RBI

1. RESERVE BANK OF INDIA (RBI)
AND ITS FUNCTIONS
PRESENTED BY : Pawan Singh Raikhola
ROLL NO. 1664880012
MBA INTEGRATED 5th sem.
23/08/2018

2. CONTENTS
• Introduction
• History
• Organisation
• Regional offices and Subsidiaries
• Functions
• Regulations of banking system
• Role of RBI in inflation control
• Publications of RBI.
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3. INTRODUCTION TO RBI
• Estabilished in April 1935 under the .
• Head Quarter - .
• The RESERVE BANK OF INDIA is the central banking institution of India and
controls the monetary policy of the rupee as well as the currency reserve.
• Present Governor - .
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4. HISTORY OF RBI
• It was set up on the recommendation of .
• It was started as share-holders bank with a paid up capital of .
• Intially it was located in .
• It moved to .
• Intially it was private owned.
• Since in , the RBI is fully owned by the .
• Its First Governor was .
• The First Indian Governor was .
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5. ORGANISATION
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6. REGIONAL OFFICE AND SUBSIDARIES
• It has 27 regional offices.
• It have five training establishment.
• College of Agriculutre Banking and RBI Staff College-Pune.
• National Institute for Bank Management-Pune.
• Indra Ghandhi Institue of Developement and Research-Mumbai.
• Institute of Developement and Research in Banking Technology(IDRBT)-
Hyderabad.
• Deposit Isurance and Credit GAUrantee Corporation of India (DICGC).
• Bhartiya Reserve BAnk Note Mudran Private Limted (BRBNMPL).
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8. FUNCTION OF RBI
• Financial supervision
• Monetary management
• Issue of currency
• Banker to Government
• Banker to banks
• Formulate monetary policy.
• Financial regulation and management
• Manager of foreign exchange
• Developemental role.
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9. FINANCIAL SUPERVISION
•The Reserve Bank of India performs this function under the guidence of the
Board for Financial supervision (BFS). Board was constitued in November 1994 as
a committee of the Central Board of Directors of the Reserve Bank of India.
•Primary objective of BFS is to undertake consolidated supervision of the financial
sector comprising commercial banks, financial institution and non-banking
finance companies.
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10. Monetary Authourity
• Main monetary authority of the country.
• It formulates, implements and monitors the monetary policy as well as it has
to ensure an adequate flow of credit to pdroductive sectors.
• The controls the monetary supply, monitor economic indicators like the gross
domestic product and has to decide the design of the ruppe banknotes as well
as coins.
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11. ISSUER OF CURRENCY
• Designing, printing distribution of the currency notes and coin
• The bank issues and exchange or destroys currency notes and coins not
fit for the circulation in the economy.
• The objective are giving the public adequate supply of currency of good
quality and to provide loans to the commercials banks.
• The principle of currency notes issues is known as the '
'.
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12. BANKER TO THE GOV ERNMENT
• Banker to the governments : Performs merchants banking
function for the
central and the state governments; also acts
as their banker.
BANKER TO THE BANK
• Banker to banks: maintains banking accounts of all
scheduled banks.
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13. FINANCIAL REGULATION AND MANAGEMENT
• AS the regulator and the supervisor of the banking system, the role to play
in ensuring the system's safety and soundness on an ongoing basis.
• The objective of this function is to protect the interest of depositors
through an effective prudential regulatory framework for orderly
development and conduct of banking operations, and to maintain overall
financial stability through various policy measures.
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14. MANAGER OF FOREIGN EXCHANGE
• To facilitate external trade and payment.
• It act as a custodian and manages the Foreign Exchange Management
Act,(FEMA).
• RBI buys and sells foreign currecncy to maintain the exchange rate of
Indian Rupee v/s foreign currencies like US Dollar, Euro, Pound and
Japanese Yen.
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15. DEVELOPEMENT ROLE
• The central bank has to perfrm a wide range of a promotional
functions to support national objectives and industries.
• Special Agriculture Credit Plan,(SACP).
• Kisan Credit Cards,(KKC).
• Natural Calamaties.
• Lead Bank Scheme
• Export credit
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16. ROLE OF RBI IN INFLATION CONTROL
• Inflation arises when the demand increases and there is a shortage of supply
there are two policies in the hands of the RBI.
• : It include the intresest rates . when the bank increases
the interest rates then there is the reduction in the borrowers and the
people try to save more as the rate of interest has increased.
: It is related to direct taxes and government spendings. When
direct taxes increased and government spending increase than the
disposable income of the eople reduces hence the demand reduces.
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17. QUANTITATIVE AND QUALITATIVE MEASURES
Quantitative Measures
• BASE RATE(8.75% to 9.45%)
• MCLR(7.90% to 8.05%)
• BANK RATE(6.75%)
• REPO RATE(6.25%)
• REVERSE REPO RATE(6%)
• MARGINAL STANDING FACILITY(6.75%)
• OPEN MARKET OPERATION
• VARIABLE RESRVE RATIO
1) CRR(4%)
2) SLR(19.5%)
Qualitative Measures
• MORAL SUASIAN
• DIRECT ACTION
• PRESCRIPTION OF MARGIN
• CONSUMER CREDIT REGULATION
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18. REGULATION OF BANKING SYSTEM
The prime duty of the RBI is to regulate the banking system of our country in
such a way that the people of the country can trust in the banking upto
performs its duty.
The Reserve Bank has following powers in this regard:
• Licensing
• Management
• Branch Expansion
• Power of Inspection of the Bank
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19. PUBLICATION OF RBI
ANNUAL
• Annual report
• Report on Trend and progress of Banking in India
• Report on Currency and Finance
• Handbook of Statistics on the Indian Economy
• State finances: A Study of Budgets
• A Profile of Banks
• Statistical tables relating to Banks in Indian
• Basic Statistical Returns of scheduled commercial banks in India
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20. HALF YEARLY
• Financial Stability Report
QUARTERLY
• Macroeconomics and Monetary Development
• Occasional Papers
• Quaterly Statistics on Deposits and Credit of Scheduled Commercial Banks
MONTHLY
• RBI Bulletin
• Monetary and Credit Information Review
WEEKLY AND OCCASIONALLY
• Weekly Statistical Supplement
• RBI Working Paper Series (web version)
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