Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co Operative Banks, Regional Rural
Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development
Banking.
Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co Operative Banks, Regional Rural
Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development
Banking.
Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co Operative Banks, Regional Rural
Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development
Banking.
This document provides an overview of the evolution and structure of the Indian banking system. It discusses the key developments since independence, including the establishment of the Reserve Bank of India in 1934 and the current two-tier structure consisting of scheduled and non-scheduled banks. The roles and functions of RBI as the central bank and banking regulator are described. The document also summarizes the major recommendations of the Narasimham Committee reports on banking sector reforms to modernize and strengthen the Indian financial system.
The Reserve Bank of India (RBI) has functioned as India's central bank since 1935. It was originally a private institution but became state-owned in 1949. As central bank, the RBI regulates the country's monetary policy and financial system, manages foreign exchange, issues currency, promotes agricultural and rural development, acts as banker to the government and banks, and works to achieve price stability and economic growth.
The document summarizes the banking structure in India. It discusses the central bank (Reserve Bank of India), the types of scheduled commercial banks (public sector, private sector, foreign), and other financial institutions. The main types of banking in India are walk-in banking, drive-thru banking, ATM banking, online/internet banking, and mobile banking. The Reserve Bank of India regulates and oversees the entire banking system.
Role of RBI in Indian Banking System - ITT PresentationKunal Motwani
Thank you for the presentation. I have learned about the important role played by the Reserve Bank of India in regulating and developing the Indian banking system.
This document discusses commercial banks and their types and functions. It defines commercial banks as financial institutions that grant loans, accept deposits, and offer other financial services. It identifies three types of commercial banks: public sector banks which are nationalized by governments, private sector banks which are owned by private businesses, and foreign banks which are headquartered in foreign countries. It then discusses the key functions of commercial banks, including accelerating capital formation by mobilizing savings, providing finance and credit to trade and industry, developing entrepreneurship, promoting balanced regional development, and helping consumers.
The document provides an introduction to the Indian banking system. It defines what a bank is, outlines key terms like deposits, loans, interest rates and required reserve ratios. It describes the major constituents of the Indian banking system, including the Reserve Bank of India, State Bank of India, commercial banks, regional rural banks, cooperative banks and development banks. It also discusses the roles banks play in mobilizing savings, credit creation, export promotion, and economic development overall.
Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co Operative Banks, Regional Rural
Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development
Banking.
Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co Operative Banks, Regional Rural
Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development
Banking.
This document provides an overview of the evolution and structure of the Indian banking system. It discusses the key developments since independence, including the establishment of the Reserve Bank of India in 1934 and the current two-tier structure consisting of scheduled and non-scheduled banks. The roles and functions of RBI as the central bank and banking regulator are described. The document also summarizes the major recommendations of the Narasimham Committee reports on banking sector reforms to modernize and strengthen the Indian financial system.
The Reserve Bank of India (RBI) has functioned as India's central bank since 1935. It was originally a private institution but became state-owned in 1949. As central bank, the RBI regulates the country's monetary policy and financial system, manages foreign exchange, issues currency, promotes agricultural and rural development, acts as banker to the government and banks, and works to achieve price stability and economic growth.
The document summarizes the banking structure in India. It discusses the central bank (Reserve Bank of India), the types of scheduled commercial banks (public sector, private sector, foreign), and other financial institutions. The main types of banking in India are walk-in banking, drive-thru banking, ATM banking, online/internet banking, and mobile banking. The Reserve Bank of India regulates and oversees the entire banking system.
Role of RBI in Indian Banking System - ITT PresentationKunal Motwani
Thank you for the presentation. I have learned about the important role played by the Reserve Bank of India in regulating and developing the Indian banking system.
This document discusses commercial banks and their types and functions. It defines commercial banks as financial institutions that grant loans, accept deposits, and offer other financial services. It identifies three types of commercial banks: public sector banks which are nationalized by governments, private sector banks which are owned by private businesses, and foreign banks which are headquartered in foreign countries. It then discusses the key functions of commercial banks, including accelerating capital formation by mobilizing savings, providing finance and credit to trade and industry, developing entrepreneurship, promoting balanced regional development, and helping consumers.
The document provides an introduction to the Indian banking system. It defines what a bank is, outlines key terms like deposits, loans, interest rates and required reserve ratios. It describes the major constituents of the Indian banking system, including the Reserve Bank of India, State Bank of India, commercial banks, regional rural banks, cooperative banks and development banks. It also discusses the roles banks play in mobilizing savings, credit creation, export promotion, and economic development overall.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
The Board of Financial Supervision (BFS) was constituted in 1994 as a committee of the Reserve Bank of India's Central Board to oversee financial sector supervision. The BFS guides the RBI's regulatory and supervisory functions, including monitoring commercial banks, financial institutions, and non-banking finance companies. It aims to ensure the solvency, liquidity, and sound operations of these financial institutions. The BFS meets monthly and is chaired by the RBI Governor, with Deputy Governors and Central Board members as members. It oversees key departments handling supervision and provides directions on regulatory and supervisory issues.
The money market can be defined as a market for short-term funds with maturities ranging from overnight to one year. It plays a central role in monetary policy transmission and providing a link between monetary policy, financial markets, and the real economy. The Indian money market has both an organized and unorganized structure, with the organized market consisting of entities like the RBI and scheduled commercial banks, and the unorganized market comprising informal lenders. Key components of the Indian money market include markets for products like treasury bills, commercial paper, certificates of deposit, and various inter-bank markets. The RBI uses tools like open market operations, cash reserve ratio, and repo/reverse repo rates to regulate the money market and implement monetary
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 document summarizes the key roles and functions of the Reserve Bank of India (RBI) according to the Banking Regulation Act of 1949. It discusses how RBI was established in 1935 and nationalized in 1949. It then outlines RBI's main functions including acting as the central bank and monetary authority of India, regulating commercial banks, managing currency, acting as both lender and banker to the government, and overseeing foreign exchange reserves. The document also summarizes some of the major provisions and sections of the Banking Regulation Act related to RBI's regulatory powers.
The document discusses various banking terms:
1. Repo rate is the rate at which banks borrow from the RBI. A reduction in repo rate makes borrowing cheaper for banks.
2. Reverse repo rate is the rate at which RBI borrows from banks, used when there is excess liquidity.
3. CRR is the amount of funds banks must keep in reserves with RBI. Increasing CRR reduces funds available with banks.
4. SLR is the minimum amount of liquid assets like government bonds banks must hold, set by RBI to control credit growth.
The document provides an overview of the Indian banking industry, including its historical development, current state, and future outlook. It discusses the nationalization of banks in 1969 and 1980, the introduction of private sector banks in 1993, and the liberalization of the banking sector in the 1990s. It also summarizes the aggregate performance of the industry in terms of deposits, credit growth, and earnings. Looking ahead, it forecasts continued consolidation in the banking sector and a greater focus on retail banking and technology.
Banking Structure in India:
This presentation helps us to understand the basics of banking in India, its initiation, role and growth over the period of time.
Role of RBI in Control of Credit - Economics Project Class 12 (2019-20 )ShivamSingh1247
This is Class 12 Economics Project as per the CBSE Guidelines ( 2019-20)
Download This Project From Here : https://drive.google.com/file/d/1EJZakkGzp5ubvAIYpShMQRB26LVsXOXx/view?usp=drivesdk
Topic : Role of RBI in Control of Credit
➡️ Reserve Bank of India - Histroy
➡️ Reserve Bank of India - Introduction
➡️ Structure of Reserve Bank of India
➡️ Functions of Reserve Bank of India
➡️ Demonetisation
➡️ Methods of Credit Control
➡️ Need of Credit Control
➡️ Limitations of Credit Control
➡️ Current Rates ( As on 14 Dec 2019 )
➡️ OBJECTIVE
➡️ CONCLUSION
➡️ BIBILIOGRAPHY
Introduction to Indian Banking-B.V.RaghunandanSVS College
The document summarizes modern banking in India. It discusses the various types of banks in India including commercial banks like public and private sector banks, development banks, regional rural banks, cooperative banks, and specialized banks like NABARD, land development banks, and foreign exchange banks. It provides details on the establishment and functions of key banks like the Reserve Bank of India, commercial banks, regional rural banks, and NABARD.
