All about RBI in short...

1. Industry :
BankingBrand : Reserve Bank of India
(RBI)

3. About
Banking Sector :
 Bank is a financial institution that undertakes the banking
activity ie.it accepts deposits and then lends the same to
earn certain profit.
 Banking in India originated in the last decades of the 18th
century.
 The first banks were Bank of Hindustan and The General
Bank of India.
 Banking defined as the business activity of accepting and
safeguarding money.
 Banks act as payment agents.

4.  Banking services include issuance of debit and credit
cards, etc.
 Borrow money by accepting funds deposited by current
accounts.
 The simple looking method of accepting or lending money.
 Create new money when they make a loan.
 A bank can generate revenue in a variety of different ways
.
 In 1990, licensing a small number of private banks.
 These came to be known as New Generation tech-savvy
banks
 There has seen rapid growth with the three sectors of
banks.

5.  The introduction of online banking in India.
 The use of computers in the banking sector in India has
increased after the economic liberalization.
 After 1991 country's banking sector has been exposed to
the world's market .
 In 1995, the Committee for proposing Legislation on
Electronic Funds Transfer.
 Total numbers of ATM’s installed in India as on end June
2012 is 99,218.

6. 1935
RBI’s
operation
begins on 1
April.
1937
RBI’S Central
office moves
to Mumbai
1949
Nationalization of
Reserve Bank
1963
Reserve Bank
Staff Training
College (RBSC)
Established.
1969
Nationalization of
14 Commercial
Banks
1975
Regional
Rural
Banks Set-
up
1966
Co-operative
Banks
Come under RBI
Regulation
1984
Automated
Magnetic Ink
Character
Recognition
system
introduced
History / Highlights:
…
.

7. 1992
ECS & EFT
introduced
1997
Regulation of non-
Banking finance
companies strengthened
2000
Currency
processing
mechanized
2004
Real Time Gross
Settlement (RTGS)
commences
2005
Machine
readable
security
features
introduced
2008
Mobile Banking
Enabled
2009
RBI purchased 200
mts gold under IMF’s
Gold sales program .
2010
Year-Long
platinum Jubilee
celebrations

8. Management & Structure:
…
.
 Governor the chief Executive.
 Supervises & directs the affairs and business.
 Management team includes Deputy Governor & executive directors.
Governor
Dr .Raghuram
Rajan
Deputy Governor
Dr.K.C.Chakrabarty
Deputy Governor
Dr.Urjit R. Patel
Deputy Governor
Shri.Anand Sinha
Deputy Governor
Shri.H.R.Khan
Executive Directors
 Shri.G Gopalkrishna  Shri.D.K.Mohanty  Shri. S Karuppasamy  Shri R. Gandhi  Shri P. Vijaya Bhaskar
 Shri B. Mahapatra  Shri G. Padmanabhan  Shri Jasbir Singh  Dr. (Smt.) Deepali Pant Joshi

9. Central
Board of
Directors
Governor
Deputy Governor
Executive Director
Pricipal Chief General Manager
Chief General Managers
General Managers
Deputy General Managers
Assistant General Managers
Managers
Assistant Managers
Support Staff
Organizational Structure:
…
.

10. Main Activities of the RBI:
…
.
The Reserve Bank is the umbrella network for numerous activities, all
related to the nation’s financial sector, encompassing and extending
beyond the functions of a typical central bank. This section provides an
overview of our primary activities:
 Issuer of Currency
 Monetary Authority
 Banker and Debt Manager to Government
 Banker to Banks
 Regulator of the Banking System
 Manager of Foreign Exchange
 Maintaining Financial Stability
 Regulator and Supervisor of the Payment
and Settlement Systems
 Developmental Role

11. Issuer of Currency :
…
.
 Core central banking function.
 responsible for overall management of currency.
 ensuring an adequate supply of notes.
 enhance security feature of forgery of currency notes.
RBI’s Anti-counterfeiting Measures
 Continual upgrades of bank note security features
 Public awareness campaigns to educate of forged or
counterfeit notes
 Installation of note sorting machines
From the 1st April 2014 we can Exchange the old
Currency Notes in the Banks.

