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Unni.pps

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Unni.pps

  1. 1. 1<br />WELCOME<br />This presentation has been prepared by Mr. UNNI B T UNDER THE GUIDENCE OF SHRI R R KAMBLE, AGM, PDO as a part of his project work under the RBI Young Scholar Award Scheme.<br />FUNCTIONS OF R B I by UNNI B T <br />
  2. 2. FUNCTIONS OF<br />RESERVE BANK OF INDIA<br />2<br />FUNCTIONS OF R B I by UNNI B T <br />
  3. 3. INTRODUCTION<br />It is the central bank of India<br />The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934<br />3<br />FUNCTIONS OF R B I by UNNI B T <br />
  4. 4. *RBI was set up on recommendation of Hilton young commission<br />*It was started as a shareholder’s <br /> bank with the paid up capital of Rupees five crores<br />*Initially it was privately owned<br />*Initially its headquarters was <br /> located in Kolkata<br />*It was moved to Mumbai in 1937<br />*It was nationalized in 1949<br />4<br />FUNCTIONS OF R B I by UNNI B T <br />
  5. 5. Map showing head office regional offices and branches<br />5<br />FUNCTIONS OF R B I by UNNI B T <br />
  6. 6. 6<br />FUNCTIONS OF R B I by UNNI B T <br />
  7. 7. MAIN FUNCTIONS OF<br />RESERVE BANK OF INDIA<br />7<br /><ul><li>MANAGER OF THE FOREIGN </li></ul> EXCHANGE<br /><ul><li>MONETERY AUTHORITY
  8. 8. DEVOLOPMENTAL ROLES
  9. 9. ECONIMIC RESRARCH AND DATA </li></ul> COLLECTION<br /><ul><li>ISSUE OF CURRENCY
  10. 10. REGULATION AND SUPERVISION</li></ul> OF FINANCIAL SYSTEM <br /><ul><li>BANKER TO GOVERNMENT
  11. 11. BANKER TO BANKS</li></ul>FUNCTIONS OF R B I by UNNI B T <br />
  12. 12. The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:<br />"...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." <br />8<br />FUNCTIONS OF R B I by UNNI B T <br />
  13. 13. ISSUER OF CURRENCY<br /><ul><li>Issues and exchanges currency and coins for circulation.
  14. 14. Collect the coins and notes fit for circulation
  15. 15. Objective: to give the public adequate quantity of</li></ul> supplies of currency notes and coins and in good<br /> quality.<br />9<br />FUNCTIONS OF R B I by UNNI B T <br />
  16. 16. COINS AND CURRENCY NOTES IN CIRCULATION<br />10<br />FUNCTIONS OF R B I by UNNI B T <br />
  17. 17. <ul><li>Reserve bank is the sole authority to issue currency in India
  18. 18. RBI can issue currency of any denomination 2,5,10,20,50,100,500,1000,5000,and10000.</li></ul> (Denomination of 5000&10000 are not issued at present)<br />RESERVE BANK OF INDIA<br /><ul><li>It provides exchange facility
  19. 19. Issue department distributes the coins and currency </li></ul>11<br />FUNCTIONS OF R B I by UNNI B T <br />
  20. 20. 12<br />HOW CURRENCY REACH US<br />Public<br />Issue office<br />Press/mint<br />Currency chest/government treasuries<br />Office of issue department<br />Its agencies, the branches of state bank of India and its associate banks.<br />Distribution of currency and coins<br />state Co-operative Banks and scheduled urban Co-operative banks<br />Branches of public sector banks, scheduled private sector banks<br />Government treasuries and sub treasuries<br />FUNCTIONS OF R B I by UNNI B T <br />
  21. 21. REGULATOR AND SUPERVISOR <br />OF THE FINANCIAL SYSTEM<br />*Prescribes parameters of <br /> banking operations <br />*Objective: maintain public <br /> confidence <br />*protect depositors' interest <br />*provide cost effective <br /> banking<br />13<br />FUNCTIONS OF R B I by UNNI B T <br />
  22. 22. Reserve bank of India regulates and supervises <br />Commercial banks<br />Non banking financial companies <br />All India financial institutions <br />Primary (urban) cooperative banks<br />14<br />FUNCTIONS OF R B I by UNNI B T <br />
  23. 23. BANKING OMBUDSMAN<br />RBI appoints banking ombudsman<br />The Banking Ombudsman does not charge any feefor filing and resolving customers’ complaints<br />There are 15 banking ombudsman.<br />Mostly in state capitals<br />All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme. <br />complaint should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents<br />15<br />FUNCTIONS OF R B I by UNNI B T <br />
  24. 24. MANAGER OFTHEFOREIGN<br />EXCHANGE<br /> Objective<br /><ul><li>To facilitate external trade and payment
  25. 25. promote orderly development of foreign exchange market in India. </li></ul>16<br />FUNCTIONS OF R B I by UNNI B T <br />
  26. 26. 17<br />What R.B.I does….. <br /><ul><li>R B I acts as a custodian/Manages</li></ul> the Foreign Exchange Management Act,<br /> 1999<br /><ul><li>RBI buys and sells foreign currency in case of exigency</li></ul>FUNCTIONS OF R B I by UNNI B T <br />
  27. 27. BANKER TO THE GOVERNMENT<br /><ul><li>Banker to the central government
  28. 28. Banker to state governments
  29. 29. Advises central and state governments in </li></ul> better cash management. <br /><ul><li>Encourages Government securities market</li></ul>18<br />FUNCTIONS OF R B I by UNNI B T <br />