Chapter 4 schemes of banking developmentNayan Vaghela
schemes of banking development, Lead banking scheme, Mutual funds, deposit insurance scheme, modernization of banking industry, non banking financial companies
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 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 provides an overview of key concepts related to the Indian economy including quantitative and qualitative monetary policy tools used by the RBI, priority sector lending requirements, types of banks and financial institutions, measures of inflation, components of money supply, and concepts in capital markets. It defines terms like CRR, SLR, repo rate, reverse repo rate, MSF, PSL, NBFCs, WPI, CPI, IIP, and different levels of money supply. It also summarizes the roles of key institutions like RBI, SEBI, NABARD, and different types of banks and their regulatory requirements.
Concepts in Banking and Accounting of transactions: Accounting in banks, Electronic Banking, RTGS, ATM, MICR,
OCR, OMR, and DATANET, Petty Cash, Electronic Clearing Service (ECS), National Electronic Funds Transfer (NEFT) System,
Real Time Gross Settlement (RTGS) System, IMPS
The Reserve Bank of India is India's central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
1. A bank is a licensed financial institution that accepts deposits and lends money. The first bank in India was the Bank of Hindustan in 1770. Banks in India are categorized as scheduled commercial banks, non-scheduled banks, and non-commercial banks like NABARD.
2. The State Bank of India was established in 1955 by merging several state-associated banks. In 1969 and 1980, the government nationalized major commercial banks to promote development. Currently there are 19 nationalized banks and public sector banks make up the majority of banks in India.
3. Specialized financial institutions also operate in India, such as SIDBI which promotes MSMEs, NHB for housing, and Exim
This document provides an overview of various topics related to banking awareness, including:
1. It lists the major financial sector regulators in India such as RBI, IRDA, SEBI, NABARD, and PFRDA and describes their roles.
2. It discusses the Basel norms (Basel I, II, and III) which provide guidelines for bank capital adequacy and risk management.
3. It defines key stock market indexes around the world such as Sensex in India and describes how they are used to measure the performance of economies and market segments.
The document serves as a guide covering important concepts for banking exams and interviews. It covers a wide range of topics in a structured manner
Principles & Practices of Banking module 1ARUNKUMAR7358
The document provides an overview of the banking system in India. It discusses the historical aspects of banking in India dating back to the 18th century. It then covers various topics related to the modern banking system such as the role and functions of the Reserve Bank of India, types of banks including public sector and regional banks, commercial banking, financial markets, debt and equity markets, and recent developments in the Indian financial system.
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.
RBI is India's central bank that regulates banking, manages currency and credit, and acts as a bank for the central and state governments. It was established in 1935 based on recommendations of the Hilton Young Commission. Key functions include monetary policy management, banking regulation and supervision, managing foreign exchange reserves, acting as a banker and lender of last resort to banks, issuing currency, and advising the government on financial matters. It also plays a developmental role in expanding access to affordable financial services.
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.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
The Board of Financial Supervision (BFS) was constituted in 1994 as a committee of the Reserve Bank of India's Central Board to oversee financial sector supervision. The BFS guides the RBI's regulatory and supervisory functions, including monitoring commercial banks, financial institutions, and non-banking finance companies. It aims to ensure the solvency, liquidity, and sound operations of these financial institutions. The BFS meets monthly and is chaired by the RBI Governor, with Deputy Governors and Central Board members as members. It oversees key departments handling supervision and provides directions on regulatory and supervisory issues.
The money market can be defined as a market for short-term funds with maturities ranging from overnight to one year. It plays a central role in monetary policy transmission and providing a link between monetary policy, financial markets, and the real economy. The Indian money market has both an organized and unorganized structure, with the organized market consisting of entities like the RBI and scheduled commercial banks, and the unorganized market comprising informal lenders. Key components of the Indian money market include markets for products like treasury bills, commercial paper, certificates of deposit, and various inter-bank markets. The RBI uses tools like open market operations, cash reserve ratio, and repo/reverse repo rates to regulate the money market and implement monetary
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 document summarizes the key roles and functions of the Reserve Bank of India (RBI) according to the Banking Regulation Act of 1949. It discusses how RBI was established in 1935 and nationalized in 1949. It then outlines RBI's main functions including acting as the central bank and monetary authority of India, regulating commercial banks, managing currency, acting as both lender and banker to the government, and overseeing foreign exchange reserves. The document also summarizes some of the major provisions and sections of the Banking Regulation Act related to RBI's regulatory powers.
The document discusses various banking terms:
1. Repo rate is the rate at which banks borrow from the RBI. A reduction in repo rate makes borrowing cheaper for banks.
2. Reverse repo rate is the rate at which RBI borrows from banks, used when there is excess liquidity.
3. CRR is the amount of funds banks must keep in reserves with RBI. Increasing CRR reduces funds available with banks.
4. SLR is the minimum amount of liquid assets like government bonds banks must hold, set by RBI to control credit growth.
The document provides an overview of the Indian banking industry, including its historical development, current state, and future outlook. It discusses the nationalization of banks in 1969 and 1980, the introduction of private sector banks in 1993, and the liberalization of the banking sector in the 1990s. It also summarizes the aggregate performance of the industry in terms of deposits, credit growth, and earnings. Looking ahead, it forecasts continued consolidation in the banking sector and a greater focus on retail banking and technology.
Banking Structure in India:
This presentation helps us to understand the basics of banking in India, its initiation, role and growth over the period of time.
Role of RBI in Control of Credit - Economics Project Class 12 (2019-20 )ShivamSingh1247
This is Class 12 Economics Project as per the CBSE Guidelines ( 2019-20)
Download This Project From Here : https://drive.google.com/file/d/1EJZakkGzp5ubvAIYpShMQRB26LVsXOXx/view?usp=drivesdk
Topic : Role of RBI in Control of Credit
➡️ Reserve Bank of India - Histroy
➡️ Reserve Bank of India - Introduction
➡️ Structure of Reserve Bank of India
➡️ Functions of Reserve Bank of India
➡️ Demonetisation
➡️ Methods of Credit Control
➡️ Need of Credit Control
➡️ Limitations of Credit Control
➡️ Current Rates ( As on 14 Dec 2019 )
➡️ OBJECTIVE
➡️ CONCLUSION
➡️ BIBILIOGRAPHY
Introduction to Indian Banking-B.V.RaghunandanSVS College
The document summarizes modern banking in India. It discusses the various types of banks in India including commercial banks like public and private sector banks, development banks, regional rural banks, cooperative banks, and specialized banks like NABARD, land development banks, and foreign exchange banks. It provides details on the establishment and functions of key banks like the Reserve Bank of India, commercial banks, regional rural banks, and NABARD.
Chapter 4 schemes of banking developmentNayan Vaghela
schemes of banking development, Lead banking scheme, Mutual funds, deposit insurance scheme, modernization of banking industry, non banking financial companies
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 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 provides an overview of key concepts related to the Indian economy including quantitative and qualitative monetary policy tools used by the RBI, priority sector lending requirements, types of banks and financial institutions, measures of inflation, components of money supply, and concepts in capital markets. It defines terms like CRR, SLR, repo rate, reverse repo rate, MSF, PSL, NBFCs, WPI, CPI, IIP, and different levels of money supply. It also summarizes the roles of key institutions like RBI, SEBI, NABARD, and different types of banks and their regulatory requirements.
Concepts in Banking and Accounting of transactions: Accounting in banks, Electronic Banking, RTGS, ATM, MICR,
OCR, OMR, and DATANET, Petty Cash, Electronic Clearing Service (ECS), National Electronic Funds Transfer (NEFT) System,
Real Time Gross Settlement (RTGS) System, IMPS
The Reserve Bank of India is India's central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
1. A bank is a licensed financial institution that accepts deposits and lends money. The first bank in India was the Bank of Hindustan in 1770. Banks in India are categorized as scheduled commercial banks, non-scheduled banks, and non-commercial banks like NABARD.
2. The State Bank of India was established in 1955 by merging several state-associated banks. In 1969 and 1980, the government nationalized major commercial banks to promote development. Currently there are 19 nationalized banks and public sector banks make up the majority of banks in India.
3. Specialized financial institutions also operate in India, such as SIDBI which promotes MSMEs, NHB for housing, and Exim
This document provides an overview of various topics related to banking awareness, including:
1. It lists the major financial sector regulators in India such as RBI, IRDA, SEBI, NABARD, and PFRDA and describes their roles.
2. It discusses the Basel norms (Basel I, II, and III) which provide guidelines for bank capital adequacy and risk management.