12. Denominations of coins and notes in circulation:
 Coins in circulation: 50 paise , 1, 2, 5 and 10 Rupee
 Notes in circulation: Rs. 5, 10, 20, 50,100, 500 and 1000
Bank notes are legal tender at any place in India for payment without limit.
As per Indian Coinage Act-
 Rupee coin (1 and above) can be used to pay /settle for any sum
 Paise 50 coin can be used to pay /settle any sum not exceeding Ten Rupees

13. Monetary Authority :
…
 One of the most important functions of central banks
 Monetary policy deals with various policy instrument of money in the economy.
 Central bank change the choice of instruments in monetary policy.
 Maintaining Price stability & Financial stability.
 Ensuring adequate flow of credit to productive sector
 The basic functions is regulate the issue Bank notes.

14. Banker and Debt Manager
to Government
 In 1935 RBI becomes Banker & Debt Manager.
 Managing the government’s banking transaction.
 Like individual governments need a banker to carry their financial
transactions.
 Reserve Bank maintains its accounts & transfer of government funds.
 RBI act as banker to state government when entered in agreement.

15. Banker to Banks
As the banker to banks, RBI focus on:
 Enabling smooth, swift and seamless clearing and settlement
of inter-bank obligations.
 Providing an efficient means of funds transfer for Banks.
 Enabling banks to maintain their accounts with us for purpose
of statutory reserve.
 Acting as lender of the last resort.

16. Regulator of the Banking
System :
 Banks fundamentals to financial system.
 Critical role to play in safety and soundness of banking system.
 Maintaining financial stability and public confidence in system.
 Reserve Bank protects the interests of depositors, ensures a framework for
conduct of banking operations.
 Maintains financial stability through preventive and corrective measures.

17. Manager of Foreign Exchange
 RBI plays a key role in Development of Foreign Exchange Market and
assumes three broad roles relating to foreign exchange:
 Regulating transactions related to the external sector.
 Ensuring smooth conduct in the domestic foreign exchange market.
 Managing foreign currency assets & gold reserves.
In investing its foreign assets,
the Reserve Bank
is guided by three principles: safety,
liquidity and return

18. Maintaining Financial Stability :
 In 2009, the Reserve Bank set up a dedicated Financial
Stability Unit.
The department’s remit includes:
 Conduct of macro-prudential surveillance of the financial system on an
ongoing basis.
 Developing models for assessing financial stability in going forward.
 Preparation of half yearly financial stability reports.
 Development of a database of key variables which could
impact financial stability.

19. Regulator and Supervisor
of the Payment and Settlement Systems :
 Increasingly recognized as a core responsibility of central banks.
 RBI taken steps towards integrating the payment system with the
settlement systems for government securities.
 Play an important role in improving overall economic
efficiency.
• They systematically transfer money—currency, paper
instruments such as cheques, and various electronic channels.

20. Developmental Role
 Reserve Bank has added new institutions as the
economy has evolved.Some of the institutions
established by the RBI include:
 Deposit Insurance and Credit Guarantee Corporation
(1962): to provide protection to bank depositors.
 Unit Trust of India (1964): the first mutual fund of the
country.
 Industrial Development Bank of India (1964): a
development finance institution for industry.
 National Bank for Agriculture and Rural
Development (1982): for promoting rural and
agricultural credit.
 Discount and Finance House of India (1988):
a primary dealer in government securities.
 National Housing Bank (1989): promoting
and regulating housing finance.
 Securities and Trading Corporation of India
(1994): a primary dealer.

21. The Reserve Bank's web site posts relevant
information for citizens in 13 local
languages.
Communicating with
the Public
RBI’s emphasis on communication involves a range of activities,
all aimed at sharing knowledge about the financial arena.
 The Reserve Bank’s web site (www.rbi.org.in) provides a full
range of information about his activities, his publications,
his history and his organisation.