The Reserve Bank of India was established in 1935 to regulate banking and credit in India. It was established with a share capital of 5 crores and nationalized in 1949. As India's central bank, the RBI guides and regulates the financial system, maintains monetary stability, and acts as a bank for the government and other banks. It performs key functions such as issuing currency, controlling credit and foreign exchange rates, supervising banks, and promoting rural financing to achieve its goals of maintaining monetary and financial stability.
The Reserve Bank of India was established in 1935 according to the recommendations of the Hilton Young Commission. It was created to separate currency and credit control from the government and expand banking facilities across India. The RBI commenced operations on April 1, 1935 in Kolkata but its central office was permanently moved to Mumbai in 1937. Some of the RBI's key roles include regulating commercial banks, NBFCs, and payment systems. It is made up of a Central Board of Directors as well as regional and local boards that represent economic interests. The RBI has various departments that focus on policy issues and operational functions.
Reserve Bank of India- Management of Financial Services projectPriyanka Bachkaniwala
The document provides information about the Reserve Bank of India (RBI), including that it was established in 1934 and serves as India's central bank. It discusses the RBI's history and governance structure, with a central board and local boards. The key roles of the RBI are outlined as monetary authority, bank regulator, banker to the government, manager of foreign exchange, currency issuer, and developmental roles. The document also notes some of the RBI's subsidiaries and current monetary policy rates.
This document provides an overview of Non-Banking Financial Companies (NBFCs) in India. It discusses what NBFCs are, how they differ from banks, the regulatory environment for NBFCs including capital adequacy norms and public deposit regulations. It also covers the growth and classification of NBFCs over time as well as examples of organizations operating in the NBFC space like Reliance Capital and IKM Investors Services Limited.
The document provides an overview of the Reserve Bank of India (RBI), including its history, functions, and monetary policy tools. It establishes that the RBI was established in 1935 and serves as India's central bank, regulating the country's banking system and controlling its money supply. The RBI engages in functions like managing foreign exchange, acting as a banker to the government and other banks, issuing currency, and pursuing developmental objectives through specialized programs. It aims to maintain price stability and manage inflation through various quantitative and qualitative monetary policy instruments.
Introduction, Organization Structure of RBI, Reason for establishment of RBI, Functions of RBI, Role of RBI in Inflation, Control Measures, Policy Rate in Indian Banking
This document presents a fundamental analysis of the banking sector in India. It analyzes key metrics like net interest margin, net interest income, capital adequacy ratio, and non-performing assets for several major public and private sector banks from 2013-2015. The analysis finds that private banks generally had higher net interest margins but higher non-performing assets than public sector banks. It concludes that while the banking sector size is increasing, high interest rates and low investor confidence have led to shrinking growth.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 under the RBI Act and was nationalized in 1949. RBI regulates monetary policy and banking operations in India through various quantitative and qualitative methods. It acts as a bank for the government and commercial banks and manages foreign exchange reserves and monetary policy tools like bank rate, open market operations, and cash reserve ratio to regulate money supply.
The document provides information on the Reserve Bank of India (RBI), which is India's central bank. It details that the RBI was established in 1935 and nationalized after independence. The document outlines the RBI's objectives such as managing monetary policy, maintaining price stability, and facilitating agriculture and industrial finance. It also describes the RBI's roles like being the sole issuer of currency, acting as the banker and debt manager to the government, regulating other banks, and using tools like open market operations to control money supply and credit.
The Reserve Bank of India was established in 1935 according to the recommendations of the Hilton Young Commission. It was created to separate currency and credit control from the government and expand banking facilities across India. The RBI commenced operations on April 1, 1935 in Kolkata but its central office was permanently moved to Mumbai in 1937. Some of the RBI's key roles include regulating commercial banks, NBFCs, and payment systems. It is made up of a Central Board of Directors as well as regional and local boards that represent economic interests. The RBI has various departments that focus on policy issues and operational functions.
Reserve Bank of India- Management of Financial Services projectPriyanka Bachkaniwala
The document provides information about the Reserve Bank of India (RBI), including that it was established in 1934 and serves as India's central bank. It discusses the RBI's history and governance structure, with a central board and local boards. The key roles of the RBI are outlined as monetary authority, bank regulator, banker to the government, manager of foreign exchange, currency issuer, and developmental roles. The document also notes some of the RBI's subsidiaries and current monetary policy rates.
This document provides an overview of Non-Banking Financial Companies (NBFCs) in India. It discusses what NBFCs are, how they differ from banks, the regulatory environment for NBFCs including capital adequacy norms and public deposit regulations. It also covers the growth and classification of NBFCs over time as well as examples of organizations operating in the NBFC space like Reliance Capital and IKM Investors Services Limited.
The document provides an overview of the Reserve Bank of India (RBI), including its history, functions, and monetary policy tools. It establishes that the RBI was established in 1935 and serves as India's central bank, regulating the country's banking system and controlling its money supply. The RBI engages in functions like managing foreign exchange, acting as a banker to the government and other banks, issuing currency, and pursuing developmental objectives through specialized programs. It aims to maintain price stability and manage inflation through various quantitative and qualitative monetary policy instruments.
Introduction, Organization Structure of RBI, Reason for establishment of RBI, Functions of RBI, Role of RBI in Inflation, Control Measures, Policy Rate in Indian Banking
This document presents a fundamental analysis of the banking sector in India. It analyzes key metrics like net interest margin, net interest income, capital adequacy ratio, and non-performing assets for several major public and private sector banks from 2013-2015. The analysis finds that private banks generally had higher net interest margins but higher non-performing assets than public sector banks. It concludes that while the banking sector size is increasing, high interest rates and low investor confidence have led to shrinking growth.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 under the RBI Act and was nationalized in 1949. RBI regulates monetary policy and banking operations in India through various quantitative and qualitative methods. It acts as a bank for the government and commercial banks and manages foreign exchange reserves and monetary policy tools like bank rate, open market operations, and cash reserve ratio to regulate money supply.
The document provides information on the Reserve Bank of India (RBI), which is India's central bank. It details that the RBI was established in 1935 and nationalized after independence. The document outlines the RBI's objectives such as managing monetary policy, maintaining price stability, and facilitating agriculture and industrial finance. It also describes the RBI's roles like being the sole issuer of currency, acting as the banker and debt manager to the government, regulating other banks, and using tools like open market operations to control money supply and credit.