3. It defines key stock market indexes around the world such as Sensex in India and describes how they are used to measure the performance of economies and market segments.
The document serves as a guide covering important concepts for banking exams and interviews. It covers a wide range of topics in a structured manner
Principles & Practices of Banking module 1ARUNKUMAR7358
The document provides an overview of the banking system in India. It discusses the historical aspects of banking in India dating back to the 18th century. It then covers various topics related to the modern banking system such as the role and functions of the Reserve Bank of India, types of banks including public sector and regional banks, commercial banking, financial markets, debt and equity markets, and recent developments in the Indian financial system.
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.
RBI is India's central bank that regulates banking, manages currency and credit, and acts as a bank for the central and state governments. It was established in 1935 based on recommendations of the Hilton Young Commission. Key functions include monetary policy management, banking regulation and supervision, managing foreign exchange reserves, acting as a banker and lender of last resort to banks, issuing currency, and advising the government on financial matters. It also plays a developmental role in expanding access to affordable financial services.
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.
Thank you for the presentation. We have gained valuable insights into the important role played by the Reserve Bank of India in regulating and developing the Indian banking system.
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 three key points are:
1) The Reserve Bank of India Act 1934 established the Reserve Bank of India and empowered it to regulate banks and maintain financial stability in India.
2) The principal regulatory framework for banks in India involves the Banking Regulation Act 1949, which provides legal guidelines for banks, and the Reserve Bank of India Act 1934, which empowers RBI to supervise banks.
3) Some of RBI's main roles and responsibilities include being the sole issuer of banknotes, acting as banker and lender of last resort to commercial banks, managing currency and monetary policy, and regulating and supervising 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.
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 Reserve Bank of India (RBI) was established in 1935 and nationalized in 1949. It is India's central bank, headquartered in Mumbai. RBI's key functions include formulating monetary policy, regulating banks, managing currency, being the government's banker, and more. Recently, there was tension between RBI and the government over certain regulatory issues, but RBI ultimately transferred over 1.76 trillion rupees to the government per recommendations of an expert committee. RBI plays an important role in India's economic development.
Rbi catalyst in the economic growth in india - hard copyDharmik
The Reserve Bank of India (RBI) plays a catalytic role in India's economic growth through its traditional and developmental functions. As the central bank, RBI regulates money supply and credit through tools like bank rate, cash reserve ratio, and moral suasion. It also promotes growth by developing the agricultural, industrial, and financial sectors through specialized institutions. Recent data shows increasing savings, investment, manufacturing growth, and corporate profits, indicating higher and sustainable economic expansion. However, there are some doubts about the inclusive nature of this growth.
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.
Constitution, Management & Functions OF R.B.ITejinder Bhatti
The Reserve Bank of India was established in 1934 and nationalized in 1948. It is governed by a Central Board of Directors and manages the country's currency, banking system, and credit. As the central bank, it regulates the country's money supply, acts as a bank for the government and commercial banks, manages foreign exchange reserves, acts as the lender of last resort, facilitates clearing and settlement between banks, and controls credit in the economy.
The Reserve Bank of India (RBI) was established in 1935 according to the Reserve Bank of India Act of 1934. It has several important roles, including being the sole issuer of currency notes, the banker's bank (holding reserves for commercial banks and providing clearing and remittance facilities), the banker to the government of India, controlling credit in the economy through various instruments, managing foreign exchange and representing India in the IMF, collecting and publishing various economic data, and promoting development through institutions that support agriculture, industry, and safeguard depositors. The RBI was initially privately owned but is now fully owned by the Government of India.
The document provides information about the roles and functions of the Reserve Bank of India (RBI). It discusses RBI's role as a monetary authority, banker's bank, money regulator, issuer of currency and licenses. It outlines the powers of RBI in controlling money supply through various quantitative measures like cash reserve ratio (CRR), statutory liquidity ratio (SLR), repo rate, and reverse repo rate. Examples are given of how CRR, SLR and repo rate work. Past and recent governors of RBI are also mentioned.
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) is India's central bank and was established in 1935. It controls monetary policy and regulates the banking system. As the central bank, RBI acts as a bank for banks by facilitating inter-bank transactions and maintaining statutory reserves. It also acts as a lender of last resort for banks during financial crises. RBI aims to maintain price stability and manage currency, credit, and foreign exchange to promote balanced economic growth in India.
The Reserve Bank of India (RBI) is the central bank of India, established in 1935. It was initially privately owned but was nationalized in 1949. RBI's key functions include acting as banker to the government and commercial banks, having a monopoly on currency issuance, regulating money supply and credit in the economy, and acting as custodian of foreign exchange reserves to help maintain currency stability. It also acts as lender of last resort to banks and a clearing house for inter-bank settlements. RBI's activities are aimed at regulating monetary policy and the banking system to achieve price stability and support fiscal policy.
The Reserve Bank of India (RBI) is India's central banking institution that governs the country's monetary policy and banking system. As the central bank and monetary authority, the RBI regulates interest rates and money supply to achieve price stability and economic growth. It also acts as a bank to the government and banks, a regulator of the financial sector, and the sole issuer of currency. Key roles of the RBI include managing foreign exchange reserves, acting as a lender of last resort, and facilitating development initiatives in the financial system.
The Reserve Bank of India was established in 1935 according to the Reserve Bank of India Act of 1934. It is headquartered in Mumbai and is fully owned by the Government of India. Urjit Patel is the current governor. The RBI's key functions include formulating monetary policy, regulating banks, managing foreign exchange, acting as a banker and lender of last resort to the government and commercial banks, and issuing currency. It oversees financial supervision through various departments and has regional offices across India.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 and nationalized in 1949. The RBI is responsible for maintaining economic stability and assisting economic growth. It acts as a bank to the government and other commercial banks. Key roles of the RBI include issuing currency, managing foreign exchange reserves, controlling credit supply, and collecting and publishing banking and financial data. The RBI also facilitates business through its policies on currency, development of the financial system, and funds transfer mechanisms.
The document discusses the role and functions of the Reserve Bank of India (RBI) as the central bank of India. It outlines that the RBI regulates the financial sector, acts as a banker to the government and other banks, issues currency, controls money supply and credit, regulates foreign exchange, and works to promote economic development. The RBI fulfills various roles including monetary authority, regulator of the economy, controller of the banking system, and manager of payment systems. It uses tools like interest rates, cash reserve ratios, and open market operations to achieve its goals of maintaining price stability and economic growth.
This document provides a summary of a personal financial planning course. It includes sample questions and answers on topics like tax deductions, wills and trusts, investment vehicles, and financial concepts. Multiple choice, true/false, and fill in the blank questions are given about tax deductions, executor duties, National Pension System eligibility, and interest calculations. Detailed answers explain SMART goals, financial planning elements, and differences between systematic and unsystematic investment risks. Investment vehicles are also classified based on short, medium and long-term holding periods and examples.
1) The document discusses various topics related to personal financial planning including classifying investment avenues, understanding KYC and compound interest calculations, investments that qualify for tax benefits under section 80C, asset allocation, systematic and non-systematic risk, estate planning, and calculating annual investments needed to achieve financial goals considering inflation.
2) It provides examples to calculate future value of investments using compound interest formula, amount earned on Rs. 10,000 invested at 6% interest for 3 years, list of tax saving investments under section 80C, and defines key financial terms like PAN, asset allocation, risks, and estate planning.
3) Questions include calculating annual investment needed to accumulate Rs. 25 lakh in
This document provides an overview of unit-wise questions on the Indian economy that cover various topics. The questions are divided into multiple units that cover areas such as the classification of India as a developing economy, key sectors of the Indian economy and their evolution, economic reforms, poverty and inclusion, infrastructure development challenges, monetary and fiscal policy, the banking sector, sustainability issues, and international economic cooperation. The document contains over 80 questions addressing these various facets of the Indian economy to help assess understanding of its development and policy landscape.
