RBI Governor and the Prime Minister of India .
• The first Indian to hold the position of RBI Governor was Mr. C.D. Deshmukh .
• Ms. KJ Udeshi achieved a significant milestone by becoming the first woman Deputy Governor of the Reserve Bank of India. She served in this role from June 10, 2003, to October 12, 2005 .
• The appointment of the RBI Governor is overseen by the Prime Minister's Office (PMO). The recommendations of the Union Finance Minister are considered when selecting the Governor.
• Both the RBI Governor and Deputy Governor are appointed in accordance with Section 8 of the Reserve Bank of India Act 1934.