The Reserve Bank of India (RBI) is the central bank of India established in 1935. It regulates banking, manages currency and monetary policy in India. Key functions of RBI include issuing currency, acting as banker and lender of last resort to commercial banks, managing foreign exchange reserves, and regulating banking sectors through various policy tools like repo rate, cash reserve ratio, and statutory liquidity ratio. RBI aims to maintain price stability and adequate credit flow in the economy.
This document summarizes a study on the non-banking financial services crisis and risk management in India. It discusses the reasons for and impact of the NBFC crisis, including over-leveraging, excessive concentration of assets, and misconduct by some company promoters. It outlines the regulatory framework for NBFCs in India and steps taken to address the crisis, such as credit support from banks and the central bank. It concludes that the crisis highlighted shortcomings but will lead to better governance and regulation to support sustainable growth of the NBFC sector.
Non-performing assets (NPAs) are loans that are in default or close to being in default. The document discusses NPAs in Indian banks, including what qualifies a loan as an NPA, how NPAs are classified and provisioned for, and reasons why loan accounts may become NPAs, including internal factors within banks and borrowers as well as external economic factors. Key points are that an asset is considered non-performing if interest or principal has been due for over 90 days, NPAs are classified as substandard, doubtful or loss, and banks must make provisions against NPAs which reduces their profits.
- The document discusses non-banking financial corporations (NBFCs) in India and how they compare to banks. It notes that NBFCs play an important role in sectors like transport and infrastructure as well as employment and wealth creation.
- NBFCs are regulated by the Reserve Bank of India but have more flexible regulations than banks. For example, it is easier to start an NBFC and they can engage in non-financial activities. However, they do not have the same legal powers as banks for recovery.
- While NBFCs have grown significantly and cater to more customers, banks still dominate the financial sector in India, having more stringent rules around deposits and priority lending. Overall, NBFCs provide
The document summarizes the Reserve Bank of India (RBI), India's central banking institution established in 1935. It discusses RBI's role in maintaining economic stability and advising the government. The document also outlines RBI's functions such as issuing bank notes, acting as a banker to the government and controller of credit. Additionally, it examines RBI's monetary policy tools for regulating money supply and credit, including repo and reverse repo rates, cash reserve ratio, and open market operations. Finally, the document defines fiscal policy and its objectives of influencing price levels, consumption, employment and growth through public expenditure, taxation and debt management.
The document is a student project on the Reserve Bank of India (RBI). It provides background on the student and university, then acknowledges those who helped with the project. The bulk of the document discusses the history and functions of the RBI as the central bank of India, including its roles in banking regulation, monetary policy, and promoting economic development. Key points covered include the RBI's nationalization in 1949, its monetary policy tools like interest rates and reserve requirements, and supervisory and developmental functions.
The Reserve Bank of India (RBI) is India's central banking institution established in 1935. It controls monetary policy and ensures price stability in India. RBI was initially owned privately but was nationalized in 1949. RBI plays an important role in the development strategy of the Indian government and oversees financial inclusion initiatives. It is governed by a 21-member Central Board of Directors including the Governor, Deputy Governors, and government and regional representatives.
The Reserve Bank of India is the central bank of India established in 1935. It was initially privately owned but was nationalized in 1949. The RBI regulates monetary policy and the country's banking system to promote economic growth and stability. It controls credit and money supply through various tools like open market operations, bank rates, and reserve requirements. The RBI also acts as a bank, lender, and manager of foreign exchange for India.
Treasury bills are short-term government debt instruments used to finance budgetary gaps. They come in 91, 182, and 364-day maturities and are highly liquid. Ordinary treasury bills are issued publicly while ad-hoc bills are privately placed with the central bank. At a recent auction in India, 91-day bills were cut-off at 11.0031% yield and 364-day bills at 10.4649% yield. Based on historical trends, India's treasury bill yields are expected to remain between 8.5-9% going forward.
The Reserve Bank of India (RBI) is the central bank of India established in 1935. It regulates monetary policy and the banking system in India. Key functions of RBI include issuing currency, acting as a banker to the government and banks, managing foreign exchange reserves, and regulating interest rates through tools like the repo rate to control inflation. RBI uses both quantitative measures like changing the repo rate, cash reserve ratio, and statutory liquidity ratio as well as qualitative measures like moral persuasion to implement monetary policy goals.
The document discusses the Reserve Bank of India (RBI), which serves as India's central bank, and its role in regulating commercial banks in India. It outlines the history and organizational structure of the RBI, its key functions including monetary policy, banking supervision, and currency management. The document also describes the different types of commercial banks that operate in India, including public sector banks, private sector banks, and foreign banks.
Non Performing Assets A Comparative Study of Public and Private Sector Banksijtsrd
Non Performing Assets are a burning topic of concern for the private as well as public sector banks, as managing and controlling NPA is very important. The current paper with the help of secondary data, from RBI website, tried to analyse the 5 years, 2017 2022 net non performing asset data of 2 private and 2 public sector banks. KEY WORDS Non performing assets, public sector banks, private sector banks. K C Manohar Yadav | D. Jakir Hussain "Non-Performing Assets: A Comparative Study of Public & Private Sector Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52050.pdf Paper URL: https://www.ijtsrd.com/management/other/52050/nonperforming-assets-a-comparative-study-of-public-and-private-sector-banks/k-c-manohar-yadav
RESERVE BANK OF INDIA AND ITS FUNCTIONS BY P. SAI PRATHYUSHASaiLakshmi115
The Reserve Bank of India (RBI) is the central bank of India, established in 1935. It has several objectives such as regulating the issue of banknotes and maintaining monetary stability in India. RBI has a governor and deputy governors that oversee its organizational structure. Its key functions include financial supervision of banks and non-banking institutions, regulating the financial system, facilitating payments and settlements, managing government finances and foreign exchange, issuing currency, acting as a bank for banks and controlling credit in the economy. In conclusion, RBI plays a vital role in supporting India's economy through its diverse responsibilities and operations.
Basel III is a global regulatory framework that aims to strengthen bank capital requirements and introduces new regulatory requirements on bank liquidity and leverage. The document outlines the key elements of Basel III including the three pillars of capital adequacy, supervisory review, and market discipline. It discusses the challenges Indian banks may face in implementing the new capital, leverage, and liquidity requirements and how this may impact their profitability. The higher capital requirements under Basel III will be difficult for Indian banks, especially public sector banks, to meet and may require raising over 1.5 trillion rupees in additional capital.