1. Perspective of Indian Economy: Indian Economy as a Developing Economy, Basic Characteristics Overview of Economic Planning, Role of Monetary policy and Fiscal Policy, Budget terminology, Economic Growth, GDP and GDP Trends, Money Supply & Inflation, Inflation trends, RBI – overview of role and functions, Capital Markets – overview of role and functions, Concept of Poverty, Estimates of Poverty, Poverty Line, Economic Reforms and Reduction of Poverty, Concept of Inclusion, Need of inclusive growth, Financial inclusion. Concept of Hard & Soft Infrastructure. Hard Infrastructure - Transport Infrastructure, Energy Infrastructure, Water management infrastructure, Communication Infrastructure, Solid waste management, Earth monitoring and measuring networks. Soft Infrastructure - Governance Infrastructure, Economic infrastructure, Social infrastructure, Critical Infrastructure, Urban infrastructure, Green infrastructure, Education Infrastructure, Health Infrastructure. (6)
2. Human Resources and Economic Development : The Theory of Demographic Transition, Size and Growth Rate of Population in India, Quantitative Population Growth Differentials in Different Countries, The Sex Composition of Population, Age Composition of Population, Density of Population, Urbanization and Economic Growth in India, The Quality of Population, Population Projections (2001-2026), Demographic Dividend. Human Development in India
- The Concept and Measures of Human Development, Human development Index for Various States in India, National Human Development Report, Changing profile of GDP and employment in India, GDP, Employment and Productivity per Worker in India, Relative Shift in the Shares of NSDP and Employment in Agriculture, Industry and Services in Different States. (6)
3. Sectoral composition of Indian Economy: Primary, Secondary, Tertiary Sectors, Issues in Agriculture sector in India ,land reforms, Green Revolution and agriculture policies of India , Industrial development , small scale and cottage industries, Industrial Policy, Public sector in India, Services sector in India. Areas of Market Failure and Need for State Intervention, Redefining the Role of the State, Liberalization, Privatization and Globalization (LPG) Model of Development, Planning commission v/s NITI Aayog, Public Versus Private Sector Debate, Unorganised Sector and India's Informal Economy. (6)
4. Inequality and Economic Power in India: FDI, Angel Investors and Start-ups, Unicorns, M&A, Investment Models, Role of State, PPP (Public-Private Partnership), Savings and Investment Trends. Growth of Large Industrial Houses Since Independence, Growth of Monopolies and Concentration of Economic Power in India, Competition Policy and Competition Law, Growth and Inequality, India as an Economic Superpower, Growth of the Indian Middle Class, Indian MNCs : Mergers and Acquisitions, Outsourcing, Nationalism and Globalization, Small-scale and Cottage Enterprises, The Role of Small-scale Industries in India
Introduction to Imports and Exports: Meaning and Definition of Imports and Export – Classification – Strategy
and Preparation for Export Marketing – Export Marketing Organizations – Registration Formalities – IEC – RCMC
– Export Licensing – Selection of Export Product – Identification of Markets – Methods of Exporting – Pricing
Quotations – Payment Terms – Letter of Credit - Liberalization of Imports – Negative List for Imports – Categories
of Importers – Special Schemes for Importers. (7+2)
2. Management of Import and Exports: Basic Concept of Import and Exports - Understanding an Export
Transaction - Direct Quotation Method - Spot & Forward rates and booking of Forward contract for exports –
Understanding NOSTRO, VOSTRO and LORO - Payment terms - contents and types of Letter of credit - Uniform
Customs Procedures for Documentary Credits (UCPDC) - Excise clearance - Customs house agents - Marine
insurance. (7+2)
3. Import Export Documentation: Aligned Documentation System – Commercial Invoice – Shipping Bill –
Certificate of Origin – Consular Invoice – Mate’s Receipt – Bill of Lading – GR Form – ISO 9000 – Procedure for
obtaining ISO 9000 – BIS 14000 Certification – Types of Marine Insurance Policies - Import Documents – Transport
Documents – Bill to Entry – Certificate of Inspection – Certificate of Measurements – Freight Declaration - Principal,
Auxiliary & Regulatory set of documents. (7+2)
4. Import Export Procedures: Steps in Export Procedure – Export Contract – Forward Cover – Export Finance –
Institutional framework for Export Finance – Excise Clearance – Pre-shipment Inspection – Methods of Preshipment
Inspection – Marine Insurance – Role of Clearing and Forwarding Agents – Shipping and Customs
Formalities – Customs EDI System – Negotiation of Documents – Realisation of Exports Proceeds - Pre-Import
Procedure – Steps in Import Procedure – Legal Dimensions of Import Procedure – Customs Formalities for Imports
– Warehousing of Imported goods – Exchange Control Provisions for Imports – Retirement of Export Documents.
(7+2)
5. Policy Framework for Imports and Exports: Foreign Trade Policy – Highlights – Special Focus Initiatives – Duty
Drawback – Deemed Exports – ASIDE – MAI & MDA – Star Export Houses – Town of Export Excellence – EPCG
Scheme – Incentives for Exporters. Export Promotion Councils-Commodity Boards – FIEO – IIFT – EOUs – SEZs –
ITPO – ECGC – EXIM Bank.
The document provides information about strategic management concepts and the BCG matrix. It defines key terms like KPIs, critical success factors, organizational capability, and red oceans. It also explains the BCG matrix as a tool to classify business units based on their market growth and share. Business units fall into categories like stars, cash cows, question marks, and dogs. The BCG matrix can help companies analyze their portfolio and prioritize investment and resource allocation strategies.
MBA SEM-III
307– International Business Environment
Generic Elective – University Level
1. Introduction to International Business: Importance, nature and scope of International business; modes of entry into International Business, internationalization process. Globalization: Meaning, Implications, Globalization as a driver of International Business. The Multinational Corporations (MNCs) – evolution, features and dynamics of the Global Enterprises. Consequences of Economic Globalization, Brexit, Reverse globalization. (5+1)
2. International Business Environment: Political Economy of International Business, Economic and Political Systems, Legal Environment, Cultural Environment, Ethics and CSR in International Business. (5+1)
3. International Financial Environment: Foreign Investments - Pattern, Structure and effects. Theories of Foreign Direct Investment, Traditional and Modern theories of FDI, Modes of FDI - Greenfield, Brownfield Investments, Mergers and Acquisitions, Motives of FDI, FDI contrasted with FPI. Basics of Forex Market. (5+1)
4. International Economic Institutions and Agreements: WTO, IMF, World Bank, UNCTAD Tariff and Non-tariff Barriers. Balance of Payment Account: Concept and significance of balance of payments, Current and capital account components. Introduction to Basic Concept of IFRS. (5+1)
5. Emerging Issues in International Business Environment: Growing concern for ecology, Digitalisation; Outsourcing and Global Value chains. Labor and other Environmental Issues, Impact of Pandemic COVID-19 on international trade. (5+1)
International Monetary Fund (IMF)
United Nations Conference on Trade and Development (UNCTAD)
Balance of Payment Account
Introduction to Basic Concept of IFRS.
Emerging Issues in International Business Environment: Growing concern for ecology, Digitalisation; Outsourcing and Global Value chains. Labor and other Environmental Issues, Impact of Pandemic COVID-19 on international trade
This document provides information about the recruitment process at Deloitte. It begins with an overview of the company, describing it as one of the largest accountancy and audit firms worldwide. It then outlines the typical recruitment steps, which usually involve an online test, group discussion, and technical and HR interviews. The online test focuses on aptitude and verbal/logical questions. Group discussions assess communication and presentation skills using case studies. The final round evaluates technical problem-solving abilities through coding tests and puzzles, while also asking common HR questions. Overall, the summary outlines Deloitte's multi-stage selection process and what candidates can expect at each stage.
The document discusses different models of national economic systems and capitalism. It describes market oriented capitalism, which is based on private property, individual freedom, and competitive markets. Developmental capitalism is characterized by a strong state role in guiding development, while social market capitalism blends market forces with social policies. National economies also differ in the role of the state, purposes of economic activity, and structure of private business. Understanding these differences is important for studying the global economy.
