RBI Responsibilities

1. Roles Of RBI In Indian
Economy
Presented By - Yasmine - MBA - I - B

2. Introduction Of RBI 1
Roles Of RBI 2
Monetary Management 3
The Issue Of Currency 4
Banker And Debt Manager Of
The Government
5
Banker To Banks 6
Financial Regulations And Supervision 7
Development Role 8
Overseas Market Operation 9
Foreign Exchange Management 10
Agenda

3. introduction To RBI
The central bank of the country--Reserve Bank
of India (RBI).
Established in April 1935 with a share capital
of Rs. 5 crores on the basis of the
Recommendations of the Hilton Young
Commission.
The share capital was divided into shares of Rs.
100 each fully paid up which Was entirely
owned by private shareholders in the beginning.
The Government held shares of nominal value
of Rs. 2,20,000.
Reserve Bank of India was nationalized in the
year 1949
No of members on central board is 20 (incl.
governor and 4 deputy governors)

4. Roles Of RBI
Monetary Policy
The Issuer For Currency
Banker & Debt Manager Of The Government
Banker To Banks
Financial Regulations & Supervision
Development Role
Overseas Market Operation
Foreign Exchange Management

5. Monetary Policy
Developing the Monetary Policy in
India is a prerogative of the Reserve
Bank of India. Hence, it is also called
the Monetary Policy of RBI. The RBI is
vested with this responsibility under
the RBI Act, 1934. The Monetary
policy of RBI regulates the money
supply, availability of credit and
interest rates.
RBI Monetary Policy | Repo rate
unchanged, cut in CPI forecast: Key
highlights. - Monetary Policy
Committee (MPC) keeps the repo rate
unchanged at 6.5%.
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Monetary
Policy

6. The Issue For Currency
In India, the issuance of currency is
done by the RBI, the Reserve Bank of
India. Currency is the money present
in circulation in the form of notes or
coins. However, currency does not
depict the entire economy of a
country, and it only showcases a part
of the economic earnings of a nation.
Central Bank has the sole authority
for issue of currency in the country.
In India, RBI has the sole right of
issuing paper currency notes (except
one rupee notes and coins, which are
issued by the Ministry of Finance).
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The Issue Of
Currency

7. Banker & Debt Manager
Of The Government
The Reserve Bank of India (RBI) is
responsible for managing India's
public debt, especially debt
denominated in the domestic currency.
Managing the government's banking
transactions is a key RBI role. Like
individuals, businesses and banks,
governments need a banker to carry
out their financial transactions in an
efficient and effective manner,
including the raising of resources
from the public.
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Banker And Debt
Manager Of The
Government

8. Bankers To Bank
RBI is known as the banker's bank
because it provides other banks with
loans, maintains their cash reserve,
and gives them remittance facilities.
1)Other banks retain their deposits
with RBI.
2) The RBI lends funds to the
commercial banks in times of need.
3) The RBI advises the commercial
banks on monetary matters.
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Bankers To
Bank

9. Financial Regulations And
Supervision
Bank regulation refers to the written
rules that define acceptable behavior
and conduct for financial
institutions.
The Board of Governors, along with
other bank regulatory agencies,
carries out this responsibility. Bank
supervision refers to the
enforcement of these rules.
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Financial
Regulations And
Supervision

10. Development Role
RBI plays in development of rural
economy in India. Reserve Bank of
India. The Rural Planning and Credit
Department formulates policies
relating to rural credit and monitors
timely and adequate flow of credit to
the rural population for agricultural
activities and rural employment
programmes.
In India, RBI (Reserve Bank of India) is
the central bank and saves
commercial banks from bankruptcy.
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Development
Role

11. Overseas Market
Operation
Open market operations refer to the
selling and purchasing of the
treasury bills and government
securities by the central bank of any
country in order to regulate money
supply in the economy. It is one of the
most important ways of monetary
control that is exercised by the
central banks.
The objective of OMO is to regulate
the money supply in the economy. It is
one of the quantitative monetary
policy tools.
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Overseas Market
Operation

12. Foreign Exchange
Management
Main Features of Foreign Exchange
Management Act, 1999
It gives powers to the Central
Government to regulate the flow of
payments to and from a person
situated outside the country. All
financial transactions concerning
foreign securities or exchange cannot
be carried out without the approval
of FEMA.
This act seeks to take care of the
offences related to the foreign
exchange of civil offences. It is
applicable to the whole of India.
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Foreign Exchange
Management

13. Thank You