Question

Compare the structure and independence of the Reserve Bank of India (RBI) and People’s Bank of China (PBoC) with differences and similarities.

MAXIMUM ONE PAGE.

Answer 1

RBI VS PBoC

Reserve of India

• It was established on 1 April 1935.
• It is ruled by the Reserve Bank of India Act, 1934.
• After India's independence, RBI was nationalized on 1 January 1949.
• RBI's operations are entrusted to 21 central board of directors.
• The directors are appointed by the Government of India.
• It has four zonal offices and 19 regional offices all over India.
• The bank regulates the currency, credit system, economic growth, and the monetary policy of the country.
• It also provides necessary economic advisory and financial help to the government.
• It governs over all the other banks in the country.
• It operates in a democratic economic country.

People's Bank of China

• It was established on 1 December 1948.
• Before 1952, PBC was responsible for both central and commercial banking operations.
• The bank was legally modernized by 18 March 1995 which granted it more independence.
• The bank's operations are entrusted to a governor and deputy governors.
• The governor is appointed by the National People's Congress.
• It has 9 regional offices, 2 operations branches, 303 municipal sub-branches, and 1809 county sub-branches.
• Like any other central bank, it also regulates the financial system of China.
• It also regulates monetary policy, credit system, and economic growth of the nation.
• It operates in the socialist economic country,

Both banks have gone through many reforms and merging. They are both also functioning in the two largest economies of the world. Both are also controlled by their Government to a large extent.