Managerial Economics: Concept of Economy, Economics, Microeconomics, Macroeconomics. Nature and
Scope of Managerial Economics, Managerial Economics and decision-making. Concept of Firm, Market, Objectives of
Firm: Profit Maximization Model, Economist Theory of the Firm, Cyert and March’s Behavior Theory, Marris’ Growth
Maximisation Model, Baumol’s Static and Dynamic Models, Williamson’s Managerial Discretionary Theory. (6+1)
2. Utility & Demand Analysis: Utility – Meaning, Utility analysis, Measurement of utility, Law of diminishing
marginal utility, Indifference curve, Consumer’s equilibrium - Budget line and Consumer surplus. Demand - Concept of
Demand, Types of Demand, Determinants of Demand, Law of Demand, Elasticity of Demand, Exceptions to Law of
Demand. Uses of the concept of elasticity. Forecasting: Introduction, Meaning and Forecasting, Level of Demand
Forecasting, Criteria for Good Demand Forecasting, Methods of Demand Forecasting, Survey Methods, Statistical
Methods, Qualitative Methods, Demand Forecasting for a New Products. (Demand Forecasting methods - Conceptual
treatment only numericals not expected) (8+1)
3. Supply & Market Equilibrium: Introduction, Meaning of Supply and Law of Supply, Exceptions to the Law of
Supply, Changes or Shifts in Supply. Elasticity of supply, Factors Determining Elasticity of Supply, Practical Importance,
Market Equilibrium and Changes in Market Equilibrium. Production Analysis: Introduction, Meaning of Production and
Production Function, Cost of Production. Cost Analysis: Private costs and Social Costs, Accounting Costs and Economic
costs, Short run and Long Run costs, Economies of scale, Cost-Output Relationship - Cost Function, Cost-Output
Relationships in the Short Run, and Cost-Output Relationships in the Long Run. (8+1)
4. Revenue Analysis and Pricing Policies: Introduction, Revenue: Meaning and Types, Relationship between
Revenues and Price Elasticity of Demand
The Trading System: Debate over Free Trade – Functions of GATT and WTO, The Uruguay Round and World
Trade Organization, Trade Blocs – EU, OECD, OPEC, SAARC, ASEAN, NAFTA, Threats to Open Trading System,
Developments in International Trade Theory, Bi-lateral, Multilateral Trade Agreements, Impact of Trade wars in
liberalized economy
The document contains multiple choice questions and answers related to international economic regulation, currency exchange rates, and monetary systems like the gold standard, Bretton Woods system, and Special Drawing Rights. It discusses key concepts such as fixed vs floating exchange rates, currency devaluation, nominal exchange rates, and the role of the IMF.
International Trade Laws: International Contracts of Sale of Goods Transactions, International Trade Insurance,
Patents, Trademarks, Copyright and Neighboring Rights. Intellectual property Rights, Dispute settlement
Procedures under GATT & WTO, Payment systems in International Trade, International Labour Organization and
International Labour Laws.
Introduction to Global Economic & political Systems: Meaning of Global Economy and its History Structure and
Components of Global Economy, Theory of Hegemonic Stability, Differences among National Economies, Market
Oriented Capitalism, Developmental Capitalism, Social Market Capitalism, Comparative Analysis, Effects of
Globalization on Indian Economy. (6)
2. The Trading System: Debate over Free Trade – Functions of GATT and WTO, The Uruguay Round and World
Trade Organization, Trade Blocs – EU, OECD, OPEC, SAARC, ASEAN, NAFTA, Threats to Open Trading System,
Developments in International Trade Theory, Bi-lateral, Multilateral Trade Agreements, Impact of Trade wars in
liberalized economy. (6
The document discusses several historical global economic crises:
1) The Great Depression of the 1930s, which began with the 1929 stock market crash in the US and led to 15 million Americans being unemployed by 1933.
2) The Suez Crisis of 1956, which erupted after Egypt nationalized the Suez Canal and was invaded by other countries, disrupting trade for six months.
3) The international debt crisis of the 1980s, which began when Mexico announced it could not repay loans in 1982, eventually affecting 20 countries.
Contemporary issues and Challenges in Global Economic Environment - Indian perspective: Globalization and
its Advocacy, Globalization and its Impact on India, Fair Globalization and the Need for Policy Framework,
Globalization in Reverse Gear-The Threatened Re-emergence of Protectionism. Euro zone Crisis and its impact
on India, Issues in Brexit, World recession, inflationary trends, impact of fluctuating prices of crude oil, gold
etc.
Contemporary issues and Challenges in Global Economic Environment - Indian perspective: Globalization and
its Advocacy, Globalization and its Impact on India, Fair Globalization and the Need for Policy Framework,
Globalization in Reverse Gear-The Threatened Re-emergence of Protectionism. Euro zone Crisis and its impact
on India, Issues in Brexit, World recession, inflationary trends, impact of fluctuating prices of crude oil, gold
etc.
International Monetary System: The International Financial System - Reform of International Monetary Affairs
- The Bretton Wood System and the International Monetary Fund, Controversy over Regulation of International
Finance, Developing Countries' Concerns, Exchange Rate Policy of Developing Economies.
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1. Unit 4 : Banks and NBFCs
Banks and NBFCs: Types of Banks & NBFCs:
Central Bank, Nationalized & Co Operative Banks,
Regional Rural Banks, Scheduled Banks, Private
Banks & Foreign Banks, Mudra Bank, Small Finance
Banks, Specialized Banks, NBFCs.
Types of Banking: Wholesale and Retail Banking,
Investment Banking, Corporate Banking, Private
Banking, Development Banking.
2. RBI : ORIGIN AND EVOLUTION
Prior to establishment of RBI, the functions of a central
bank were virtually done by the Imperial Bank of India
. RBI started its operations from April 1, 1935.
It was established via the RBI act 1934, so it is also
known as a statutory body. Similarly, SBI is also a
statutory body deriving its legality from SBI Act 1955.
RBI did not start as a Government owned bank but as
a privately held bank.
Post-independence, the government passed Reserve
Bank (Transfer to Public Ownership) Act, 1948 and
took over RBI from private shareholders after paying
appropriate compensation.
Thus, nationalization of RBI took place in 1949 and
from January 1, 1949, RBI started working as a
government-owned bank.
3. TIMELINE
1926
The Royal Commission (Hilton Young commission) on
Indian Currency and Finance recommended creation of a
central bank for India. On the basis of mainly this
commission, the RBI Act, 1934 was passed
1934
The RBI Bill was passed and received the Governor
General’s assent.
1 April 1935
Reserve Bank commenced operations as India’s central
bank as a private shareholders’ bank with a paid up capital
of rupees five crore.
1949
The Government of India nationalized the Reserve Bank
under the Reserve Bank (Transfer of Public Ownership)
Act, 1948.
4. • The RBI is the supreme monetary and
banking authority in the country and
controls the banking system in India.
• It is called the ‘Reserve Bank’ as it keeps
the reserves of all commercial banks.
• Original headquarters of RBI was in
Kolkata, but in 1937, it was shifted to
Shahid Bhagat Singh Marg, Mumbai.
5. BANKING REGULATION ACT, 1949
Immediately after the independence, the
Government of India came up with the
Banking Companies Act, 1949.
This act was later changed to Banking
Regulation (Amendment) Act, 1949.
Further, the Banking Regulation
(Amendment) Act of 1965 gave extensive
powers to the Reserve Bank of India as
India’s central banking authority.
6. INSTITUTIONAL STRUCTURE OF RBI
Official Directors
Governor
Governor(Maximum four)
Non-Official Directors
Nominated(10+2)
Others(one each from four local boarders)
Central Board of Directors is the top decision
making body in the RBI. It is made up of official and
non-official directors.
The Governor and Deputy Governors are the official
directors.
There is a Governor and maximum 4 Deputy
Governors (According to Section-8 of RBI Act
1934); so maximum number of Official Directors in
RBI’s Central Board of Directors is five.
7. Governor and Deputy governors are appointed by
Central Government. The tenure of service is
maximum of 3 years and can be reappointed
Further, there are 16 non-official directors in RBI.
Out of them, four represent the local Boards located
in Delhi, Chennai, Kolkata and Mumbai, thus
representing 4 regions of India.
Rest 12 are nominated by the Reserve Bank of
India. These 12 personalities have expertise in
various segments of Indian Economy.
The Central Board of Directors holds minimum 6
meetings every year. Out of which, at least 1
meeting every quarter (every 3 months) is held.
Though, typically the committee of the central board
meets every week (Wednesday).
8. GOVERNOR OF RBI
APPOINTMENT– Appointed after the proposal made
by the Financial Sector Regulatory
Appointments Search Committee (FSRASC),
headed by the Cabinet Secretary.
TERM – According to Section 8 (4) of the RBI Act,
the Governor and Deputy Governors shall hold
office for such term not exceeding 3 years as the
Central Government may fix when appointing
them.
RE-APPOINTMENT – They are eligible for re-
appointment
QUALIFICATION – The RBI Act does not provide for
any specific qualification for the governor.
REMOVAL – The governor can be removed by the
central government.
