RBI Act 1935

The Reserve Bank of India Act, 1935 is an Act of the Parliament of India to provide for the establishment of the Reserve Bank of India and to define its functions and powers. The Act was passed on 14th April, 1935 and came into force on 1st January, 1936.

The Act has 107 sections divided into 14 chapters. The following are the sub topics of the RBI Act 1935:

Chapter I: Preliminary
Chapter II: Establishment of the Reserve Bank
Chapter III: Functions of the Reserve Bank
Chapter IV: Powers of the Reserve Bank
Chapter V: Management of the Reserve Bank
Chapter VI: Accounts and Audit
Chapter VII: Currency
Chapter VIII: Issue of Bank Notes
Chapter IX: Exchange Control
Chapter X: Gold and Foreign Exchange
Chapter XI: Banking
Chapter XII: Bills of Exchange and Promissory Notes
Chapter XIII: Miscellaneous
Chapter XIV: Repeal and Saving

The Act also contains a number of schedules, which provide further details on the matters covered in the Act.
The Reserve Bank of India Act, 1935 is an Act of the Parliament of India to provide for the establishment of the Reserve Bank of India and to define its functions and powers. The Act was passed on 14th April, 1935 and came into force on 1st January, 1936.

The Act has 107 sections divided into 14 chapters. The following are the sub topics of the RBI Act 1935:

Chapter I: Preliminary
Chapter II: Establishment of the Reserve Bank
Chapter III: Functions of the Reserve Bank
Chapter IV: Powers of the Reserve Bank
Chapter V: Management of the Reserve Bank
Chapter VI: Accounts and Audit
Chapter VII: Currency
Chapter VIII: Issue of Bank Notes
Chapter IX: Exchange Control
Chapter X: Gold and Foreign Exchange
Chapter XI: Banking
Chapter XII: Bills of Exchange and Promissory Notes
Chapter XIII: Miscellaneous
Chapter XIV: Repeal and Saving

The Act also contains a number of schedules, which provide further details on the matters covered in the Act.

Chapter I: Preliminary

This chapter contains the short title, extent, commencement, and application of the Act.

Chapter II: Establishment of the Reserve Bank

This chapter provides for the establishment of the Reserve Bank of India as a body corporate with perpetual succession and a common seal. The head office of the Reserve Bank is located in Mumbai.

Chapter III: Functions of the Reserve Bank

The Reserve Bank has the following functions:

To regulate the issue of bank notes and keep the currency and credit system of the country under control;
To operate the monetary and credit policy of the Government of India;
To act as the banker to the Government of India and to the State Governments;
To act as the banker’s bank;
To promote the development of the banking system in India;
To regulate the Foreign exchange market in India;
To collect, compile, and publish statistical data relating to MoneyMoney, banking, and finance;
To perform such other functions as may be entrusted to it by the Central Government.

Chapter IV: Powers of the Reserve Bank

The Reserve Bank has the following powers:

To issue bank notes;
To buy and sell gold and foreign exchange;
To borrow money;
To invest its funds;
To grant loans and advances;
To accept deposits;
To open and maintain accounts;
To undertake such other activities as may be necessary or incidental to the discharge of its functions.

Chapter V: Management of the Reserve Bank

The Reserve Bank is managed by a Board of Directors consisting of a Governor, four Deputy Governors, and twelve Directors. The Governor is appointed by the Central Government and the other members of the Board are appointed by the Central Government on the recommendation of a Search Committee.

Chapter VI: Accounts and Audit

The Reserve Bank is required to keep proper books of accounts and to prepare an annual balance sheet and profit and loss account. The accounts of the Reserve Bank are audited by the Comptroller and Auditor General of India.

Chapter VII: Currency

The Reserve Bank is the sole issuer of bank notes in India. It also has the power to regulate the supply of currency in the country.

