GROUP NO:
RESERVE BANK OF INDIA <ul><li>Central bank of India </li></ul><ul><ul><li>Apex institution of the monetary system </li></u...
RESERVE BANK OF INDIA <ul><li>The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank ...
FUNCTIONS: <ul><li>Monetary  Authority </li></ul><ul><li>Regulation and supervision of the financial system </li></ul><ul>...
<ul><li>The recent RBI measures to  pump-prime the economy  </li></ul>
OCTOBER <ul><li>OCTOBER 15 </li></ul><ul><li>Measures:  CRR cut from 7.5 per cent to 6.5 per cent </li></ul><ul><li>Intend...
NOVEMBER <ul><li>NOVEMBER 1 </li></ul><ul><li>Measures:  Statutory liquidity ratio slashed by 1 per cent to 24 per cent </...
DECEMBER <ul><li>  DECEMBER 6 </li></ul><ul><li>Measures:  Repo rate cut under the LAF by 100 bps to 6.5 per cent, reverse...
 
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Group5 a 3-sec_a

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Transcript of "Group5 a 3-sec_a"

  1. 1. GROUP NO:
  2. 2. RESERVE BANK OF INDIA <ul><li>Central bank of India </li></ul><ul><ul><li>Apex institution of the monetary system </li></ul></ul><ul><ul><ul><li>Regulate the functioning of the commercial banks of the country </li></ul></ul></ul><ul><ul><ul><li>Promote the financial and economic stability of a country </li></ul></ul></ul><ul><ul><ul><li>Regulate credit and money supply in the country </li></ul></ul></ul>
  3. 3. RESERVE BANK OF INDIA <ul><li>The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: </li></ul><ul><li>&quot;...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.&quot; </li></ul>
  4. 4. FUNCTIONS: <ul><li>Monetary Authority </li></ul><ul><li>Regulation and supervision of the financial system </li></ul><ul><li>Manager of foreign exchange </li></ul><ul><li>Issuers of currency </li></ul><ul><li>Developmental projects </li></ul><ul><li>Related functions </li></ul>
  5. 5. <ul><li>The recent RBI measures to pump-prime the economy </li></ul>
  6. 6. OCTOBER <ul><li>OCTOBER 15 </li></ul><ul><li>Measures: CRR cut from 7.5 per cent to 6.5 per cent </li></ul><ul><li>Intended impact: To ease liquidity and cut rates with Rs40,000-crore infusion </li></ul><ul><li>Real impact: Prime lending rate down only 50 bps compared to November 2007 </li></ul><ul><li>OCTOBER 29 </li></ul><ul><li>Measures: CRR cut 100 bps to 5.5 per cent, repo rate by 50 bps to 7.5 per cent </li></ul><ul><li>Intended impact: Liquidity infusion of Rs 40,000 crore </li></ul><ul><li>Real impact: Reverse repo rate (at which banks lend to RBI) still high so banks not lending to firms </li></ul>
  7. 7. NOVEMBER <ul><li>NOVEMBER 1 </li></ul><ul><li>Measures: Statutory liquidity ratio slashed by 1 per cent to 24 per cent </li></ul><ul><li>Intended impact: Reduce the money that banks have to keep. </li></ul><ul><li>Real impact: Banks are overcome by fear, which is preventing the flow of credit </li></ul><ul><li>NOVEMBER 15 </li></ul><ul><li>Measures: Cut in provisioning norms for realty, risks weight age for commercial realty and NBFC exposure of banks </li></ul><ul><li>Intended impact : Free up bank capital for further lending </li></ul><ul><li>Real impact: With top players set to go belly up,banks are not keen on lending to this high-risk sector </li></ul>
  8. 8. DECEMBER <ul><li>  DECEMBER 6 </li></ul><ul><li>Measures: Repo rate cut under the LAF by 100 bps to 6.5 per cent, reverse repo by 100 bps to 5.0 per cent </li></ul><ul><li>Intended impact: Encourage banks to lend to productive sectors </li></ul><ul><li>Real impact : Instead of lending to corporate , banks park over Rs 38,000 crore daily with RBI </li></ul><ul><li>DECEMBER 6 </li></ul><ul><li>Measures: Loans to housing finance companies up to Rs 20 lakh to be treated as priority sector lending </li></ul><ul><li>Intended impact: To boost the ailing real estate sector </li></ul><ul><li>Real impact: No significant effect as buyers in urban markets like NCR and Mumbai will not benefit </li></ul>

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