9. SUBSIDIARIES OF RBI
Deposit Insurance and Credit Guarantee
Corporation (DICGC)
Bharatiya Reserve Bank Note Mudran
Private Limited (BRBNMPL)
Reserve Bank Information Technology
Private Ltd. (ReBIT)
Indian Financial Technology And Allied
Services (IFTAS)
10. No. of Press Four printing presses prints and supply bank notes
Location
1. Dewas – Madhya Pradesh 2. Nashik – Maharashtra
3. Mysore – Karnataka 4. Salboni – West Bengal
Owned by
Govt.
The presses in Madhya Pradesh and Maharashtra are owned by
the Security Printing and Minting Corporation Of India (SPMCIL),
a wholly owned company of GoI. SPMCIL is the only PSU under
the Dept. of Economic Affairs (MoF)
Owned by
RBI
The presses in Karnataka and West Bengal are owned by
Bharatiya Reserve Bank Note Mudran Private Limited
(BRBNMPL), a wholly owned subsidiary of RBI.
Coins
GoI is the issuing authority of coins and supplies coins to the
Reserve bank on demand. The RBI puts the coins into circulation
on behalf of Central Government
ASSISTIVE BODIES IN RBI – Board of Financial
Supervision (BFS) and Board for Payment and Settlement
Systems (BPSS); Both of these are chaired by RBI
Governor.
11. FUNCTIONS OF THE RBI
Bank of Issue
Issuing money is exclusive right of RBI.
All notes except1 note and coins are issued by
RBI.
It also exchanges or destroys old damaged
currencies.
1 notes and coins are issued by Ministry of
Finance and circulated by RBI.
Custodian and Manager of Foreign
exchange
RBI keeps the foreign exchange (i.e. foreign
currency) which flows into the country.
It also keeps the foreign exchange rate stable to
certain extent.
12. Banker and Debt Manager to Government
It acts as a banker to both central and state
governments (except Jammu and Kashmir
and Sikkim).
It keeps deposits of governments and lends to
governments.
RBI carries out lending and borrowing
operations by issuing government securities
on behalf of the government.
Though RBI is not a banker to Sikkim and
Jammu and Kashmir it manages their public
debt to some extent.
13. Banker to bank–
It is the banker of all the banks.
It keeps the reserve of the banks like cash
reserve ratio (CRR) with it.
It provides financial assistance to banks against
mortgaged securities.
It rediscounts bills of exchange.
Usually banks borrow and lend money among
themselves via call money market, regulated
by RBI.
RBI provides enough money to banks and so
called as lender of last resort.
14. Monetary Management – Controller of Money
Supply, Makes Monetary Policy, Credit Control
etc
Financial Regulator – to Commercial banks,
Credit information Companies, RRBs, Local
Area Banks, NBFC etc.
Representative role – RBI represents govt. as a
member of the IMF and World Bank.
Central Clearance and Accounts Settlement –
As RBI keeps cash reserves from commercial
banks therefore it rediscounts their bills of
exchange easily.
15. • Developmental role – Performing a
variety of developmental and promotional
functions under which it did set up
institutions like IDBI, SIDBI, NABARD,
NHB, etc.
• Promotional Roles – Consumer
protection, Ombudsman, Financial
Inclusion through PSL norms, 25% rural
branch requirements etc.
16. NEW INITIATIVE OF RBI IN CREDIT AND
MONETARY POLICY REGIME
Transition to bi-monthly monetary policy cycle
Recognition of the glide path for disinflation (on
recommendation of Urjit Patel Committee report).
Under it, the CPI (C) is used by the RBI as the
“Headline Inflation” for monetary management.
A Monetary Policy Framework (2015) has been put
in place – an agreement in this regard was signed
between the Government of India and the RBI late
February 2015. Under the framework, the RBI is
to ‘target inflation’ at 4 per cent with a
variations of +/- 2 per cent. (of the CPI-C).
17. • Besides the existing repo route, term repos
have been introduced for three set of tenors
– 7, 14 and 28 days – Move aimed at
improving the transmission of policy and
stability to loan market.
• As per the Union Budget 2016-17,
individuals will also be allowed by the RBI
to participate in the government security
market (similar to the developed economies
like the USA).
• RBI is progressively reducing banks’
access to overnight liquidity (at the fixed
repo rate), and encouraging the banks to
increase their dependency on the term repos.
18. INCOME EXPENDITURE
Returns from foreign currency assetsPrinting of currency
Interest on rupee-denominated
government bonds
Staff expenditure
Interest on overnight lending to
commercial banks.
Commission given to
commercial banks.
Management commission on
handling the borrowings of central
and state governments.
Commission to primary
dealers.
SOURCES OF INCOME AND EXPENDITURE OF
RBI
19. ASSETS AND LIABILITIES OF RESERVE BANK OF
INDIA
LIABILITIES ASSETS
Currency held by Public Foreign currency assets
Vault cash held by
commercial banks
Bill purchases and discounts
Government securities Collaterals by commercial banks
Other liabilities Loan and advances
Rupee securities
Gold coin bullion
20. INDEPENDENCE OF THE RBI
Under section 7 of the RBI Act 1934, the central
government may from time to time give such
directions to the RBI as it may, after consultation
with the Governor of the Bank, considered
necessary in the public interest. Moreover, there
is no legal act mandating autonomy of the RBI.
RBI is not only vested with the powers to formulate
the monetary policy but also to monitor the
functioning of all banks.
To play its role effectively, autonomy in its
functioning is sine qua non for RBI.
However, this has been challenged many times
due to a continued tug of war for wresting more
power between the bank and the govt.
21. REASONS FOR DIMINISHING AUTONOMY OF RBI
check the growth of NPAs.
Reduced liquidity in the economy due to tight monetary policy
followed by RBI.
Corrective measures taken by RBI to clean up the banking
system which are not seen very positively by the government.
Impossible trinity of RBI- capital mobility, Exchange rate flexibility
and monetary autonomy.
Clash between short term populist agenda of the government
and long term view for price stability taken by RBI.
One important limitation is that the Reserve Bank is statutorily
limited in undertaking the full scope of actions against public
sector banks (PSBs).
Erosion of statutory powers of the central bank through piece-
meal legislative amendments that directly or indirectly eat
away separation of the central bank from the government.
22. PUBLICATIONS OF RBI
Report on Trend and Progress of Banking in
India-Annually
Financial stability report- Half yearly
Monetary policy report- Half yearly
Report on foreign exchange reserves- Half
yearly
Bi-monthly Policy Statement
Industrial Outlook Survey of the Manufacturing
Sector (Quarterly)
Consumer Confidence Survey (Quarterly)
Report on Financial Review
23. MINIMUM RESERVE SYSTEM OF RBI
With a minimum value of government-held gold of
Rs. 200 crores (Rs. 115 cr rupee should in the
form of Gold or gold bullion and rest Rs. 85 cr
should be in the form of foreign currencies) and
the remaining is backed by the government
securities issued and held by RBI.
OBJECTIVES OF MINIMUM RESERVE SYSTEM
(MRS)
To maintain the money supply in the economy
without inflationary pressure and maintain
the confidence of the general public in the
currency.
24. To ensure the confidence of the Indian
currency holders that the currency held
by them is a legal tender.
RBI wants to ensure the appropriate
supply of currency in the economy
through MRS.
Through the MRS, the RBI accelerate the
economic growth of the country without
increasing the rate of inflation in the
economy.
25. All Indian banks have to follow the compulsory target of priority
sector lending (PSL).
Categories
Domestic
scheduled commercial banks
(excluding RRB and SFB) and
Foreign banks with 20 and above
branches
Foreign banks (less than 20
branches)
Total Priority
Sector
40 per cent of Adjusted Net Bank
Credit or Credit Equivalent
Amount of Off-Balance Sheet
Exposure, whichever is higher.
40 per cent of ANBC or
Credit Equivalent Amount of
Off-Balance Sheet
Exposure, whichever is
higher, to be achieved in a
phased manner by 2020.
Agriculture #
18 per cent of ANBC or Credit
Equivalent Amount of Off-
Balance Sheet Exposure,
whichever is higher.
Within this 18 percent target 8
percent is prescribed for Small
Not applicable
26. All Indian banks have to follow the compulsory target of
priority sector lending (PSL).
Micro Enterprises
7.5 percent of ANBC or Credit
Equivalent Amount of Off-
Balance Sheet Exposure,
whichever is higher.
