It is among best PPT. It contains some data that is truth about RBI. Please See its very helpful to if Management person need this.

2.  It is the Central Bank Of
INDIA
 Head Quarter-Mumbai,
Maharashtra (Present)
 GOVERNOR – DR.
RAGHURAM GOVIND
RAJAN
 It has “22 Regional
Offices”, most of them
are in State Capital.
 Website:
http://www.rbi.org.in

3. Reserve Bank Of India, Regional Office, Delhi
Entrance with the Yakshini Sculpture depicting “
Prosperity through Agriculture”

4. A statue of Yaksha is stands as guard at RBI
Yaksha is a servant of Kuberji (God of Wealth)

5.  Established in 1st April 1935 under the RESERVE
BANK OF INDIAACT, 1934.
 It was setup on the recommendations of the Royal
Commission on Indian Currency and Finance also
known as “Hilton Young Commission”
 Initially started as entirely owned by Privately Share-
Holders with a paid up capital of 5 Crores.
 The originally share capital was divided into shares of
100 each fully paid.
Continued...

6.  When RBI established its Head Quarter at Calcutta
(now Kolkata).
 After in 1937 it was moved at Bombay (now Mumbai).
 Since Nationalization in 1949, it was fully owned by
Government of India.
 Its very first Governor was “Sir Osborne A. Smith”
(1st April 1935 to 30th June 1937).
 The Very First INDIAN Governor was
“Sir Chintan D. Deshmukh” (11th August 1943 to 30th
June 1949)
 On 27th June 2006, the Government of India
reconstituted the Central Board of Directors of the RBI
with 13 members including Azim Premji and Kumar
Manglam Birla.

7. Sir Osborne A. Smith
1st April 1935 to 30th June 1937
Sir James Taylor
1st July 1937 to 17th February 1943
Sir Chintan D. Deshmukh
11th August 1943 to 30th June 1949
Continued...

8. Sir Benegal Rama Rau
1st July 1949 to 14th January 1957
K G Ambegaokar
14th January 1957 to 28th February 1957
Haravu Venkatanrasimha Iyengar
1st March 1957 to 28th February 1962
Continued...

9. Paresh Chandra Bhattacharya
1st March 1962 to 30th June 1967
Lakshmi Kant Jha
1st July 1967 to 3rd May 1970
Bhaskar Namdeo Adarkar
4th May 1970 to 15th June 1970
Continued...

10. Sarukkai Jagnnathan
16th June 1970 to 19th May 1975
N C Sen Gupta
19th May 1975 to 19th August 1975
K R Puri
20th August 1975 to 2nd May 1977
Continued...

11. Maidavolu Narasimham
2nd May 1977 to 30th November 1977
Dr. Indraprasad Gordhanbhai Patel
1st December 1977 to 15th September 1982
Dr. Manmohan Singh
16th September 1982 to 14th January 1985
Continued...

12. Amitabh Ghosh
15th January 1985 to 2nd February 1985
Rajam N Malhotra
4th February 1985 to 22nd December1990
S Venkitaramanan
22nd December1990 to 22nd December1990
Continued...

13. Dr. Chakravarthi Rangarajan
22nd December 1992 to 21st November 1997
Dr. Bimal Jalan
22nd November 1997 to 6th September 2003
Dr. Yaga Venugopal Reddy
6th September 2003 to 5th September 2008
Continued...

14. Dr. Duvvuri Subbarao
5th September 2008 to 4th September 2013
Dr. Raghuram Govind Rajan
4th September 2013 to Present Date

15.  The Preamble of the Reserve Bank of India describes the
basic functions of the Reserve Bank as :-
 “…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."

16. •Central Board
•Local Board

17.  The Reserve Bank’s affairs are governed by a central
board of directors. The board is appointed by the
Government of India as per the Reserve bank of India
Act.
 Appointed/Nominated for a period of four years.
 Constitute:
 Official Directors
Full-Time: Governor and Four Deputy Governors
Continued...