  30. 30. 19<br />R B I<br />MANAGES PUBLIC DEBT<br />RECEIVE AND MAKE PAYMENTS ON BEHALF OF GOVERNMENT<br />TRANSACT GOVERNMENT BUSINESS<br />MANAGES ACCOUNTS OF GOVERNMENT DEPARTMENTS<br />CENTRAL ACCOUNT SECTION AT NAGPUR CONSOLIDATES GOVERNMENTS BANKING TRANSACTIONS<br />OVERSEES AUCTION OF TREASURY BILLS<br />MAKE WAYS AND MEANS ADVANCES TO THE GOVERNMENTS<br />FUNCTIONS OF R B I by UNNI B T <br />
  31. 31. BANKERS' BANK AND LENDER OF THE LAST RESORT<br />20<br /><ul><li>NON-INTEREST EARNING CURRENT ACCOUNTS
  32. 32. REMITTANCE FACILITIES
  33. 33. LOANS AND ADVANCES
  34. 34. LENDER OF THE LAST RESORT</li></ul>FUNCTIONS OF R B I by UNNI B T <br />
  35. 35. MONETARY AUTHORITY<br />*Formulates, implements and monitors <br />the monetary policy. <br />*Objective: maintaining price stability <br /> and ensuring adequate flow <br /> of credit to productive sectors.<br />21<br />FUNCTIONS OF R B I by UNNI B T <br />
  36. 36. CREDIT CONTROL<br /><ul><li>R B I CONTROLS THE FLOW OF THE</li></ul> CREDIT TO THE MARKET<br /><ul><li>FOR THE SMOOTH FUNCTIOING OF THE </li></ul> ECONOMY RBI CONTROLS CREDIT <br /> THROUGH<br /><ul><li>Direct Instruments
  37. 37. Indirect Instruments</li></ul>22<br />FUNCTIONS OF R B I by UNNI B T <br />
  38. 38. Direct Instruments<br /><ul><li>Cash Reserve Ratio (CRR):
  39. 39. Statutory Liquidity Ratio (SLR):
  40. 40. Refinance facilities</li></ul>23<br />FUNCTIONS OF R B I by UNNI B T <br />
  41. 41. Indirect Instruments<br /><ul><li>Liquidity Adjustment Facility (LAF)
  42. 42. Open Market Operations (OMO)
  43. 43. Market Stabilisation Scheme (MSS)
  44. 44. Repo/reverse repo rate
  45. 45. Bank rate</li></ul>24<br />FUNCTIONS OF R B I by UNNI B T <br />
  46. 46. DEVOLOPMENTAL ROLES<br />Performs a wide range of functions to support national objectives such as ensuring orderly growth and development of financial markets and institutions, creating institutions to serve specialised financial needs and extending the organised financial sector to all parts of the economy. <br />Initiatives include<br /><ul><li>Promoting banking habit
  47. 47. Extend banking facilities to rural and semi urban areas
  48. 48. Establish and promote new specialized financing agencies</li></ul>25<br />FUNCTIONS OF R B I by UNNI B T <br />
  49. 49. ECONOMIC RESERCH ,DATA COLLECTION AND <br />KNOWLEDGE SHARING<br />R B I’s economic research focuses on study and analysis of domestic and international issues affecting the Indian economy.<br />This important work is designed to:<br /><ul><li> Educate the public
  50. 50. Provide reliable, data-driven</li></ul>information for policy and<br />decision-making<br /><ul><li> Supply accurate and timely data for</li></ul>academic research as well as the<br />general public<br />26<br />FUNCTIONS OF R B I by UNNI B T <br />
  51. 51. INITIATIVE TOWARDS FINANCIAL LITERACY AND FINANCIAL INCLUSION<br /><ul><li>Encouraging provision of affordable financial</li></ul> services like zero-balance, no-frills bank accounts,<br /> access to payments and remittance facilities,<br /> savings, loans and insurance services<br /><ul><li> Expanding banking outreach through use of</li></ul> technology, such as banking by cell phone, smart<br /> cards etc…<br /><ul><li> Encouraging bank branch expansion in parts of</li></ul> the country with few banking facilities<br /><ul><li> Facilitating use of specified persons to act as</li></ul> agents to perform banking functions in hard-to reach<br /> parts of the country<br />27<br />FUNCTIONS OF R B I by UNNI B T <br />
  52. 52. Financial inclusion comics<br />28<br />FUNCTIONS OF R B I by UNNI B T <br />
  53. 53. SUBSIDIARIES SET UP BY R B I<br />29<br />FUNCTIONS OF R B I by UNNI B T <br />
  54. 54. 30<br />R B I Website:www.rbi.org.in<br />FUNCTIONS OF R B I by UNNI B T <br />
  55. 55. ORGANISATION OF RBI<br />31<br />FUNCTIONS OF R B I by UNNI B T <br />
  56. 56. Central Board of Directors by the Numbers<br />Official Directors<br /><ul><li> 1 Governor
  57. 57. 4 Deputy Governors, at a maximum</li></ul>Non-Official Directors<br /><ul><li> 4 directors—nominated by the Central Government to represent</li></ul>each local board<br /><ul><li> 10 directors nominated by the Central Government with expertise</li></ul>in various segments of the economy<br /><ul><li> 1 representative of the Central Government
  58. 58. 6 meetings—at a minimum—each year
  59. 59. 1 meeting—at a minimum—each quarter</li></ul>32<br />FUNCTIONS OF R B I by UNNI B T <br />
  60. 60. 33<br />THANK YOU<br />This presentation has been prepared by mr.UNNI B T UNDER THE GUIDENCE OF SHRI RR KAMBLE AGM, PDO as a part of his project work under the RBI Young Scholar Award Scheme.<br />FUNCTIONS OF R B I by UNNI B T <br />

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