Understanding the Reserve Bank Of Indiakiran kumar
The Reserve Bank of India (RBI) is the central bank of India established in 1935 in Kolkata. Some key roles and responsibilities of RBI include acting as the banker to the central and state governments in India, regulating the country's banking and financial system, managing the country's foreign exchange and gold reserves, acting as a lender of last resort to banks, and formulating and implementing the country's monetary policy to control inflation and ensure financial stability. RBI oversees various functions including currency issue, development initiatives, and clearing house operations across major cities. It regulates commercial banks through various policies related to licensing, management, branch expansion, and inspections.
The document provides an overview of the Reserve Bank of India (RBI) and its role in the Indian banking sector. As India's central bank, the RBI regulates banks, manages currency and monetary policy, acts as both the government and banks' banker, oversees foreign exchange, and works to maintain financial stability. The RBI was established in 1935 and is headquartered in Mumbai. It aims to ensure adequate credit flow, price stability, and public confidence in India's banking system.
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Nirav Modi, a billionaire diamond jeweler, looted over 11,400 crore rupees from Punjab National Bank through fraudulent Letters of Undertaking. Using his connections with a PNB official, Modi was able to obtain over 150 LoUs without proper verification or collateral. By the time the scam was discovered, Modi and his accomplice Mehul Choksi had fled the country. So far authorities have seized assets worth over 5,100 crore rupees, but 6,300 crore rupees is still outstanding from the largest banking fraud in Indian history. The scam highlighted weaknesses in bank security controls that allowed such large-scale fraud.
RBI & Its role in the Indian Banking SectorLeroy J D
The Reserve Bank of India (RBI) is India's central bank and regulates the entire banking system. It was established in 1935 and nationalized in 1949. RBI controls monetary policy, issues currency, acts as a banker and debt manager to the government, regulates and supervises banks, and plays a developmental role in the economy. As the regulator of banks, RBI uses various tools like cash reserve ratio, statutory liquidity ratio, repo and reverse repo rates, open market operations, and the marginal cost of funds based lending rate to regulate money supply and control inflation in the country.
The Reserve Bank of India (RBI) was established in 1934 and serves as India's central bank. It oversees monetary policy and regulates the banking system. The RBI is governed by a central board and has departments focused on key functions like currency issuance, banking supervision, and economic research. It also acts as the banker to the central government and commercial banks.
The Reserve Bank of India (RBI) is the central bank of India and was established in 1935. RBI was initially a private shareholders bank but was nationalized in 1949. RBI regulates monetary policy and the banking system in India. It acts as a bank, financial advisor, and debt manager to the government of India. RBI also regulates foreign exchange rates and manages the country's foreign currency reserves. As the central bank, RBI oversees payment systems, issues currency, and influences the money supply through various monetary policy tools.
The Reserve Bank of India (RBI) is the central bank of India established in 1935. It regulates banking, manages currency and monetary policy in India. Key functions of RBI include issuing currency, acting as banker and lender of last resort to commercial banks, managing foreign exchange reserves, and regulating banking sectors through various policy tools like repo rate, cash reserve ratio, and statutory liquidity ratio. RBI aims to maintain price stability and adequate credit flow in the economy.
This document summarizes a study on the non-banking financial services crisis and risk management in India. It discusses the reasons for and impact of the NBFC crisis, including over-leveraging, excessive concentration of assets, and misconduct by some company promoters. It outlines the regulatory framework for NBFCs in India and steps taken to address the crisis, such as credit support from banks and the central bank. It concludes that the crisis highlighted shortcomings but will lead to better governance and regulation to support sustainable growth of the NBFC sector.
Non-performing assets (NPAs) are loans that are in default or close to being in default. The document discusses NPAs in Indian banks, including what qualifies a loan as an NPA, how NPAs are classified and provisioned for, and reasons why loan accounts may become NPAs, including internal factors within banks and borrowers as well as external economic factors. Key points are that an asset is considered non-performing if interest or principal has been due for over 90 days, NPAs are classified as substandard, doubtful or loss, and banks must make provisions against NPAs which reduces their profits.
- The document discusses non-banking financial corporations (NBFCs) in India and how they compare to banks. It notes that NBFCs play an important role in sectors like transport and infrastructure as well as employment and wealth creation.
- NBFCs are regulated by the Reserve Bank of India but have more flexible regulations than banks. For example, it is easier to start an NBFC and they can engage in non-financial activities. However, they do not have the same legal powers as banks for recovery.
- While NBFCs have grown significantly and cater to more customers, banks still dominate the financial sector in India, having more stringent rules around deposits and priority lending. Overall, NBFCs provide
The document summarizes the Reserve Bank of India (RBI), India's central banking institution established in 1935. It discusses RBI's role in maintaining economic stability and advising the government. The document also outlines RBI's functions such as issuing bank notes, acting as a banker to the government and controller of credit. Additionally, it examines RBI's monetary policy tools for regulating money supply and credit, including repo and reverse repo rates, cash reserve ratio, and open market operations. Finally, the document defines fiscal policy and its objectives of influencing price levels, consumption, employment and growth through public expenditure, taxation and debt management.
The document is a student project on the Reserve Bank of India (RBI). It provides background on the student and university, then acknowledges those who helped with the project. The bulk of the document discusses the history and functions of the RBI as the central bank of India, including its roles in banking regulation, monetary policy, and promoting economic development. Key points covered include the RBI's nationalization in 1949, its monetary policy tools like interest rates and reserve requirements, and supervisory and developmental functions.
The Reserve Bank of India (RBI) is India's central banking institution established in 1935. It controls monetary policy and ensures price stability in India. RBI was initially owned privately but was nationalized in 1949. RBI plays an important role in the development strategy of the Indian government and oversees financial inclusion initiatives. It is governed by a 21-member Central Board of Directors including the Governor, Deputy Governors, and government and regional representatives.
The Reserve Bank of India is the central bank of India established in 1935. It was initially privately owned but was nationalized in 1949. The RBI regulates monetary policy and the country's banking system to promote economic growth and stability. It controls credit and money supply through various tools like open market operations, bank rates, and reserve requirements. The RBI also acts as a bank, lender, and manager of foreign exchange for India.
Treasury bills are short-term government debt instruments used to finance budgetary gaps. They come in 91, 182, and 364-day maturities and are highly liquid. Ordinary treasury bills are issued publicly while ad-hoc bills are privately placed with the central bank. At a recent auction in India, 91-day bills were cut-off at 11.0031% yield and 364-day bills at 10.4649% yield. Based on historical trends, India's treasury bill yields are expected to remain between 8.5-9% going forward.