Not applicable
Advances to
Weaker Sections
10 percent of ANBC or Credit
Equivalent Amount of Off-
Balance Sheet Exposure,
whichever is higher
Not applicable
# Domestic banks have been directed to ensure that their overall
direct lending to non-corporate farmers does not fall below the
system-wide average of the last three years achievement.
27. In 2007, the RBI included five minorities – Buddhists,
Christians, Muslims, Parsis and Sikhs under the PSL.
PRIORITY SECTOR LENDING CERTIFICATES
(PSLCS) – are a mechanism to enable banks to
achieve the PSL target and sub-targets by purchase of
these instruments in the event of shortfall.
Changes in PSL (7 Aug 2020)
The changes include broadening the scope of PSL to
include start-ups, increasing the limits for
renewable energy, including solar power and
compressed biogas plants and increasing the targets
for lending to small and marginal farmers and
weaker sections.
“The revised guidelines also aim to encourage and
support environment-friendly lending policies to help
achieve Sustainable Development Goals (SDGs),”
28. MONETARY POLICY OF RBI
Monetary Policy is an instruments under RBI aimed at regulating
interest rates, money supply and availability of credit in an economy.
RBI decides monetary policy cycle on bi-monthly basis.
OBJECTIVES OF MONETARY POLICY
Economic and financial stability – To regulate monetary expansion
so as to maintain a reasonable degree of price stability. Maintaining
price stability.
Development – To ensure adequate financial resources for the
purpose of development.
flow of credit – Adequate flow of credit to productive sectors.
Employment and growth – Promotion of productive investments &
trade. Equitable distribution of income. Employment generation
International trade and exports – Promotion of exports and economic
growth. Maintaining exchange rate stability.
29. TOOLS OF MONETARY POLICY
Quantitative Instruments
―Liquidity Adjustment Facility (Repo and Rev.
Repo
―Open Market Operations
―SLR, and CRR
―Bank Rate
―Credit Ceiling
―Marginal Standing Facility
Qualitative Instruments
―Credit Rationing
―Moral Suasion
―Promt Corrective Action(PCA)
―Direct action by RBI on banks
―Differential Interests Rates
30. RESERVE RATIO (CRR)
– CRR is the certain % (fixed by the RBI) of Net
Time and Demand Deposits of a Scheduled bank
in India need to kept with the RBI in the form of
cash only.
– CRR aimed to have control over banks credit.
– The ratio between 3% (floor) -15% (ceiling)
removed via RBI (Amendment) Bill 2006.
An increase in CRR higher proportion of
deposits to be kept with RBI by banks less
funds are available to be provided as credit to
the economy money supply will decrease.
31. STATUTORY LIQUIDITY RATIO (SLR)
– The schedule banks needs to also keep certain %
(fixed by the RBI) of their Net Time and Demand
Deposits kept with itself (i.e. not with RBI) in
the form of liquid assets such as cash, gold and
select government securities.
– Need of SLR is to prevents bank from lending all
its deposits which is too risky and it is mandatory
under Banking Regulation Act 1949.
– Similar to CRR, SLR aimed to have control over
banks credit.
– SLR includes G-Secs, thus it ensures certain
amount of money is secured for govt.
– There were excessively high rates (about 25-30
percent) prevalent before 1991 reforms with
provision of ceiling and floor.
32. • BANK RATE
– Rate at which RBI provides long-term borrowings
to its clients. Its clients include GoI, state
governments, banks, financial institutions,
cooperative banks etc.
– Increase in the bank rate is the symbolizes
tightening of RBI monetary policy. (i.e. Dearer
Monetary Policy)
– An increase in bank rate will make borrowing
from RBI expensive discourage banks to borrow
from RBI money supply will tend to decrease.
– It presently uses it as a penalty rate imposed by
RBI on banks for violations of RBI directives.
33. REPO RATE (POLICY RATE)
– It is the rate (Rate of Repurchase) at which commercial
banks borrow from RBI (which provides short-term
liquidity to banks) by mortgaging their dated Government
securities and Treasury bills (T-Bills).
– Increase in repo rate borrowing from RBI
expensive banks will borrow less from RBI less credit will
be provided by banks to households money supply will
decrease.
– Decrease in Repo Rate Borrowing from RBI is cheaper
Banks will borrow more More credit is available Money
supply will increase.
– Reduction in Repo rate helps the banks to get money at a
cheaper rate and increase in Repo rate discourages the
banks to borrow from RBI.
– The Call Money Market of India (inter-bank market)
operates at this rate and banks use this route for
overnight borrowings.
– Repo rate has direct relation with the interest rates
banks charge on the loans they offer (as it affects the
operational cost of the banks).
34. • REVERSE REPO RATE
– It is the rate at which RBI borrows from
commercial Banks by mortgaging its dated
Government securities and Treasury bills.
– An increase in reverse repo rate means that
commercial banks will get more incentives to park
their funds with the RBI, thereby decreasing the
supply of money in the market.
– A decrease in reverse repo rate means that
commercial banks will get less incentive to park
their funds with RBI and thus more money is
available in the market increasing the money
supply.
– It has a direct bearing on the interest rates
charged by the banks and the financial
institutions on their different forms of loans.
35. • MARGINAL STANDING FACILITY (MSF)
– Liquidity management window given by RBI under
which banks can borrow additional overnight (one
day) liquidity over and above LAF window.
– Introduced to deal with unforeseen liquidity crunch
because under LAF banks can borrow overnight
liquidity only by pledging securities over and above
the securities held under SLR requirement.
– Under MSF, on the other hand, banks can pledge
securities held for SLR purposes.
– The interest rate for MSF is Repo rate plus 1%.
Usually, the Reverse Repo rate is Repo rate minus
1%. Therefore, the Repo rate act as an anchor rate.
The Repo rate stands in the middle of two. The MSF
rate stands above and Reverse Repo rate stands
below the Repo Rate.
36. • LIQUIDITY ADJUSTMENT FACILITIES
(LAF)
– Monetary policy instrument that the RBI uses
in order to influence the liquidity
conditions in the market in the short term.
– Under the LAF window, the RBI uses various
instruments to inject or absorb liquidity to
or from the market respectively.
– Repo and Reverse repo rates are a part of
RBI’s “Liquidity Adjustment Facility (LAF)”.
– The RBI introduced a LAF as a result of
the Narasimham Committee on Banking
Sector Reforms (1998).
37. • LONG TERM REPO OPERATIONS (LTRO)
– New policy tool used by the RBI to inject more
liquidity into the Economy.
– Similar to the term repos, but with a longer
maturity period of 1 year and 3 years.
– Through the LTRO, the RBI seeks to inject long
term liquidity into the economy at a lower
interest rate.
– The LTROs would be carried out through e-
Kuber.
• e-Kuber is the Core Banking Solution
(CBS) of the RBI which enables each bank
to connect their single current account across
the country.
38. QUALITATIVE INSTRUMENTS
• CREDIT RATIONING
– Rationing of credit is a method by which the RBI
seeks to limit the maximum amount of loans
and advances and, also in certain cases, fix
ceiling for specific categories of loans and
advances.
• MARGIN REQUIREMENTS
– Qualitative tool used by the RBI in order to
regulate the credit flow to a particular sector.
– When a bank advances credit to its customers it
does so against collateral. However there is a
difference between the value of the security and
the loan offered. This difference is called
‘Margin’.
39. • MORAL SUATION
– It refers to a method adopted by the Central Bank to
persuade or convince the commercial banks to
advance credit in the economic interest of the
country.
– “Persuasion” without applying punitive measures.
– Since it involves no administrative compulsion or
threats of punitive action it is a psychological and
informal means of selective credit control.
• DIFFERENCIAL RATE OF INTEREST
– The differential rate of interest (DRI) is a lending
programme launched by the government in April 1972
which makes it obligatory upon all the public sector
banks in India to lend 1 per cent of the total lending
of the preceding year to ‘the poorest among the
poor’ at an interest rate of 4 per cent per annum.
40. DIRECT ACTION
This step is taken by the RBI against banks that don’t
fulfill conditions and requirements. RBI may refuse to
rediscount their papers or may give excess credits or
charge a penal rate of interest over and above the Bank
rate, for credit demanded beyond a limit.
PROMPT CORRECTIVE ACTION (PCA)
The PCA is triggered when banks breach certain
regulatory requirements like minimum capital, and
quantum of non-performing assets.
