"A central bank being generally recognized as a bank which constitutes the apex of the monetary and banking structure of its country and which performs as best as it can, in the national economic interest." - De Kock.
(or)
"It may be defined as an institution charged with the responsibility of managing the expansion and contraction of the volume of money in the interest of the general public welfare." - Kent.
(or)
"A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country." - Bank of International Settlement (BIS).

"Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, pay order or otherwise".

Educational, medical, hospitality are the services included in service businesses.

The RBI is governed by a Central Board of Directors. The 21 member board is appointed by the Government of India. It consists of :
(i) One Governor and four Deputy Governors appointed for a period of four years.
(ii) Ten directors from various fields.
(iii) Two government officials
(iv) Four directors - one each from local boards.

Origin of RBI:
1. The imperial bank of India carried out the note issue and other functions of the Central Bank.
2.  In 1926 the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J.M. Keynes and Sir Ernest Cable were its members) made recommendations to create a Central Bank.
3.  As a result, the RBI Act 1934 was passed and RBI launched in its operations from April 1, 1935.
4. RBI was established with a share capital of Rs.5 crores divided into shares of Rs.100 each fully paid up.
5. The entire share capital was owned by the private shareholders. Its head office was in Calcutta and moved to Mumbai in 1937.
6. After independence, the Government of India passed Reserve Bank (Transfer to Public Ownership) Act, 1948 and took over RBI after paying appropriate compensation to the private shareholders.
7. From January 1, 1949, RBI started functioning as a government owned central bank of India.
8. It had three departments. The RBI was the central bank of Burma until 1947, and the central bank of Pakistan until June 1948.

1. Banking Service is the nerve centre of industry and Commerce in a country.
2. It plays a vital role by providing the money required for their regular functioning and development.
3. The word Bank normally refers to Commercial Banks.
4. There are many types of banks rendering different types of services.
5. Central Bank is the most important one among them.

(i) The Head office of the RBI is situated In Mumbai. This central office has 33 departments in 2017.
(ii) It has four zonal offices in Mumbai, Delhi, Calcutta and Chennai functioning under local boards with deputy governors as their heads.
(iii) It also has 19 regional offices and 11 sub-offices (2017).
The RBI is governed by a Central Board of Directors. The 21 member board is appointed by the Government of India. It consists of:
(1) one governor and four deputy governors appointed for a period of four years,
(2) ten directors from various fields
(3) two Government officials
(4) four directors - one each from local boards.

The functions of RBI can be grouped into under three heads.
(i) Leadership and supervisory functions
(ii) Traditional functions; and
(iii) Promotional functions
Leadership and Supervisory Functions:
RBI being the banking institutional head of India has to be a part of global institutions. It has to transform the quality and size of banks in India to the level of banks in developed countries.
a) India's Representative in World Financial Institutions:
In order to maintain consistency and harmony with international banking standards the RBI is associated with Basel Committee on Banking Supervision (BCBS, Switzerland) since 1997. RBI represents Government of India in International Bank for Reconstruction and Development (IBRD i.e. World Bank) and International Monetary Fund (IMF) in which India is a member since December 27, 1945.
Traditional Functions:
a) Banker and Financial Advisor to the Government:
The RBI accepts money into the Central and State Governments' accounts and make payments on their behalf. It manages Government debt and is responsible for issue of new loans.
b) Monopoly of Note Issue:
The RBI is the sole authority for the printing and issue of all currency notes in India except one rupee note. It is the duty of the RBI to ensure that sufficient number of good quality currency notes is available to the public.
Promotional Functions :
The RBI performs a wide range of promotional functions to support national objectives.
a) Nurturing Banking Habits among the Public:
It protects the depositors' interest and aim at providing cost-effective banking services in order to include more people to avail banking services. It has also taken up the task of extending the banking system territorially and functionally to the unbanked areas.
b) Grievance Settlement Measures:
RBI has appointed 20 (up to 2017) Banking Ombudsman in 20 state capitals. Banking Ombudsman Scheme is a speedy and inexpensive forum for resolution of customer complaints relating to certain services rendered by banks in India.