PM Modi to address ceremony marking 90 years of RBI in Mumbai today

Prime Minister Narendra Modi. Pic/PTI

Prime Minister Narendra Modi will address a ceremony marking 90 years of the Reserve Bank of India (RBI) in Mumbai today, the central bank said.

The event will also be attended by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das.

"Join us for the commemoration of the 90th year of Reserve Bank of India (RBI@90). Address by Hon'ble Prime Minister @narendramodi and by Hon'ble Finance Minister @nsitharaman. Welcome address by RBI Governor @dasshaktikanta," RBI said in a post on X.

Established in 1935, RBI functions as the nation's central bank, following the recommendations of the Hilton Young Commission and governed by Reserve Bank of India Act, 1934, reported news agency ANI.

The functioning of this central bank is governed by the Reserve Bank of India Act, 1934 (II of 1934), and it began operations on April 1, 1935 with Sir Osborne Smith as the first Governor, responsible for functions such as currency issuance, banking services for banks and the government, and the development of rural cooperatives and agricultural credit, reported ANI.

In 1937, the Central Office of the Reserve Bank was also shifted from Kolkata to Mumbai.

The RBI's role has expanded to cover monetary management, regulation and supervision of the financial system, management of foreign exchange, currency issuance, regulation and supervision of payment and settlement systems, and developmental roles over the years, reported ANI.

Earlier, the Reserve Bank of India (RBI) disclosed the latest figures concerning India's International Investment Position (IIP) as of December 2023 showing a decline in net claims of non-residents on India, plunging by USD 12.2 billion during the period from October to December 2023, culminating at USD 370.4 billion by the end of December 2023. A contributor to this shift is the rise in reserve assets, soaring by USD 34.8 billion during the third quarter of 2023-24.

According to Reserve Bank of India, this dip in net claims is primarily attributed to a substantial surge in Indian residents' overseas financial assets, amounting to USD 40.7 billion, outpacing the increase in foreign-owned assets within India, which stood at USD 28.5 billion.

This surge in reserve assets constitutes over 85 per cent of the increase in foreign assets held by Indian residents, underscoring the importance of reserves in bolstering India's financial position on the global stage.

(With inputs from ANI)