The Reserve Bank of India (RBI) is the central bank of India established in 1935. It regulates monetary policy and the banking system in India. Key functions of RBI include issuing currency, acting as a banker to the government and banks, managing foreign exchange reserves, and regulating interest rates through tools like the repo rate to control inflation. RBI uses both quantitative measures like changing the repo rate, cash reserve ratio, and statutory liquidity ratio as well as qualitative measures like moral persuasion to implement monetary policy goals.
The document discusses the Reserve Bank of India (RBI), which serves as India's central bank, and its role in regulating commercial banks in India. It outlines the history and organizational structure of the RBI, its key functions including monetary policy, banking supervision, and currency management. The document also describes the different types of commercial banks that operate in India, including public sector banks, private sector banks, and foreign banks.
Non Performing Assets A Comparative Study of Public and Private Sector Banksijtsrd
Non Performing Assets are a burning topic of concern for the private as well as public sector banks, as managing and controlling NPA is very important. The current paper with the help of secondary data, from RBI website, tried to analyse the 5 years, 2017 2022 net non performing asset data of 2 private and 2 public sector banks. KEY WORDS Non performing assets, public sector banks, private sector banks. K C Manohar Yadav | D. Jakir Hussain "Non-Performing Assets: A Comparative Study of Public & Private Sector Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52050.pdf Paper URL: https://www.ijtsrd.com/management/other/52050/nonperforming-assets-a-comparative-study-of-public-and-private-sector-banks/k-c-manohar-yadav
RESERVE BANK OF INDIA AND ITS FUNCTIONS BY P. SAI PRATHYUSHASaiLakshmi115
The Reserve Bank of India (RBI) is the central bank of India, established in 1935. It has several objectives such as regulating the issue of banknotes and maintaining monetary stability in India. RBI has a governor and deputy governors that oversee its organizational structure. Its key functions include financial supervision of banks and non-banking institutions, regulating the financial system, facilitating payments and settlements, managing government finances and foreign exchange, issuing currency, acting as a bank for banks and controlling credit in the economy. In conclusion, RBI plays a vital role in supporting India's economy through its diverse responsibilities and operations.
Basel III is a global regulatory framework that aims to strengthen bank capital requirements and introduces new regulatory requirements on bank liquidity and leverage. The document outlines the key elements of Basel III including the three pillars of capital adequacy, supervisory review, and market discipline. It discusses the challenges Indian banks may face in implementing the new capital, leverage, and liquidity requirements and how this may impact their profitability. The higher capital requirements under Basel III will be difficult for Indian banks, especially public sector banks, to meet and may require raising over 1.5 trillion rupees in additional capital.
Understanding the Reserve Bank Of Indiakiran kumar
The Reserve Bank of India (RBI) is the central bank of India established in 1935 in Kolkata. Some key roles and responsibilities of RBI include acting as the banker to the central and state governments in India, regulating the country's banking and financial system, managing the country's foreign exchange and gold reserves, acting as a lender of last resort to banks, and formulating and implementing the country's monetary policy to control inflation and ensure financial stability. RBI oversees various functions including currency issue, development initiatives, and clearing house operations across major cities. It regulates commercial banks through various policies related to licensing, management, branch expansion, and inspections.
The document provides an overview of the Reserve Bank of India (RBI) and its role in the Indian banking sector. As India's central bank, the RBI regulates banks, manages currency and monetary policy, acts as both the government and banks' banker, oversees foreign exchange, and works to maintain financial stability. The RBI was established in 1935 and is headquartered in Mumbai. It aims to ensure adequate credit flow, price stability, and public confidence in India's banking system.
Financial sector plays a pivotal role in the economic development, but, in recent time, it has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. The banking sector has always been one of the important sectors for investment. In the time of uncertainty, some are arguing that the economies are in the process of recovery, and while others are opining that the world is set for another recession soon. In order to resist negative shocks and maintain financial stability, it is important to identify the Performance of Indian Banking Sector. The current study is mainly concerned with the analysis of Performance Of banking sector in India, that reflects the impact of new competitive environment on the bank’s performance in terms of various selected parameters. The article considered the variables like balance sheet operations, efficiency, profitability ,Capital Adequacy, Asset Quality, Sect oral deployment of bank credit, Technological Development, Customer services and Financial Inclusion for a period of 6 years from 2011 to 16. The Data was collected through secondary sources from Statistical Tables relating to banks in India. The results have found strong evidence poor profitability and inefficiency of managing the assets in the year 2016.
Nirav Modi, a billionaire diamond jeweler, looted over 11,400 crore rupees from Punjab National Bank through fraudulent Letters of Undertaking. Using his connections with a PNB official, Modi was able to obtain over 150 LoUs without proper verification or collateral. By the time the scam was discovered, Modi and his accomplice Mehul Choksi had fled the country. So far authorities have seized assets worth over 5,100 crore rupees, but 6,300 crore rupees is still outstanding from the largest banking fraud in Indian history. The scam highlighted weaknesses in bank security controls that allowed such large-scale fraud.
RBI & Its role in the Indian Banking SectorLeroy J D
The Reserve Bank of India (RBI) is India's central bank and regulates the entire banking system. It was established in 1935 and nationalized in 1949. RBI controls monetary policy, issues currency, acts as a banker and debt manager to the government, regulates and supervises banks, and plays a developmental role in the economy. As the regulator of banks, RBI uses various tools like cash reserve ratio, statutory liquidity ratio, repo and reverse repo rates, open market operations, and the marginal cost of funds based lending rate to regulate money supply and control inflation in the country.
The Reserve Bank of India (RBI) was established in 1934 and serves as India's central bank. It oversees monetary policy and regulates the banking system. The RBI is governed by a central board and has departments focused on key functions like currency issuance, banking supervision, and economic research. It also acts as the banker to the central government and commercial banks.
The Reserve Bank of India (RBI) is the central bank of India and was established in 1935. RBI was initially a private shareholders bank but was nationalized in 1949. RBI regulates monetary policy and the banking system in India. It acts as a bank, financial advisor, and debt manager to the government of India. RBI also regulates foreign exchange rates and manages the country's foreign currency reserves. As the central bank, RBI oversees payment systems, issues currency, and influences the money supply through various monetary policy tools.
The Reserve Bank of India (RBI) is India's central bank established in 1935. It regulates the entire banking system in India and controls monetary policy. RBI aims to maintain price stability and adequate credit/foreign exchange systems. It oversees payment systems, issues currency, acts as a banker to the government and commercial banks, regulates interest rates, and works to expand financial inclusion through developmental functions. RBI is governed by a Central Board of Directors and headed by a Governor.
