Presentation on Reserve Bank of India

1. PRESENTATION ON RESERVE
BANK OF INDIA
By:
Rupali Chaurasiya
MBA 1st Year

2. RESERVE BANK OF INDIA
• The Reserve Bank of India is India's central bank,
which controls the issue and supply of the Indian
rupee.
• RBI is the regulator of entire Banking in India. RBI
plays an important part in the Development
Strategy of the Government of India
• It was established on April 1, 1935 under the
Reserve Bank of India Act, 1934.
• However from January 1, 1949, RBI was
nationalized by the Government through an Act
called Transfer of Public Ownership Act, 1948

3. STRUCTURE OF RBI
• The central board of directors is the main
committee of the central bank.
• The Government of India appoints the directors
for a four-year term.
• The board consists of a governor, and not more
than four deputy governors.
• The current governor of RBI is Mr Shaktikanta
Das
• Four directors to represent the regional boards

5. FUNCTIONS AND ROLE OF RBI
A. CENTRAL BANKING FUNCTION:
Issue of Bank Notes
Banker to Government
Banker’s Bank
Lender of Last Resort
Controller of Credit
Custodian of Country’s Foreign Currency Reserves

6. FUNCTIONS AND ROLE OF RBI
Manager of Foreign Exchange
Miscellaneous Function

7. FUNCTIONS AND ROLE OF RBI
B. SUPERVISIORY FUNCTION:
 Provide License
 Coverage of Bank Operations
 Liquidation Of Weak Banks
 Branch Expansion
 Training of Bank Personnel
 Restrict Loans and Advances

8. FUNCTIONS AND ROLE OF RBI
C. PROMOTIONAL FUNCTIONS:
 Development of Specialized Financial
Institutions
 Promotes RRB
 Promotes National Housing Bank
 Establishment of Export Import bank of India
 Promotes Research

9. MONETARY POLICY
• Monetary policy is the macroeconomic policy
laid down by the central bank(RBI). It involves
management of money supply and interest
rate and is the demand side economic policy
used by the government of a country to
achieve macroeconomic objectives like
inflation, consumption, growth and liquidity.

10. INSTRUMENTS OF MONETARY POLICY
Quantitative Instruments:
• Cash Reserve Ratio(CRR)
• Statutory Liquidity Ratio(SLR)
• Bank Rate
• Reverse Repo Rate
• Repo Rate

11. INSTRUMENTS OF MONETARY POLICY
Qualitative Instruments:
• Open Market Operations
• Moral Suasion
• Selective Credit Control

12. FISCAL POLICY
• Fiscal Policy represents the government policy
related to tax and expenditure.
• It is a type of economic policy which controls
and regulates the tax system, expenditure,
borrowings and public debt management
within a country.

13. INSTRUMENTS OF FISCAL POLICY
• Taxation
a) Direct Taxes
b) Indirect Taxes
• Public Expenditure
• Public Borrowing

14. TYPES OF FISCAL POLICY
• Expansionary Fiscal Policy
• Contractionary Fiscal Policy