The Reserve Bank of India (RBI) is India's central banking institution that controls monetary policy and regulates banking. It was established in 1935 and nationalized in 1949. RBI has 19 regional offices and 10 sub-offices. As India's central bank, RBI issues currency, acts as a banker and debt manager to the government, regulates commercial banks, clears inter-bank transactions, manages foreign exchange reserves, and implements monetary policy tools like repo rates and reserve ratios to influence inflation and economic growth.

1. A
Project Presentation on
Reserve Bank of India
From:
Himanshu
To:
ICAI

2. Introduction
• The Reserve Bank of India (RBI) is India's central
banking institution.
• RBI controls the monetary policy of the Indian rupee.
• It is also called “banker of banks”.
• It has 19 regional offices & 10
sub-offices

3. History of RBI
• The original share capital was divided into shares of 100
each fully paid, which were initially owned entirely by
private shareholders.
• Following India's independence on 15 August 1947, the
RBI was nationalized on 1 January 1949.
• It commenced its operations on 1
April 1935 during the British Rule in
accordance with the provisions of
the Reserve Bank of India Act, 1934.

4. Organizational Structure of RBI
• The Board consists of a Governor,
and 4 Deputy Governors, 4 Directors
to represent the regional boards, 2
from the Ministry of Finance and 10
other directors from various fields.
• The bank is headed by the Governor
and the post is currently held by
economist Urjit Patel.
• There are 4 Deputy Governors BP
Kanungo, S S Mundra, N S
Vishwanathan and Viral Acharya.

5. Role of RBI in Indian Economy
Issuer of Currency
• RBI is the sole body who is authorize to issue currency in
India.
• RBI prints currency at Dewas, Nasik, Mysore and Salboni.
• While coins and one rupee notes are minted by GoI & the
RBI works as an agent of GoI for distributing and handling
of coins.
Banker and Debt Manager to Government
• As a banker to the GoI, RBI maintains its accounts, receive
payments into & make payments out of these accounts.
• RBI also helps GoI to raise money from public via issuing
bonds and government approved securities.

6. Role of RBI in Indian Economy
Cash Crunch Situation
RBI manages the “cash crunch” situation through various
policies like; restriction on withdrawal of cash, printing
high denomination notes etc.
Regulator of the Banking System
RBI uses methods like
• On-site inspections
• off-site surveillance
• scrutiny & periodic meetings to supervise new
bank licenses
• setting capital requirements and regulating
interest rates in specific areas.

7. Role of RBI in Indian Economy
Banker's bank and supervisor
• All the banks in India maintain accounts with RBI which
helps them in clearing & settling inter bank transactions
and customer transactions smoothly & swiftly.
• Maintaining accounts with RBI help banks to maintain
statutory reserve requirements.
• RBI also acts as lender of last resort for all the banks.

8. Role of RBI in Indian Economy
Manager of Foreign Exchange
The RBI’s Financial Markets Department (FMD) participates in
the foreign exchange market by undertaking sales/purchases
of foreign currency to ease volatility in periods of excess
demand for/supply of foreign currency.
Regulator and Supervisor of the Payment and
Settlement Systems
• The RBI focuses on the development and functioning of
safe, secure and efficient payment and settlement
mechanisms.
• Two payment systems are NEFT and RTGS.

9. Clearing House Function
Clearing houses clear and settle transactions relating to various
types of paper based instruments like cheques, drafts, payment
orders, interest / dividend warrants, etc.
The bank arranges the cheques submitted to it for clearing
bank wise and presents it in the clearing house to other
banks.
The aggregate amount or value of cheques
presented by a bank on other banks
represents the claim by that bank on other
banks. Similar claims are made by all the
banks on every other bank in the clearing.

10. Monetary Policies of RBI
Quantitative
Tools
Reserve
Ratios
Open
Market
Operation
Policy
Rates
Qualitative
Tools
Margin
Requirements
Selective
credit
control
Moral
Suasion

11. Bibliography
https://en.wikipedia.org/wiki/Reserve_Bank_of_India
https://www.rbi.org.in/Scripts/AboutusDisplay.aspx