Class 12 Finance Chapter 1 Organisation and Management of The Reserve Bank of India

Class 12 Finance Chapter 1 Organisation and Management of The Reserve Bank of India Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Chapter 1 Organisation and Management of The Reserve Bank of India Solutions in English and select need one. AHSEC Class 12 Finance Solutions Download PDF. HS 2nd Year Finance Textual Solutions.

Class 12 Finance Chapter 1 Organisation and Management of The Reserve Bank of India

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Textual Solutions English Medium for All Chapters, You can practice these here.

Organisation and Management of The Reserve Bank of India

Chapter: 1

Unit – 1: FINANCIAL INSTITUTIONS

A. Very Short Questions Answer:

1. When was the RBI Act passed?

Ans: The RBI Act was passed in 1934.

2. When was the RBI established?

Ans: The RBI was established on 1 April 1935.

3. When was the RBI nationalised?

Ans: The RBI was nationalised on 1 January 1949.

4. What is the term of office of the Governor of RBI?

Ans: The Governor of the RBI is appointed for a term of 5 years (eligible for reappointment).

5. What is the term of office of the Deputy Governors of the RBI?

Ans: The Deputy Governors are appointed for a term of 5 years (eligible for reappointment).

6. How many Local Boards of the RBI are there?

Ans: There are 4 Local Boards of the RBI (located at Mumbai, Kolkata, Chennai, and New Delhi).

B. Short Answer Questions.

1. Write the names of any two departments of the RBI.

Ans: Two departments of the RBI are:

(i) Issue Department.

(ii) Banking Department.

2. Write a brief note on the ‘Local Boards’ of the RBI.

Ans: The RBI has four Local Boards located at Mumbai, Kolkata, Chennai, and New Delhi. Each Local Board consists of members appointed by the Central Government for a term of four years. They advise the Central Board on regional banking matters and help in the smooth functioning of the RBI.

C. Long Answer Questions.

1. What are the objectives of the establishment of the RBI?

Ans: The main objectives of establishing the Reserve Bank of India are:

(i) To manage the monetary and credit system of the country.

(ii) To stabilise the internal and external value of the rupee.

(iii) To ensure the balanced and systematic development of the banking sector.

(iv) To manage the public debt properly.

(v) To centralise the cash reserves of commercial banks.

(vi) To develop an organised money market in the country.

(vii) To maintain a balance between the demand for and supply of currency.

(viii) To ensure the proper arrangement of industrial finance.

(ix) To ensure the proper arrangement of agricultural finance.

(x) To establish monetary relations with other countries and international financial institutions.

2. Write a note on the ‘Central Board of Directors’ of the RBI.

Ans: The Central Board of Directors is the highest decision-making body of the RBI. It is appointed by the Central Government under the RBI Act, 1934. The Board consists of:

(i) One Governor.

(ii) Up to four Deputy Governors.

(iii) Four Directors representing the Local Boards.

(iv) Ten Directors from various fields.

(v) Two Government officials.

The Central Board is responsible for formulating policies, supervising the affairs of the RBI, and ensuring the effective management of the country’s banking and financial system.

D. Long Answer Questions.

1. Describe the organisation and management of the RBI.

Ans: The Reserve Bank of India (RBI) is the central bank of the country. It was established on 1 April 1935 under the RBI Act, 1934, and was nationalised on 1 January 1949.

The organisation and management of the RBI are carried out by the Central Board of Directors, which is appointed by the Central Government. The Board consists of one Governor, up to four Deputy Governors, four Directors representing the Local Boards, ten Directors from different fields, and two Government officials.

The RBI has four Local Boards situated at Mumbai, Kolkata, Chennai, and New Delhi. These boards advise the Central Board on regional banking matters.

The RBI functions through several departments, such as the Issue Department, Banking Department, Foreign Exchange Department, and Department of Currency Management. Each department performs specific functions to ensure the efficient working of the central bank.

The RBI manages the issue of currency, controls credit, regulates commercial banks, maintains foreign exchange reserves, acts as the banker to the Government, and promotes financial stability and economic development. Through its well-organised structure and effective management, the RBI plays a vital role in the Indian economy.