18.  Non-Official Directors
Nominated by Government: Ten Directors from various fields and
one Government Official
Others: Four Directors – one each from four local boards
 Functions:
General superintendence and direction of the Bank’s
affairs

19. CENTRAL BOARD OF
DIRECTORS

20.  One each for the four regions of the country in
Mumbai, Chennai, Kolkata and New Delhi.
 Membership:
 Consist of five members each
 Appointed by the Government
 For a term of Four Years
 Functions: To advise the Central Board on local
matters and to represent territorial and economic
interest of local cooperative and indigenous banks.
 To perform such other functions as delegated by central board
from time to time.

21.  Regulate and Supervise the Financial System
 Formulate Monetary Policy
 Policy Rates and Reverse Ratio
 Issue of Currency
 Development Role
 Role of RBI in Inflation
 Role of RBI in Economic Development
 Banker to Government
 Banker to Bank
 Manager of Foreign Exchange
 Clearing House Functions
 Regulations of Banking Systems

22.  Objective: To Maintain Public confidence in the
system, protect depositor’s interest and
provide cost effective banking services to
the public.
 What RBI does?
 Prescribes broad parameters of banking operations with in
which the country’s banking and financial system functions.
 The Reserve Bank of India performs this function under the
guidance of the Board for Financial Supervision (BFS).

23.  Objective: Maintain price stability and
ensuring adequate flow of credit in the
economy.
 What RBI does?
 It formulates, implements and monitors the monetary policy.
 Instruments: Quantitative and Qualitative

24. QUANTITAVE MEASURES
It includes BANK RATE and also called discount rate.
It also includes REPO RATE.
Open Market Operations buying and selling of government
securities
Variable Reverse Ratio it includes CRR and SLR
QUALITATIVE MEASURE
1. Direct Action
2. Moral Persuasion
3. Legislation
4. Publicity

25.  Direct Action: The RBI may take direct action
against commercial banks that violate the rules,
orders or advice of the RBI. This punishment is very
severe of a commercial bank.
 Moral persuasion: It is another method by which
RBI may get credit supply expanded or contracted.
By moral pressure it may prohibit or dissuade
commercial banks to deal in speculative business.
Continued...

26.  Legislation:
The RBI may also adopt necessary legislation for
expanding or contracting credit money in the market.
 Publicity:
The RBI may resort to massive advertising campaign
in the news papers, magazines and journals depicting
the poor economic conditions of the country
suggesting commercial banks and other financial
institutions to control credit either by expansion or by
contraction.

27.  BANK RATE
 REPO RATE
 REVERSE REPO RATE
 CASH REVERSE RATIO
 STATUTORY LIQUIDITY RATIO

28.  It’s the interest rate that is charged by a country’s
RBI on loans and advances to control money supply
in the economy and the banking sector.
 This is typically done on a quarterly basis to control
inflation and stabilize the country’s exchange rates.
 A fluctuation in bank rates Triggers a Ripple-Effect
as it impacts every sector of a country’s economy.
 A change in bank rates affects customers as it
influences Prime Interest Rates for personal loans.
 The present Bank Rate is 8.25%

29.  Whenever the banks have any shortage of funds they
can borrow it from the RBI. Repo rate is the rate at
which our banks borrow currency from the RBI.
 A reduction in the repo rate will help banks to get
Money at a cheaper rate.
 When the repo rate increases borrowing from the
RBI becomes more expensive.
 In order to increase the liquidity in the market, the
RBI does it.
 The present Repo Rate is 7.25%

30.  It’s the rate at which the banks park surplus funds
with RBI.
 While the Repo rate is the rate at which the banks
borrow from the RBI
 It is mostly done, when there is surplus liquidity in
the market by the RBI
 The present Reverse Repo Rate is 6.25%

31.  Cash Reserve Ratio (CRR) is the amount of
Cash(liquid cash like gold)that the banks have to
keep with RBI.
 This Ratio is basically to secure solvency of the bank
and to drain out the excessive money from the banks.
 The present CRR Rate is 4%.

32.  It is the amount a commercial bank needs to maintain
in the form of cash, or gold or govt. approved
securities (Bonds) before providing credit to its
customers.
 SLR rate is determined and maintained by the RBI in
order to control the expansion of bank credit.
 The present SLR Rate is 21.50%.