The Reserve Bank of India was established in 1935 and nationalized in 1949. It serves as India's central bank and is governed by a board of directors. The RBI regulates banking, manages currency and foreign exchange, acts as the government and bankers' bank, controls credit and monetary policy, and oversees banking supervision and financial stability in India.
The documents discuss the history of banking in India. They describe how the three Presidency Banks were established in the 19th century and later amalgamated to form the Imperial Bank of India in 1921. The Imperial Bank performed some central banking functions until the Reserve Bank of India was established in 1935. The RBI took over as the central bank and continues to regulate monetary policy and the banking system in India.
Reserve Bank of india and customer & banker relationshipNikhil kumar Tyagi
The document discusses the Reserve Bank of India (RBI), which is India's central bank. It was established in 1935 under the provisions of the RBI Act 1934. The RBI regulates the country's banking system and monetary policy. It acts as a bank for the government and for commercial banks. It also issues currency, regulates foreign exchange markets, and oversees payment systems. The RBI is headed by a governor and has regional offices across India. It uses various tools to regulate the money supply and credit in India, with the objectives of maintaining price stability and adequate credit availability.
The document provides an overview of the Reserve Bank of India (RBI), which serves as India's central bank. It was established in 1935 and nationalized in 1949. The RBI regulates monetary policy, manages currency and credit systems, acts as a bank for the government and commercial banks, and oversees economic development goals. It carries out traditional central banking functions like currency issuance as well as promotional and supervisory roles. The RBI is governed by a central board and has a headquarters in Mumbai.
The documents discuss the history of banking in India. They describe how the three Presidency Banks were established in the 19th century and later amalgamated to form the Imperial Bank of India in 1921. The Imperial Bank performed some central banking functions until the Reserve Bank of India was established in 1935. The RBI took over as the central bank and continues to regulate monetary policy and the banking system in India.
The Reserve Bank of India (RBI) was established in 1935 as India's central bank. It regulates monetary policy and the country's banking system. Some key roles of RBI include issuing currency, managing foreign exchange, acting as a banker to the government and banks, and regulating and supervising financial institutions. Other important financial institutions in India include NABARD, IDBI, IFCI, EXIM Bank, SIDBI, LIC, and SEBI, which provide services like agriculture/rural financing, industrial financing, export/import facilitation, insurance, and capital market regulation.
This presentation has two parts RBI & Monetary Policy.
It covers in detail the RBI, its history, preamble, organization structure, objectives, its functions in detail, its subsidiaries and all its publications with their links.
In the second part it covers Monetary Policy from Indian perspective. It starts with definition, Policy process followed in India, Goals, Framework. It covers the instruments of Monetary Policy in detail. It covers the future framework envisaged by RBI. In the last leg it covers the Contractionary & Expansionary monetary policy with their execution challenges.
The Reserve Bank of India (RBI) is the central bank of India. It was established in 1935 and nationalized in 1949. RBI has several key functions including being the sole issuer of banknotes, acting as the government's banker and adviser, regulating commercial banks, controlling the country's foreign exchange and monetary policy, and promoting financial sector development. RBI oversees India's banking and financial system through supervisory and developmental roles.
The Reserve Bank of India (RBI) is the central bank of India established in 1935. Its headquarters is in Mumbai and its current governor is Dr. Raghuram Rajan. RBI regulates banking in India and controls the country's money supply and inflation. It issues currency, acts as a banker to the government and commercial banks, and works to promote banking sector growth and development through various institutions. RBI oversees functions like licensing banks, approving branch expansion, inspecting banks, and managing the country's foreign exchange reserves.
The Reserve Bank of India is the central bank of India and occupies a pivotal position in the country's money market. It was established in 1935 and nationalized in 1949, with responsibilities including acting as a bank of issue, banker to the government, and controller of credit in the economy to maintain monetary stability. The RBI is administered by a central board of directors and is divided internally into departments and externally into regional offices.
The document summarizes the developmental roles of the Reserve Bank of India (RBI) in the banking and non-banking sectors. It discusses how RBI promotes savings, ensures adequate credit flows to neglected sectors, and improves fund allocation to underdeveloped regions. It also outlines how RBI aids the development of the financial system through institutions that cater to diverse economic sectors. RBI provides special attention to agriculture credit and industrial finance. It also regulates and supervises banking and non-banking institutions and controls banks using various instruments.
The Reserve Bank of India (RBI) is the central bank of India and was established in 1935. It regulates the entire banking system and monetary policy in India with the objectives of maintaining price stability and adequate credit. RBI acts as a banker, debt manager, and financial advisor to the government, regulates foreign exchange and payment systems, and works to promote the development of the Indian economy through various institutions and policies.
The Reserve Bank of India is the central bank of India established in 1935. It is headquartered in Mumbai and governs monetary policy and regulates banking. Key functions include issuing currency, acting as banker to the government and banks, managing foreign exchange reserves, and regulating the banking system through powers like licensing banks and inspecting them. It aims to maintain price stability and ensure adequate credit flow through tools like repo and reverse repo rates, cash reserve ratios, and open market operations.
The Reserve Bank of India (RBI) is India's central bank, established in 1935. It has several key functions:
1) As a monetary authority, it implements monetary policy to maintain price stability and support economic growth.
2) It regulates banking and the financial system, oversees payment systems, and acts as a lender of last resort to banks.
3) RBI manages foreign exchange reserves, regulates forex markets and the rupee's value relative to other currencies.
4) Beyond its monetary and regulatory roles, RBI works to promote access to affordable financial services, literacy and national development objectives.
The Reserve Bank of India is the central bank of India established in 1935. It regulates banking, manages currency and monetary policy in India. It acts as a bank for the government and regulates commercial banks. It issues currency, manages foreign exchange reserves, implements monetary policy tools like repo rate, CRR, and SLR to regulate inflation and control money supply. It also oversees functions like licensing banks, inspecting banks, and managing clearing houses.
The Reserve Bank of India is the central bank of India established in 1935. It regulates the banking system and monetary policy of India with the goal of price stability. It has key functions such as issuing currency, acting as banker to the government and banks, managing foreign exchange reserves, and regulating money supply through various policy tools like repo rate, reverse repo rate, cash reserve ratio, and statutory liquidity ratio. It aims to promote an orderly development of the credit system and maintain economic stability.