Chapter VIII: Issue of Bank Notes

The Reserve Bank is authorized to issue bank notes of the denominations of one rupee, two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, and one hundred rupees. The Reserve Bank is also authorized to issue coins of the denominations of one rupee, two rupees, five rupees, and ten rupees.

Chapter IX: Exchange Control

The Reserve Bank is responsible for the administration of exchange control in India. Exchange control is the system of regulating the flow of foreign exchange into and out of a country.

Chapter X: Gold and Foreign Exchange

The Reserve Bank is the custodian of the gold and foreign exchange reserves of India. It is also responsible for the management of the country’s foreign exchange reserves.

Chapter XI: Banking

The Reserve Bank is the central bank of India. It is responsible for regulating the banking system in India.

Chapter XII: Bills of Exchange and Promissory Notes

The Reserve Bank is authorized to issue bills of exchange and promissory notes.

Chapter XIII: Miscellaneous

This chapter contains a number of miscellaneous provisions, such as the power of the Reserve Bank to make regulations, the power of the Reserve Bank to delegate its powers, and the power of the Reserve Bank to punish for contravention of the Act.

Chapter XIV: Repeal and Saving

This chapter repeals the Reserve Bank of India Act, 1920 and saves all the orders, rules,
The Reserve Bank of India Act, 1935 is an Act of the Parliament of India to provide for the establishment of the Reserve Bank of India and to define its functions and powers. The Act was passed on 14th April, 1935 and came into force on 1st January, 1936.

The Act has 107 sections divided into 14 chapters. The following are the sub topics of the RBI Act 1935:

Chapter I: Preliminary
Chapter II: Establishment of the Reserve Bank
Chapter III: Functions of the Reserve Bank
Chapter IV: Powers of the Reserve Bank
Chapter V: Management of the Reserve Bank
Chapter VI: Accounts and Audit
Chapter VII: Currency
Chapter VIII: Issue of Bank Notes
Chapter IX: Exchange Control
Chapter X: Gold and Foreign Exchange
Chapter XI: Banking
Chapter XII: Bills of Exchange and Promissory Notes
Chapter XIII: Miscellaneous
Chapter XIV: Repeal and Saving

The Act also contains a number of schedules, which provide further details on the matters covered in the Act.

Here are some frequently asked questions about the RBI Act 1935:

What is the Reserve Bank of India?
The Reserve Bank of India is the central bank of India. It was established on 1st January, 1936 under the Reserve Bank of India Act, 1935. The RBI is responsible for the formulation and implementation of , the maintenance of financial stability, and the regulation of the financial system.
What are the functions of the Reserve Bank of India?
The functions of the Reserve Bank of India are as follows:
To regulate the issue of bank notes and to keep the value of the rupee stable.
To promote the development of the banking system and to regulate the operations of banks.
To act as the banker to the government and to the Commercial Banks.
To manage the country’s foreign exchange reserves.
To conduct monetary policy and to maintain financial stability.
What are the powers of the Reserve Bank of India?
The powers of the Reserve Bank of India are as follows:
To issue bank notes.
To regulate the operations of banks.
To act as the banker to the government and to the commercial banks.
To manage the country’s foreign exchange reserves.
To conduct monetary policy and to maintain financial stability.
How is the Reserve Bank of India managed?
The Reserve Bank of India is managed by a Board of Directors, which is appointed by the government of India. The Board of Directors is responsible for the overall management of the RBI. The RBI is also headed by a Governor, who is appointed by the government of India. The Governor is responsible for the day-to-day management of the RBI.
What are the accounts and audit of the Reserve Bank of India?
The accounts of the Reserve Bank of India are audited by the Comptroller and Auditor General of India. The Comptroller and Auditor General of India is an independent constitutional body, which is responsible for auditing the accounts of the government of India and its agencies.
What is the currency of India?
The currency of India is the Indian rupee. The Indian rupee is divided into 100 paise. The Reserve Bank of India is the sole issuer of bank notes in India.
What is the exchange control regime in India?
The exchange control regime in India is regulated by the Reserve Bank of India. The Reserve Bank of India is responsible for the management of the country’s foreign exchange reserves and for the regulation of the foreign exchange market.
What is the gold and foreign exchange policy of India?
The gold and foreign exchange policy of India is regulated by the Reserve Bank of India. The Reserve Bank of India is responsible for the management of the country’s gold and foreign exchange reserves.
What is the banking system in India?
The banking system in India is regulated by the Reserve Bank of India. The Reserve Bank of India is responsible for the regulation of the operations of banks in India.
What are the bills of exchange and promissory notes in India?
Bills of exchange and promissory notes are negotiable instruments, which are used in commercial transactions. Bills of exchange are used to settle debts between two parties, while promissory notes are used to borrow money.
What are the miscellaneous provisions of the Reserve Bank of India Act, 1935?
The miscellaneous provisions of the Reserve Bank of India Act, 1935 include the following:
The appointment of the Governor and Deputy Governors of the RBI.
The appointment of the Directors of the
The Reserve Bank of India Act, 1935 is an Act of the Parliament of India to provide for the establishment of the Reserve Bank of India and to define its functions and powers. The Act was passed on 14th April, 1935 and came into force on 1st January, 1936.