To ensure that banks don’t go bust, RBI has put in place
some trigger points to assess, monitor, control and take
corrective actions on banks which are weak and troubled.
CONSUMER CREDIT REGULATION
RBI can issue rules to set the minimum/maximum level of
down-payments and periods of payments for purchase
of certain goods.
41. UNCONVENTIONAL MONETARY POLICY INSTRUMENTS BY
RBI
ZERO INTEREST RATE POLICY (ZIRP)
Policy also called as ‘Quantitative Easing’.
This policy was adopted by USA from 2008 in the wake of
financial crisis to inject money into the economy.
Under this policy, the Fed Bank provides loans to the banks at low
interest rates (0.25%) to spur investment level in the economy.
NEGATIVE INTEREST RATE POLICY (NIRP)
In NIRP, the banks would be required to pay interest to the
central bank if they park their surplus reserves.
This encourages the banks to provide loans to the borrowers at
cheaper rates instead of parking their surplus reserves with the
Central Bank.
This policy is usually followed in developed economies such as
Japan, Denmark, Sweden, Switzerland etc
HELICOPTER MONEY
This involves the central bank of the country printing currency notes
and distributing it to the people free of cost. The idea is to
promote demand in the economy during recession.
42. OTHER MONETARY TOOLS USE BY RBI
CALL MONEY MARKET
It is a Inter Bank money market for short-term financial assets that
are close substitutes of money.
The call money market is an important segment of the money market
where borrowing and lending of funds take place on overnight
basis (for one day)
Money market also known as ‘overnight borrowing money at call’.
Funds raising/borrowing maximum period 14 days (“Short notice”)
Borrowing can take place against securities or without securities.
Rate of Interest – ‘glides’ with ‘repo rate’.
Longer the interest rate higher the interest rate.
Real call rate revolves nearby current repo rate, according to the
availability and demand of fund in market.
Borrowers as well as lenders Schedule commercial banks,
cooperative banks.
Lender only LIC, GIC, mutual funds, IDBI and NABARAD.
43. MARKET STABILISATION SCHEME (MSS)
MSS is a policy tool used by the Reserve Bank of India to suck
out excess liquidity from the market through issue of
securities like T-Bills, Dated Securities etc. on behalf of the
government.
The RBI initiated the MSS scheme in 2004, to control the surge
of US dollars in the Indian market, RBI started buying US
dollars while pumping in rupee
MSS was introduced to deal with the excess liquidity in the
market which could lead to inflation.
The issued securities under the MSS are government bonds
and they are called as Market Stabilisation Bonds and
these securities are owned by the government though they
are issued by the RBI.
Post demonetization (2016) RBI has raised the ceiling for MSS
20 times to suck excess cash out of the banking system and
help banks earn some return from the voluminous deposits
they have garnered after the government’s demonetization
move.
44. STANDING DEPOSIT FACILITY SCHEME
Standing deposit facility is a collateral free
liquidity absorption mechanism which
aims to absorb liquidity from commercial
banking system into RBI.
Concept was first recommended by the Urjit
Patel committee report in 2014.
The new scheme has been proposed by the
Union Budget 2018-19.
The scheme is aimed at helping RBI to
manage liquidity in a better way, especially
when the economy is flush with excess fund
(as was seen after the demonetisation
2016).
45. STRATEGIES OF A MONETARY POLICY MAKING
Exchange rate stability – Singapore & other
export-oriented economies use this.
Multiple Indicators – Central Bank tries to focus on
Growth, Employment, Inflation Control and
Exchange rate stabilization. India’s RBI had this
before 2016.
Inflation targeting – here the Central Bank only
aims to keep inflation under control, then other
indicators (growth, employment, exchange rate)
will automatically fall in line. It was successful in
Western nations, adopted in India 2016, based
on Urjit Patel Committee Report (2013-14), by
amending RBI Act Section 45.
46. MONETARY POLICY COMMITTEE (MPC)
MPC is a statutory body created under Monetary
Policy Framework Agreement 2015 between the
RBI and Government in 2016
MPC is entrusted with the responsibility of fixing
the benchmark repo rate (policy rate) required
to contain inflation as defined in the Monetary
Policy Framework Agreement.
The meetings of the MPC are held at least 4 times
a year and it publishes its decisions after each
such meeting.
MPC is 6-member body including 3 members from
RBI and 3 members to be nominated by the
Central Government.
47. These Government of India nominees are appointed by the Central
Government based on the recommendations of a search cum
selection committee. Moreover, nominees of the MPC will hold
office for a period of four years and will not be eligible for re-
appointment.
Decisions are taken by majority with the Governor having the
casting vote in case of a tie.
Chairperson of MPC – RBI Governor
Quorum for meeting – 4 members
To ensure transparency – Govt can send message only in writing.
Committee must publish its proceedings of the meeting on the 14th
day, and “Monetary policy report” at every 6 months.
Inflation target decided by Union Government after consulting with
RBI Governor.
The present mandate of the committee is to maintain 4% annual
inflation (until March 31, 2021) with bandwidth of ceiling 6% and a
floor of 2%.
If Target fail: If inflation not kept in 4% +/-2% zone for 3 consecutive
quarters then Committee must send report to Govt. with reasons
and remedies.
48. LIMITATIONS OF MONETARY POLICY
Existence of black money in the economy limits
the working of the monetary policy
Conflicting objectives – To achieve the objective of
economic development, the monetary policy is to
be expansionary but to achieve the objective of
price stability and curb on inflation policy is to be
contractionary.
Underdeveloped Indian money market – The
weak money market limits the coverage, as also
the efficient working of the monetary policy.
Indian Banks don’t immediately pass on the RBI
rate cuts to customers (monetary transmission),
citing NPA/Bad loans/profitability problem.
49. LIMITATIONS OF MONETARY POLICY
Government Side Issues – Fiscal repression,
Fiscal slippage, Fiscal deficit, Subsidy
leakage, Populist Loan-waivers etc.
Structural Issues in Economy – Lack of
electricity-road infrastructure / Ease of Doing
Biz production, long pending land and labour
reforms.
Presence of Informal moneylenders in rural
areas – circulate illegitimacy money at
exorbitant interest rates.
Poor penetration of banking sector and
financial inclusion etc.
50. CHRONOLOGY OF LENDING RATES
YEAR INITIATIVES
1969
Began nationalization of private banks, and ‘Administered Interest
Rates’ on them.
1991
M. Narasimham suggested deregulation: Govt should not dictate /
administer individual banks’ interest rates. RBI should only give
methodology to banks.
2003 RBI introduced Bench march Prime lending rate(BPLR).
2010
RBI introduced BASE Rate + Spread system; update frequency on
individual banks’ discretion.
2016
RBI introduced Marginal cost of lending rates(MCLR) + Spread
system.
2019
The RBI has made it mandatory for all banks to link all new floating
rate loans (i.e. personal/retail loans, loans to MSMEs) to an external
benchmarking. The move is aimed at faster transmission of
monetary policy rates.
51. WAYS AND MEANS OF ADVANCES (WMA)
The RBI gives temporary loan facilities to the
centre and state governments as a banker to
the government. This temporary loan facility is
called WMA.
It is a mechanism to provide to States to help them
tide over temporary mismatches in the cash
flow of their receipts and payments.
It was introduced on April 1, 1997, after putting an
end to the four-decade-old system of ad-hoc
(temporary) Treasury Bills to finance the Central
Government deficit.
Under Section 17(5) of RBI Act, 1934, the RBI
provides Ways and Means Advances (WMA) to
the central and State/UT governments.
52. WAYS TO AVAIL WMA
This facility can be availed by the government if
it needs immediate cash from the RBI.
The WMA is to be vacated after 90 days.
The interest rate for WMA is currently charged
at the repo rate.
The limits for WMA are mutually decided by
the RBI and the Government of India.
TYPES OF WMA
Normal
Special
53. Special WMA or Special Drawing Facility is provided
against the collateral of the government
securities held by the state.
After the state has exhausted the limit of SDF, it gets
normal WMA. The interest rate for SDF is one
percentage point less than the repo rate.
The number of loans under normal WMA is based on
a three-year average of actual revenue and
capital expenditure of the state.
The RBI has raised the Ways and Means Advances,
or WMA, limit by 30% for all States and UTs to
enable them to tide over the crisis caused by
COVID-19 outbreak.