RBI Introduction Functions Issues of currency Bankers to government Bankers to bank Promotional and development functions by Gokila

1. NAME : K.Gokila
CLASS : 1 MBA
ROLL NUMBER : PS6505
SUBJECT : Business
Environment
TOPIC : Functions of RBI
SUBMITTED TO : L.M. Mahalakshmi,
MBA

3. INTRODUCTION
 RBI is the central bank of our country.
 RBI was established on April 1,1935 under the RBI
Act.
 Reserve Bank was initially established in Kolkata
but was permanently moved to Mumbai in 1937.
 Though originally privately owned, since
nationalization in 1949, the Reserve Bank is fully
owned by the Government of India.
 Present Governor of RBI –
Shaktikanta Das

5. FUNCTIONS OF RBI
 Issue of Currency Note
 Banker to Government
 Banker’s Bank
 Controller of Credit
 Managing Foreign Exchange
 Collection and Publication Data
 Regulator and Supervisor of Commercial
Bank
 Promotional or Developmental Functions
 Clearing House Facility

6. ISSUE OF CURRENCY
 Sec 22 of RPI Act.
 Issue Department
 Currency notes are issued in India by
the RBI – Signature by RPI Governor
 One Rupee Coin – Issued by Finance
Ministry – Signed by Finance
Secretary

7. Four Currency Note Printing Press
NASIK & DEWAS MYSORE & SALBONI
 NASIK – Maharashtra
 DE WAS - Madhya
Pradesh
 This Controlled by
Central Government
 MYSORE – Karnataka
 SALBONI – West
Bengal
 This Controlled by
Bharatiya Reserve Bank
Note Mudran Pvt. Ltd.

8. BANKER TO GOVERNMENT
 Banker agent & adviser
 It helps the government to float new loans and
manages the public debt.
 It advises the government on all financial
matters such as loan operations. Investment,
agricultural and industrial finance, banking,
planning, economic development, etc.

9. BANKER’S BANK
 Provides financial assistance
 Leander of the last resort

10. CONTROLLER OF CREDIT
 A major function of the RPI is to
formulate and administer the
country’s monetary policy.
 Controls the volume of credit
 Marginal standing facility

11. MANAGING FOREIGN
EXCHANGE
 The RPI acts as the custodian of
India reserve of International
currencies.
 Removing fluctuation from exchange
market & maintaining competitive &
stable exchange rate

12. COLLECTION & PUBLICATION
OF DATA
o Collects & Complies the statistical
data on banking & Financial
Operations.
o The Central Bank conducts surveys
and publishers reports and bulletins.
o It maintains relation with international
financial institutions such as World
Bank, IMF, etc.

13. REGULATORY AND
SUPERVISORY FUNCTIONS
 Regulator & Supervisor of
Commercial & Co-operative Banks.
 Granting License to banks.
 Branch expansion , manages liquidity
and assets , Management & methods
of working of commercial banks.

14. CLEARING HOUSE
FACILITY
o The clearing house is a voluntary association of
banks under the management of a bank where
the settlement accounts are maintained.
o Clearing Houses are managed by Reserve Bank
of India and other centers managed by various
Public Sector Banks managing the clearing
houses.

15. PROMOTIONAL OR
DEVELOPMENTAL FUNCTIONS
 Promotion of Banking Habit
 Provision of finance Industrial finance and
Agricultural
 The RBI has helped in the settings of the
IFCI, the SFCs, the UTI, the IDBI, the
Agricultural Refinance Cooperation of India
, etc.
 The RBI has also taken initiative for
widening financial facilities for foreign
trade.

16. CONCLUSION
 Central Bank plays important role in
achieving economic growth of a developing
country.
 RBI is an autonomous body promoted by
the government of India and is
headquartered at Mumbai treasury foreign
exchange movements and is also the
primary regulator for banking and non-
banking financial institutions.
 The RBI operates a number of government
mints that produce currency and coins.