33.  To ensure adequate quantity of supplies of currency
notes and coins of good quality.
 Issues new currency and destroys currency and coins
not fit for circulation.
 It has to keep in forms of gold and foreign securities
as per statutory rules against notes & coins issued.

34.  To develop the quality of banking system in India.
 Performs a wide range of promotional functions to
support national objectives.
 To establish financial institutions of national
importance, for e.g: NABARD,IDBI etc.

35.  Inflation arises when the demand increases and there is a
shortage of supply There are two policies in the hands of
the RBI.
 Monetary Policy:
It includes the interest rates. When the bank increases the
interest rates than there is reduction in the borrowers and
people try to save more as the rate of interest has
increased.
 Fiscal Policy:
It is related to direct taxes and government spending.
When direct taxes increased and government spending
increased than the disposable Income of the people
reduces and hence the demand reduces.

36.  Development of Banking System
 Development of Financial Institutions
 Development of Backward Areas
 Economic Stability
 Economic Growth
 Proper Interest Rate Structure

37.  Performs all banking function for the central and the
state governments and also acts as their banker
excepting that of Jammu and Kashmir. It makes loans
and advances to the States and local authorities. It acts
as adviser to the Government on all monetary and
banking matters.

38.  Maintains banking accounts of all scheduled banks.
 RBI also regulates the opening /installation of ATM
Fresh currency notes for ATMs are supplied by RBI.
 RBI regulates the opening of branches by banks.
 It ensures that all the N.B.F.S follow the Know Your
Customer guidelines.
 The Reserve Bank Of India also regulates the trade of
gold. Currently 17 Indian banks are involved in the
trade of gold in India.
Continued...

39.  RBI has invited applications from more banks for
direct import of gold to curb illegal trade in gold and
increase competition in the market.
 Collection and publication of data.
 It issues guidelines and directives fro the commercial
banks.

40.  Objective: To facilitate external trade and payment and
promote orderly development and the maintenance of
foreign exchange market in India.
 What RBI does?
 It acts as a custodian and manages the Foreign Exchange
Management Act, (FEMA)1999.
 RBI buys and sells foreign currency to maintain the exchange
rate of Indian Rupee v/s foreign currencies like the US Dollar,
Euro, Pound sterling and Japanese Yen.
 Dollar Deposits - LIBOR

41.  The RBI operates
clearing houses to settle
banking transactions. The
RBI manages 14 major
clearing houses of the
country situated in
different major cities. The
State Bank of India and
its associates look after
clearing houses function
in other parts of the
country as an agent of
RBI.

42.  The prime duty of the reserve Bank is to regulate the
banking system of our country in such a way that the
people of the country can trust in the banking Up to
perform its duty.
 The Reserve Bank has following powers in this regard:
 Licensing:
According to the section 22 of the Banking Regulation
Act, every bank has to obtain license from the Reserve
Bank. The Reserve Bank issues such license only to those
banks which fulfill condition of the bank.
Continued...

43.  Management:
Section 10 of the Banking Regulation Act embowered the
Reserve Bank to change manager or director of any bank
if it considers it necessary or desirable.
 Branch Expansion:
Section 23 requires every bank to take prior permission
from Reserve Bank to open new places of business in
India.
 Power of Inspection of Bank:
Under Section 35, the Reserve Bank may inspect any
bank and its books and accounts either at its own
initiative or at the instance of the Central Government.

44.  National Housing Bank (NHB), Deposit Insurance and
Credit Guarantee Corporation of India(DICGC),
Bhartiya Reserve Bank Note Mudran Private
Limited(BRBNMPL)
 Major Stakes:
National Bank for Agriculture and Rural Development
(NABARD)
The Reserve Bank of India has divested its stake in state bank
of India to the Government of India.
RBI has also set up some training Institutions.

45.  High Level Committee – “Mr. M. Narasimham”
(Chairman) submitted Report in November 1991
 Basic Approach:
Greater market orientation would strengthen the financial
system and thus improve its efficiency.
The solvency, health and efficiency of the institutions should
be central to effective financial reforms.
On Directed Investments – (SLR and CRR).
On Directed Credit Programmes.
On the structure of Interest Rates.
On Structural Reorganizations of the Banking Structure.