Reserve bank of india b.v.raghunandan-chapter 4


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Reserve bank of india b.v.raghunandan-chapter 4

  1. 1. Reserve Bank of India Introduction, Formation, & Management
  2. 2. Traditional Functions Issue of Bank Notes Banker to the Government Bankers Bank Monetary Regulation Custodian Foreign Exchange
  3. 3. Issue of Notes Minimum Reserve System Issue Department has 14 offices In addition, Currency Chest maintained by SBI, its Associates, or PS Banks
  4. 4. Banker to The Government Maintaining Accounts Receiving the Revenue of the governments Making Payments of the governments Providing Remittance Facilities Issuing Treasury Bills Providing Ways & Means Finance Advisor to the Government Representing the
  5. 5. Bankers’ Bank Ensuring Liquidity of Banks  Lender of Last Clearing House & Remittance Facilities Resort Real Time Gross  Negotiated Dealing Settlement: Introduced in System: Introduced 2004, it is the beginning of a clearing system at the in Aug 1, 2005 for national level SGL A/c holders, it NEFT is an anonymous Electronic Clearing Services order matching Banking system for Research&Technology- Institute for Development & government Research in Technology, securities which set up INFINET & National Financial Switch  Power Over Banks
  6. 6. Power Over the Banks Licensing to carry on banking Licensing for branch expansion Approval of liquidity, capital adequacy and reserves Inspection of banks Appointment of chairmen with the approval Mergers & Acquisitions of banks Compulsory liquidation of banks
  7. 7. Monetary Regulation Quantitative Credit  Selective Credit Control Control -rationing of credit-Bank Rate -margin requirement-open market operation -period allowed for repayment-variable cash reserve ratio -moral suasion
  8. 8. Custodian of Foreign Exchange Reserve Obligation to buy & sell Obligation to buy & sell currencies of members of IMF Receiving export revenue and other receipts from foreign countries Routing all payments outside Determining exchange rates Market intervention
  9. 9. Promotional Functions of RBI Publication of Data  IDRBT in 1995 Deposit Insurance  Indian Financial Corporation Network (INFINET) in Unit Trust of India 1999 Bill Market  National Financial Schemes,1952 & 1971 Switch-ATM sharing by Banking Ombudsmen banks Scheme, 1995-15 cities
  10. 10. Role of RBI in Agricultural Finance Establishment of Agricultural Credit Department in 1935 Development of Co- operative Movement Funding LDBs Setting up ARDC in 1963 Encouragement of RRBs Establishing NABARD in 1982
  11. 11. Role of RBI in Industrial Development Establishment of Term Lending Institutions Credit Guarantee Schemes- Discontinued in 1981 Credit Guarantee Corporation of India Limited in 1971- Taken over by Deposit Insurance Corporation in 1978 Small Loans Guarantee
  12. 12. THANK YOU