Role of RBI

1. PRESENTED BY- NIRAKAR SWAIN
19MCOMRC28
DEPT: FINANCIAL ADMINISTRATION
CENTRAL UNIVERSITY OF PUNJAB
TOPIC- ROLE OF RBI

2. Origin of RBI
 1926:The Royal Commission on Indian currency and
finance recommended creation of a central bank for India
 1927: A bill to give effect to the above recommendation
was introduced in the legislative assembly, but was later
withdrawn due to lack of agreement among various
sections of people.
 1933: The white paper on Indian constitutional reforms
recommended the creation of a reserve bank . A fresh bill
was introduced in the legislative assembly
 1934:The bill was passed and received the governor
general assent

3.  1935:The reserve bank of India commenced its
operations as India's central bank on 1 April as a
private shareholder’s bank with a paid up capital of
rupees five core
 1942: The reserve bank ceased to be currency
issuing authority of Burma(now Myanmar)
 1947:the reserve bank stopped acting as banker to
the government of Burma
 1948:The reserve bank stopped rendering central
banking services to Pakistan
 1949:The government of India nationalised the
Reserve bank under the Reserve bank (transfer of
public ownership act )1948.

4. Organisation

5. LOCAL BOARD
 The Reserve Bank also has four Local Boards, constituted
by the Central Government under the RBI Act, one each for
the Western, Eastern, Northern and Southern areas of the
country, which are located in Mumbai, Kolkata, New Delhi
and Chennai. Each of these Boards has five members
appointed by the Central Government for a term of four
years. These Boards represent territorial and economic
interests of their respective areas, and advise the Central
Board on matters, such as, issues relating to local
cooperative and indigenous banks. They also perform other
functions that the Central Board may delegate to them

6. ROLE OF RBI
1.ISSURE IN CURRENCY
2.BANKER AND DEBT MANAGER TO GOVERNMENT
3.BANKER TO BANK
4.FOREIGN EXCHANGE MANAGEMENT SYSTEM
5.PAYMENT AND SETTELMENT SYSTEM
6.FINANCIAL INCLUSION AND DEVELOPMENT
7.CONSUMER EDUCATION AND PROCTATION
8.MONETARY POLICY
9.FINANCIAL MARKET

7. 1. ISSUER OF CURRENCY
 Sole note issuing authority
 Ensuring an adequate supply of clean and genuine notes
RBI’s Clean Note Policy
 Indian Coinage Act
 Denominations of coins and notes in circulation
- Coins in circulation: 50 paise, 1, 2, 5 and 10 Rupee

8.  Denominations of coins and notes in circulation
-Notes in circulation: Rs. 5, 10, 20, 50,100, 500 and without
limit.

9. 2.BANKER AND DEBT MANAGER TO
GOVERNMENT
 Managing the government banking transaction
 Banker to the central government
 Bankers to the state government
 Management of public debt

10. 3.BANKER TO BANK
 Enabling smooth, swift and seamless clearing and
settlement of inter-bank
 Providing an efficient means of funds transfer for Banks
 Enabling banks to maintain their accounts with the Reserve
Bank for statutory reserve requirements and maintenance of
transaction balances
 Lender Of Last Resort

11. 4.FOREIGN EXCHANGE MANAGEMENT SYSTEM
 Foreign Exchange Department
 Extensive relaxations in the rules governing
foreign exchange were initiated
 Foreign Exchange Management Act (FEMA) was
enacted in 1999 to replace FERA.
 FEMA became effective from June 1, 2000
 External Commercial Borrowing

12. 6.FINANCIAL INCLUSION AND DEVELOPMENT
 Credit flow to priority sectors
 Financial inclusion and financial literacy
 Credit flow to MSME
 Institutions
5.PAYMENT AND SETTELMENT SYSTEM
Payment System Initiatives:
 Paper-based Payments
 Electronic Payments
 Other payment system

13. 7.CONSUMER EDUCATION AND PROCTATION
 Right to Fair Treatment
 Right to Transparency, Fair and Honest Dealing
 Right to Suitability
 Right to Privacy
 Right to Grievances Redress and Compensation

14. 8.MONETARY POLICY
Monetary policy is concerned with the measures taken
to regulate the supply of money, the cost and availability of
credit in the economy. Further, it also deals with the
distribution of credit between uses and users and also with
both the lending and borrowing rates of interest of the
banks.
1. repo rate
2.reverse repo rate
3.liqudity adjustment facility
4.Marginal standing facility
5. Cash reserve ratio
6.Statutary liquidity ratio
8.Bank rate

15. Policy rates & Reserve ratios
REPO
RATE
REVERSE
REPO
RATE
MARGINA
L
STANDIN
G
FACILITY
RATE
BANK
RATE
5.15% 4.90% 5.40% 5.40%
CSR SLR
4% 18.25%

16. 9. FINANCIALMARKET
 Government securities market
 Call money market
 Call money market
 derivatives

17. Subsidiary of rbi
DICGC (1978)
Bharatiya Reserve Bank Note Mudran Private
Limited (1995)
Indian Financial Technology and Allied
Services (IFTAS) (2016)
Reserve Bank Information Technology
Private Limited (ReBIT)(2016)

18. Office and branches of rbi
 The Reserve bank of India has a network of
offices through which it discharges it
responsibilities.
office
• 1.MUMBAI
2.JOLKATA
• 3. DELHI
4.CHENNEI
BRANCHES
• Srinagar2. jammu 3.simla,4.chandigarh 5.dehradun
6.gangtok7. lukhonw 8. Guwahati 9.imphal,10.aizwal 11.
agartala,12 Patna 13 Ranchi 14 raipur
• 15.nagpur 16. bhubaneswara 17. hydrabad 18.panaji 19.
ahmedbad,,20. bhopal
• 21..bengaluru 22. jaipur, 23. chandigarh 24 . Bela pur 25.
shillong 26. kochi 27. thiruvanathpuram

19. THANKS