The document discusses the history and development of insurance in India. Some key points:
- Insurance originated around 4,500 years ago in Babylonia and the first modern insurance company was established in London in 1688.
- Life insurance came to India in 1818 through British companies but the first Indian life insurer was established in 1870.
- Post-independence, the life insurance sector was nationalized in 1956 with the formation of LIC. General insurance was nationalized in 1972.
- Reforms began in 1993 and the insurance sector was opened to private players in 2000 with the establishment of the regulatory body IRDA.
- IRDA regulates and promotes the insurance industry in India and specifies
The document discusses various components of financial markets including money markets, capital markets, and foreign exchange markets. It provides details on different segments of the money market such as call money, treasury bills, term money, certificate of deposit markets, commercial paper markets, and commercial bill markets. It also describes key components of the capital market such as industrial securities markets, government securities markets, and long-term loans markets including term loans, mortgages, and financial guarantees.
Cooperative banks were established in India in the early 1900s to provide agricultural credit to rural areas where it was inadequate. They aimed to substitute exploitative money lenders and integrate organized and unorganized credit. Cooperative banks continue operating in rural and agricultural financing alongside other institutions like commercial banks and RRBs. They are organized based on cooperation principles and operate on a no-profit basis. While weaker than commercial banks, the government has undertaken various initiatives to strengthen cooperative banks through organizations like NABARD.
The Narasimham-I Committee was formed in 1991 to study and recommend improvements to India's financial system. It found that the banking sector was dominated by public sector banks and suffered from low profitability and asset quality issues. This prompted economic reforms and the formation of the Narasimham Committee to reform the banking sector. The Committee submitted its report in 1991 recommending widespread banking sector reforms. A second Narasimham Committee was formed in 1998 to further strengthen financial institutions in India.
The document summarizes the history and development of the Unit Trust of India (UTI) mutual fund and the Indian mutual fund industry overall. It discusses how UTI was established in 1964 as the first mutual fund in India and details its operations and objectives. It then outlines the phases of growth of the overall Indian mutual fund industry, from the entry of public sector funds in 1987, private sector funds in 1993, and increased regulation by SEBI in the late 1990s and 2000s, leading to rapid industry expansion and consolidation.
The Securities and Exchange Board of India (SEBI) was established in 1992 as the regulator of the securities market in India. SEBI's objectives include protecting investors, regulating stock exchanges and securities markets, and promoting their development. SEBI has regulatory and developmental functions like registering and regulating intermediaries such as stock brokers, regulating insider trading, and promoting investor education. It oversees stock exchanges, mutual funds, and other market participants and has powers to license, inspect, and enforce compliance with securities laws in India.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
2. “… 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."
3. Established onApril 1, 1935 with share capital of Five
Crores on recommendation of Hilton Young Commission
1926.
RBI was Nationalised inYear1949.
Central Officewas initially established in Calcutta and
moved to Mumbai in 1937
4. • It is the central bank of the country and it is the
centre of the Indian financial and monetary
system.
• As the apex institution, it has been guiding,
monitoring, regulating, controlling and
promoting the destiny of the Indian Financial
System since its inception.
• It is the oldest among the central banks in the
developing countries but it is quit young
compared with such central banks as the bank of
England, and the Federal Reserve Board of the
US.
5. • It is started functioning from April 1, 1935 on the
terms of the Reserve Bank of India Act, 1934.
• The bank is managed by a Central Board of
Directors, Four Local Boards of Directors and a
committee of the central Board of Directors.
• The functions of the Local Boards are to advise
the central Board on matters referred to them;
they are also required to perform duties as are
delegated to them.
6. • The final control of the Bank vests in the Central
Board which comprises the
• Governor
• Four Deputy Governors
• And 15 Directors nominated by Central
Government.
• The internal organizational set-up of the Bank has
been modified and expanded from time to time in
order to cope with the increasing volume and
range of the Bank’s activities.
7. •In order to perform its various functions, the
bank has been divided and sub-divided into a
large number of departments.
•A part from banking and issue departments,
there are at present 20 departments and 3
training establishments at the central office of
the bank.
8. Head office in Mumbai.
24 Regional offices,
most of them in
State Capital.
10. MAIN FUNCTIONS OF RBI
• To maintain monetary stability so that the
business and economic life can deliver
welfare gains of a properly functioning mixed
economy.
• To maintain stable payments system so that
financial transactions can be safely and
efficiently executed.
11. • To maintain financial stability and ensure sound
financial institutions so that monetary stability
can be safely pursued and economic units can
conduct their business with confidence.
• To promote the development of financial
infrastructure of markets and systems, and to
enable it to operate efficiently i.e., to play a
leading role in developing a sound financial
system so that it can discharge its regulatory
function efficiently.
12. • To ensure that credit allocation by the financial
system broadly reflects the national economic
priorities and societal (public) concerns.
• To regulate the overall volume of money and
credit in the economy with a view to ensure a
reasonable degree of price stability.
13. ROLES OF RBI
• Bank of Issue
• Banker of Government
• Bankers’ Bank and Lender of the Last Resort
• Controller of Credit
• Custodian of Foreign Reserves
• Supervisory Functions
• Promotional Functions
14. 1. Bank of Issue (Under Sec 22)
• The RBI has, since its inception, the sole right or
authority or monopoly of issuing currency notes other than
one rupee notes and coins of smaller denominations.
• The issue of currency notes is one of its basic functions.
•Although one rupee coins and notes, and coins of smaller
denominations are issued by the Government of India, they
are put into circulation only through the RBI.
15. At present, the Bank issues notes in the following
denominations: Rs. 5, 10, 20, 50, 100, 500 and 2,000.
The responsibility of the banks is not only to put currency
into or withdraw it from circulation but also exchange notes
and coins of one denomination into those of other
denominations as demanded by the public.
All affairs of the Bank relating to note issue are conducted
through its Issue Department.
16. In order to discharge its currency functions, the
Bank has 15 full-fledged issue offices and two
sub-offices, and 4127 currency chests in which
the stock of new and re-issuable notes, and
rupee coins are stored.
of these, 17 chests were with the RBI, 2877 with the
SBI and associate banks, 791 with nationalised banks,
423 with treasuries and 19 with private sector banks.
17. 2. Banker to Government
• RBI is banker, agent and advisor of Central Government
and all State Government in India.
• RBI helps the Government to float new loans and to
manage public debt.
• RBI makes loans and advances to the States and local
authorities.
