NAME ROLL NO. PRIYANK DARJI 07 HARDIK NATHWANI 25 SHASHANK PAI 26 SAGAR PANCHAL 27 DHARMIK PATEL 30 KUSH SHAH 384 SIDDARTH TAWDE 45
INTRODUCTION It is the Central Bank of India. It was Established in 1934 under the RESERVE BANK OF INDIA ACT 1934. Regulatory framework of the country. Degrees of Imperfections cannot be denied Financial system deals in other people’s money Its head quarters is in Mumbai (Maharashtra). 5
FUNCTIONS OF RBI To maintain Monetary Stability To maintain Financial Stability To maintain stable payment system To promote the development of financial infrastructure of markets and systems credit allocation To regulate the overall volume of money
ROLE OF RBI(1) Monopoly of note issue(2) Banks to the Government(3) Bankers Bank(4) Management of foreign exchange reserves(5) Credit control(6) Supervisory Functions 7
SUPERVISORY FUNCTIONS OF RBI Granting license to banks Bank Inspection Control over NBFIs Implementation of the Deposit Insurance Scheme 8
DEVELOPMENTAL / PROMOTIONAL FUNCTIONS OF RBI Development of the Financial System Development of Agriculture Provision of Industrial Finance Provisions of Training Collection of Data Publication of the Reports Promotion of Banking Habits 9 Promotion of Export through Refinance
RECENT POLICY RATES Bank Rate: 6% Repo Rate: 6% Reverse Repo Rate: CRR: 6% SLR: 25% Base Rate: 7.5%-8% Saving Bank Rate: 3.5% Deposit Rate: 6%-7.5% 10
Developmental role: The RBI performs various developmental and promotional activities tosupport national objectives. The RBI has helped to set up a number of development financialinstitutions such as the Industrial Development Bank of India(IDBI), theNational Bank for Agriculture and Rural Development (NABARD), theIndustrial Reconstruction Bank of India(IRBI), the National HousingBank(NHB) and various other institutes. It also has helped in the developmentof UTI, Discount and Finance House of India(DFHI) and the SecuritiesTrading Corporation of India(STCI) to promote and develop financial markets. Another important developmental role that RBI carries out is that it hasmade priority sector lending mandatory for both public and private sectorbanks. RBI in its pursuit of developmental functions so far as banking sector isconcerned established a committee under the chairmanship of Mr.Narasimham to suggest the future direction of banking sector. It suggestedvarious reforms in two phases one in 1991 and another in 1998. Therecommendations include deregulation of interest rate structure, deregulationof the entry norms for private sector banks and foreign banks, bringingNBFCs under the ambit of regulatory framework, capital adequacy etc.