2.
Introduction
History of RBI
Objective of RBI
Structure of RBI
Functions of RBI
Conclusion
Table of Contents
3.
The origins of the Reserve Bank of India can be traced
to 1926, when the Hilton-Young Commission –
recommended the creation of a central bank for India to
separate the control of currency and credit from the
Government and to improve banking facilities
throughout the country.
The Reserve Bank of India Act
of 1934 established the Reserve Bank and after that in in
1949 the Reserve Bank was nationalized and fully
controlled by India
Introduction
4.
The Preamble to the Reserve Bank of India Act, 1934,
under which it was constituted, specifies its objective as
“to regulate the issue of Bank notes and the 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”.
Objective of RBI
5.
Central Board of Directors
Governor
Deputy Governor
Executive Directors
Principal Chief General Manager
Chief General Manager
General Manager
Deputy General Manager
Assistant General Manager
Manager
Assistant Manager
Support Staff
Structure of RBI
6.
Subsidiaries of the RBI
Deposit Insurance and Credit Guarantee
Corporation (DICGC)
National Housing Bank (NHB)
Bharatiya Reserve Bank Note Mudran Private
Limited (BRBNMPL)
National Bank for Agriculture and Rural
Development (NABARD)
Structure of RBI
7.
Issue of Currency notes
Banker to the government
Banker to the Banks
Bank’s Supervision
Monetary Regulation and Management
Exchange Management and Control
Functions of RBI
8.
Performs all banking function for the central and the
state government and also acts as their banker except
that of Jammu and Kashmir.
Issue of Currency Notes
Banker to the government
To ensure adequate quantity of supplies of currency
Issues new currency and destroys currency & coins
out of circulating
It has to keep gold and foreign security against the
notes and coins issued
9.
Maintains banking accounts of all scheduled banks
RBI also regulates the opening or installation of ATM
RBI regulates the opening of branches by banks
RBI also regulates trade of gold.
It issues guidelines and directives for the commercial
banks.
Banker to the Banks
10.
Maintaining price stability ensuring adequate flow of
credit in the economy
RBI formulates, implements and monitors the
Monitory Policy.
Instruments of regulating monitory Policy are
basically of two categories:
Quantitative Measures
Qualitative Measures
Monetary Regulation and
Management
11.
Quantitative Measures
Bank Rate(7.00%)
Repo Rate(6.50%)
Reverse Repo Rate(6.00%)
Cash Reserve Ratio (CRR)(4.00%)
Statutory Liquidity Ratio (SLR)(21.25%)
Qualitative Measures
Direct Action
Moral Persuasion
Legislation
Publicity
Monetary Regulation
Instruments
12.
Licensing of Banks
Branch Licensing Policy
Approval of Capital, reserves and liquid assets of
banks
Inspection of banks
Audit
Control over amalgamation and liquidation
Banks Supervision
13.
To facilitate external trade and payment and
promote orderly development and maintenance of
foreign exchange market in India.
It acts as a custodian and Manages the Foreign
Exchange Management Act, (FEMA) 1999.
RBI maintains the exchange rate of Rupee v/s
foreign currencies like US Dollar, Euro, Pound and
Japanese Yen.
Exchange Management and
Control
14.
Hence after knowing all the facts and figures relating
the Reserve Bank of India, it is plausible to conclude
that RBI supports our nation’s economy in a vital
manner. Its Policies and decisions, affect the value of
the Indian currency and we can also state that it is
the backbone of Indian Economy.
Conclusion