18. The banks receives government deposits free of
interest, and it is not entitled to any remuneration for the
conduct of the ordinary banking business of the
Government.
The deficit or surplus in the Central Government
account with the RBI is managed by the creation and
cancellation of treasury bills (known as ad-hoc treasury
bills)
19. Ways and Means Advances: As a banker to
the government, the Bank can make “ways and means
advances” (i.e., temporary advances made in order to
bridge the temporary gap between receipts and
payments) to both central and state governments.
The Maximum maturity period of these advances is
three months.
20. Overdrafts: apart from the ways and means
advances, the state governments have made heavy use
of overdrafts from the RBI. An overdraft refers to drawals
of credit by the State Governments from the RBI in
excess of the Credit (ways and means advances) limits
granted by the RBI.
At present, ODs up to and inclusive of the seventh day
are charged at the Bank rate and from the eighth day
onwards at 3% above the bank rate.
21. The issue, management and administration of
the public (Central and State Governments) debt
are among the major functions of the RBI as the
banker to the government. The Bank charges a
commission from the governments for rendering
this service.
22. 3. Banker’s Bank & Lender of Last Resort
• RBI maintains banking accounts of all schedule
banks.
•The bank controls the volume of reserves of commercial
banks and there by determines the deposits/credit
creating ability of the banks.
•The banks hold a part or all of their reserves with the RBI.
•Similarly, in times of need, the banks borrow funds from
the RBI. It is therefore, called the bank of last resort or the
lender of last resort..
23. The RBI is the ultimate
source of money and
credit in India
24. In keeping with the recommendations of Narasihmam
Committee (1991) , the RBI function of bank supervision
was separated from its traditional central banking function
by the creation of a separate Department of Supervision
(DOS) from 22 November, 1993.
Due to securities scams the Board of Financial Supervision
(BFS) was set up on 16th November, 1994.
25. The BFS has a full-time vice-chairman and six
other members, the RBI Governor is its chairman.
It has power to supervise and inspect banks,
financial institutions, and NBFCs.
There are a 5 member Advisory Council to render
advice to it. The Dept. of Supervision (DOS)
assists the BFS.
26. 4 Controller of Credit :-
• RBI holds the cash reserves of all schedulebanks.
• It holds credit operations of banks throughquantities
• RBI has power to ask bank or whole banking system
not to lend particular group or person.
• Every bank have to get license from RBI for banking
operation.RBI can also cancel this license.
• Every bank gives weekly returnshowing assets and
liabilities in details .
27. 5. Custodian of Foreign Reserves :-
• RBI responsible to maintain official rate of exchange
as according terms of I.M.F.
• RBI reserves the international currency.
• RBI observes relationship of Indian Currency with
other International currency.
28. 6. Supervising Authority:
• The RBI has vast power to supervise and control commercial and
co-operative banks with a view to developing an adequate and
sound banking system in the country. It has , in this filed, the
following Powers:
•To issue licenses for the establishment of new banks
•To issue licenses for the setting up of bank branches.
•To prescribe minimum requirements regarding paid-up capital and
reserves, transfer to reserve fund, and maintenance of cash reserves
and other liquid assets.
29. Powers:
To control appoint, re-appointment, termination of
appointment of the Chairman and Chief Executive
officers of Private Sector Banks and
To approve or force amalgamations.
30. Powers:
To inspect the working of banks in India as well as abroad in
respect of their organizational set-up, branch expansion.
Mobilization of deposits, investments and credit portfolio
management, credit appraisal, region-wise performance, profit
planning, manpower planning and training .
To conduct ad hoc investigations, from time to time, into
complaints, irregularities, and frauds in improper investments and
injudicious (careless) advances.
31. 7. Promotional Functions
• RBI ask banks and financing agencies to promote rural
and semi-urban areas by financing (funding ).
• RBI setup directly or indirectly some institutions like :
• Deposit Insurance Corporation ( 1962 )
• Industrial Development Bank ( 1964 )
• Unit Trust of India ( 1964 )
• Industrial Reconstruction Corp. of India ( 1972 )
• Agricultural Refinance Corporation ( 1963 )
• RBI promotes villagers for saving and route this money
as short term credit to agriculture.
32. MONETARY POLICY
• Monetary policy is that part of economic
policy in which central bank controls the cost
and supply of money and credit by applying
different techniques. It is also main function of
central bank.
33. Many Techniques of Monetary
Control – some old and well
known, others specially devised
and adapted have been used in
India. Among these are:
34. Open Market Operations (OMO)
Bank Rate
Discretionary control of refinance and
rediscounting
Direct Regulation of Interest Rates on
Commercial Banks’ Deposits and Loans
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
35. Direct Credit Allocation and Credit Rationing
Selective Credit Controls (SCC)
Credit Authorisation Scheme (CAS)
Fixation of Inventory and Credit Norms
Credit Planning
Liquidity Adjustment Facility (LAF)
36. This Technique is used an actively in the US, UK
and many other countries also. Through the Open
Market Sales and Purchases of Government
Securities, the RBI can affect the reserves position
of banks, yields on government securities and
volume and cost of bank credit. However, it is the
technique least used by the Bank, though it has
wide powers to use it.
Open Market Operations (OMO)
37. There is no restriction on the quantity of maturity
of government securities which it can buy or sell or
hold.
Technically, the Bank can conduct OMOs in
treasury bills, State Government Securities, and
Central Government Securities, but in practice,
they are conducted only in Central Government
securities of all maturities.
Open Market Operations (OMO)
38. It purchases and sells government securities from
time to time out of the surplus funds of the IDBI,
EXIM bank and NABARD.
Open Market Operations (OMO)
39. GOALS AND OBJECTIVES: the multiple objectives
include:
To make Bank rate policy more effective
To maintain stability in government securities
market
To support government borrowing programe
To smoothen the seasonal flow of funds in the
bank credit market.
Open Market Operations (OMO)
40. Bank Rate:
It is the basic cost of refinance and
rediscounting facilities. The RBI provides
financial accommodation in the form of
rediscounting of bills of exchange and
promissory notes, loans and advances to
scheduled commercial and co-operative banks,
SFCs, IDBI, IFC, EXIM Bank and other
approved financial institutions for financing
bonafide internal and external commercial,
trade and production transactions.
41. Cash Reserve Ratio:
Which refers to the Cash which banks have to
maintain with the RBI as a certain % of their demand
and time liabilities.
Till 1962, a separate CRR was fixed in respect of
Demand Liabilities (5%) and Time Liabilities (2%).
