Class 12 Finance Important Chapter 1 Organisation and Management of the RBI Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Important Solutions in English and select need one. AHSEC Class 12 Finance Additional Notes Download PDF. HS 2nd Year Banking Additional Solutions.
Class 12 Finance Important Chapter 1 Organisation and Management of the RBI
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 Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.
Organisation and Management of the RBI
Chapter: 1
| IMPORTANT QUESTION AND ANSWER |
Short Questions and Answers:
1. When was the Reserve Bank of India established, and under which Act?
Ans: The Reserve Bank of India was established on 1st April, 1935 under the Reserve Bank of India Act, 1934. This act provided the legal framework for the constitution, powers, and functions of the central bank of India.
2. What was the initial share capital of the Reserve Bank of India?
Ans: The initial share capital of the Reserve Bank of India was Rs. 5 crores. It was divided into 5 lakh fully paid-up shares of Rs. 100 each, and at first, RBI functioned as a shareholder’s bank.
3. When was the RBI nationalised, and how did its ownership change?
Ans: The RBI was nationalised with effect from 1st January, 1949, following the RBI (Transfer of Public Ownership) Act, 1948. All shares held by private shareholders were transferred to the Central Government, making it a fully state-owned institution.
4. Name the main objectives behind the establishment of the Reserve Bank of India.
Ans: The main objectives include managing the country’s monetary and credit system, stabilising the rupee’s value, systematic development of the banking sector, managing public debts, and centralising cash reserves of commercial banks, among others.
5. What is the composition of the Central Board of Directors of RBI?
Ans: The Central Board consists of 20 members: one Governor, four Deputy Governors, four directors from Local Boards, ten nominated directors who are experts, and one government official (usually the Finance Secretary).
6. What are the functions of the Local Boards of RBI?
Ans: Each of the four Local Boards advises the Central Board on matters referred to it and performs functions delegated to them. These boards help decentralise and regionalise the management of the RBI.
7. Where are the headquarters of the Local Boards of RBI located?
Ans: The Local Boards are headquartered in Mumbai, Kolkata, Chennai, and New Delhi. These regional offices help the RBI manage banking affairs more effectively across the country.
8. Who acts as the Chief Executive Officer of the Reserve Bank of India?
Ans:The Governor of RBI acts as the Chief Executive Officer and also serves as the Chairman of the Central Board of Directors. In the Governor’s absence, a Deputy Governor acts as Chairman.
9. List any five administrative departments of the RBI.
Ans: Five administrative departments of RBI include:
(i) Issue Department
(ii) Banking Department
(iii) Department of Currency Management
(iv) Department of Government and Bank Accounts
(v) Department of Expenditure and Budgetary Control
10. How does RBI manage its functions in areas where it has no branch?
Ans: In areas without its own branch, the Reserve Bank of India is represented by the State Bank of India, which acts as the RBI’s agent for conducting central banking operations on its behalf.
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