The Act has 107 sections divided into 14 chapters. The following are the sub topics of the RBI Act 1935:

Chapter I: Preliminary
Chapter II: Establishment of the Reserve Bank
Chapter III: Functions of the Reserve Bank
Chapter IV: Powers of the Reserve Bank
Chapter V: Management of the Reserve Bank
Chapter VI: Accounts and Audit
Chapter VII: Currency
Chapter VIII: Issue of Bank Notes
Chapter IX: Exchange Control
Chapter X: Gold and Foreign Exchange
Chapter XI: Banking
Chapter XII: Bills of Exchange and Promissory Notes
Chapter XIII: Miscellaneous
Chapter XIV: Repeal and Saving

The Act also contains a number of schedules, which provide further details on the matters covered in the Act.

Here are some MCQs on the Reserve Bank of India Act, 1935:

The Reserve Bank of India Act, 1935 was passed on:
(A) 14th April, 1935
(B) 1st January, 1936
(CC) 26th January, 1950
(D) 26th November, 1949
The Reserve Bank of India Act, 1935 has:
(A) 107 sections
(B) 108 sections
(C) 109 sections
(D) 110 sections
The Reserve Bank of India Act, 1935 is divided into:
(A) 14 chapters
(B) 15 chapters
(C) 16 chapters
(D) 17 chapters
The Reserve Bank of India Act, 1935 contains a number of:
(A) schedules
(B) tables
(C) figures
(D) graphs
The Reserve Bank of India Act, 1935 provides for the establishment of the:
(A) Reserve Bank of India
(B) State Bank of India
(C) Indian Bank
(D) Punjab National Bank
The Reserve Bank of India Act, 1935 defines the functions of the:
(A) Reserve Bank of India
(B) State Bank of India
(C) Indian Bank
(D) Punjab National Bank
The Reserve Bank of India Act, 1935 defines the powers of the:
(A) Reserve Bank of India
(B) State Bank of India
(C) Indian Bank
(D) Punjab National Bank
The Reserve Bank of India Act, 1935 provides for the management of the:
(A) Reserve Bank of India
(B) State Bank of India
(C) Indian Bank
(D) Punjab National Bank
The Reserve Bank of India Act, 1935 provides for the accounts and audit of the:
(A) Reserve Bank of India
(B) State Bank of India
(C) Indian Bank
(D) Punjab National Bank
The Reserve Bank of India Act, 1935 provides for the currency of India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for the issue of bank notes in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for exchange control in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for gold and foreign exchange in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for banking in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for bills of exchange and promissory notes in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for miscellaneous matters in India:
(A) True
(B) False
The Reserve Bank of India Act, 1935 provides for repeal and