Reserve Bank of India, the Central Bank of India was established on 1 April 1935 in Calcutta, during British rule, with the Reserve Bank of India Act of 1934 and nationalized in 1949. The general management of the Bank is exercised by the Central board of directors, composed of 20 members, the governor and four deputy governors, a government official of the Ministry of Finance, 10 directors appointed by the executive directors and 4 others, which represent the four local authorities based in Mumbai, Kolkata, Chennai and New Delhi.
The institute, which is a member of the Asian Clearing Union, carried out the functions of the central bank for Burma until 1947, and for Pakistan until 1948. The central banks are issuing public institutions that deal with managing the monetary policy of countries or economic areas that share the same currency as payment.
Usually born out of stress were in need to finance their public deficits, ie the proportion of government expenditures not covered by taxation , through the issuance of licenses to pursue post-issuance and management of money , in order to prevent frequent banking crises and their speculations more likely in economic systems in which it was recognized in most banks the right to issue private currency.