RBI@90: A Legacy of Stability and Vision

Economy holds a very important role in shaping up of a country. It actually helps creating the basic social structure and physical infrastructure, of the land through integration of various sectors like agriculture, industry, service and social groups like producer, household, govemment etc. The economy, in a way, shows up the overall financial condition and denotes the country itself as an economic unit.

- Saptarshi Roy Bardhan

A Central Bank, as monetary authority brings in the necessary financial discipline which the economy needs so that it may work to the best interest of the country and its citizens in terms of money supply, currency & forex management, banking services and overall executive control and administration of the banking sector. Every country has its own central or apex bank which operates at the policy level and administers other banking entities of the country through statutes, guidelines, advisories, rate dispensation, debt management as per the policy of the government and as may be required for adapting to the rapids of the world economy. In addition to these a central bank is also a repository of country-specific economic data. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century the oldest being, Sweden's Riksens Ständers Bank (the Estates of the Realm Bank) set up around 1668, which in 1867 received the name Sveriges Riksbank (pronounced as sveuh-ree-uhs riks-bangk).

The Reserve Bank of India (RBI), set up under the RBI Act, 1934, commenced its operations on April 1, 1935 with Sir Osborne Smith been appointed as the first Governor, has stepped into its 90th year of existence this year. It was established to serve as the custodian of India's monetary and financial stability. Over these nine decades, RBI has evolved, adapting to the changing economic landscape while remaining committed to the economic progress of the nation and the welfare of its people. RBI's story mirrors India's story, full of resilience, reinvention, and quiet conviction. RBI is in the centre point of building that ecosystem at the intersection of finance and technology, where it is more than just a regulator. It's the “reason” why India could go from long queues in bank branches to instant bank transfers on mobile phones!