42. • The Bank had powers to vary these ratios
up to a maximum of 20% and 8%
respectively. Subject to these ceilings, the
RBI could ask banks to maintain with itself
additional reserves as a specified % of
additional demand and time liabilities after
a certain specified date.
43. Cash Reserve Ratio:
In 1962, the separate CRRs were merged and one
CRR came to be fixed as a certain % of both demand
and time liabilities with the maximum of 15% and
minimum of 3%.
The RBI has powers to impose penal interest rates
on banks in respect of their shortfall in the prescribed
CRR. The penal interest rate is normally 3% above
the Bank Rate for the first week of default and 5% for
the subsequent weeks till the default is made good.
44. Statutory Liquidity Ratio: (SLR)
The SLR is the ratio of cash in hand (exclusive
of cash balances maintained by banks to meet
the required CRR, but not the excess reserves);
balances in current account with the SBI, its
subsidiaries, other nationalised banks and the
RBI, Gold and approved securities i.e., central
and state government securities, securities of
local bodies and government-guaranteed
securities to the Demand and Time Liabilities
(DTL) of banks.
45. Statutory Liquidity Ratio: (SLR)
In addition to the CRR, the RBI has made
active use of another ratio namely the SLR,
while the CRR enables the Bank to impose
primary reserve requirements, the SLR enables
it to impose secondary and supplementary
reserve requirements, on the banking system.
46. Statutory Liquidity Ratio: (SLR)
There are three objectives behind the use of
SLR:
a. To restrict expansion of bank credit.
b. To augment (increase) banks’ investment
in government securities and
c. To ensure Solvency of banks.
48. Statutory Liquidity Ratio: (SLR)
The RBI is empowered to increase the SLR for
scheduled commercial banks up to 40%.
An increase in the SLR does not restrain total
expenditure in the economy, it may restrict only
the private sector expenditure while helping to
increase the government expenditure.
Therefore, the SLR is not a technique of
monetary control; it only distributes bank
resources in favour of the government sector.
49. QUANTITATIVE - TOOLS
• Bank Rate- The rate at which RBI extends
credit to commercial banks.
• CRR – The % of bank’s deposits which they
must keep as cash with RBI.
• SLR – A commercial Bank has to keep a
portion of total deposits with itself in liquid
assets.
50. Direct Credit Allocation and Credit
Rationing:
With the passage of time, the distribution or
allocation of credit among different sectors,
borrowers, and users was increasingly achieved
through the fixation of specific and direct
quantitative credit ceilings or credit targets.
This technique was first introduced in
November, 1973.
51. Direct Credit Allocation and Credit
Rationing:
The RBI has been stipulating certain targets for
credit distribution to various sectors. For
example, in November 1974, banks were
advised that their priority sector lending should
reach a level of not less than one-third of their
outstanding credit by March 1979.
Subsequently, on October 1980, the banks
were instructed that their:
52. Direct Credit Allocation and Credit
Rationing:
A. Priority sector advances should constitute 40% of
aggregate bank advance by 1985
B. Advances to the agricultural sector should be 40%
of the priority sector advances, or at least 16% of
total bank advances by 1985.
C. Direct advance to weaker sections in the
agricultural sector should be at least 50% of total
direct lending to agriculture by 1983.
D. Advances to rural artisans, village craftsmen and
cottage industries should be 12.5% of the total
advances to small-scale industries by 1985.
53. Direct Credit Allocation and Credit
Rationing:
•In order to achieve regional or geographical
balance in respect of Credit Disbursal, the RBI
has been asking banks to achieve a certain
prescribed credit-deposit ratio in respect of their
rural and semi-urban branches separately.
•Normally, they have been asked to achieve a
credit-deposit ratio of 60% in this context.
54. Selective Credit Controls:(SCC)
This is the most actively used technique in
India. The seasonal nature of the Indian
economy and the nature of inflation therein,
have SCCs particularly useful in out context,
SCCs seek to change the composition of Credit;
they are used to reduce the supply of Credit in
certain directions and to encourage it in desired
directions.
55. Selective Credit Controls:(SCC)
They have been used particularly to prevent
speculative hoarding of sensitive commodities
such as paddy, rice, wheat, pulses, oil-seeds,
oils and vanaspati, cotton sugar and so on.
They are now applied both to commercial and
co-operative banks. Till, 1967, they were
confined to commercial banks only.
56. Credit Authorization Scheme:
This technique was introduced in November, 1965
with a view to regulate the volume and terms of credit
supplied to large borrowers.
It had the following objectives:
a. To regulate credit to control inflation.
b. To enforce financial discipline on large borrowers do
not monopolies scarce bank credit and
c. To ensure that credit is supplied in accordance with
the needs of borrowers and the goals of planning.
57. Credit Authorization Scheme:
As per this scheme, if the fresh working capital limit
to be sanctioned to any single party by any one bank
or the entire banking system exceeded a stipulated
level, the bank would require prior authorization of the
RBI for sanctioning such a loan.
This stipulated level or cut-off point was fixed at One
Crore in the beginning; it was subsequently increased
to Two Crores in November 1975 and so on after 1983
it is increased to Six Crores.
58. Credit Authorisation Scheme:
The Scheme was in operation for more than 20
years, but in the1988, the RBI decided to withdraw the
scheme after a review of its working.
In its place, a system of post-sanction scrutiny,
namely Credit Monitory Arrangement (CMA) was
introduced.
As per this, credit proposals for Five Crores and
above in the case of working capital, and Two Crores
and above in the case of term loans, had to submitted
to the RBI for post-sanction scrutiny.
59. The Reserve Bank of India, in its monetary policy meet
decided to keep the key policy rates unchanged after
two emergency rate cuts amid the COVID-19
disruptions and its ensuing economic fallout.
Latest Policy rates
CRR Rate 3
SLR Rate 18
Repo Rate 4
Reverse Repo Rate 3.35
60. RBI Monetary Policy Highlights:
MPC has decided that the repo rate will remain
unchanged amid the possibility of a high inflation.
Shaktikanta Das announced Rs 10,000 crore at repo
rate to NABARD and NHB to alleviate the liquidity
crisis.
Editor's Notes
In order to perform its various functions, the bank has been divided and sub-divided into a large number of departments.
A part from banking and issue departments, there are at present 20 departments and 3 training establishments at the central office of the bank.
The RBI is the ultimate source of money and credit in India
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,
Bank Rate: The RBI provides financial accommodatiion in the form of rediscounting of bills of exchange and promissory notes ,