1. RBI IS OLDEST INSTITUTION. 2. UMBRELLA FOR ALL FINANCIAL ACTIVITIES IN INDIA. 3. FUNCTIONS ARE MONETARY AND NON-MONETARY. 4. SHOULD BE AUTONOMOUS AUTHORITY. 5. NEEDS TO PROACTIVE. 6. HIGH-TECH, RIGID AND FLEXIBLE. 7. FAITH AND CONFIDENCE OF COMMON PEOPLE.

1. CHANGING ROLE OF RBI
IN THE NEW LIBERAL
ECONOMIC SETUP

2. 1.INTRODUCTIO
N1.INDIA IS,
A. DIVERSIFIED
B. POPULATED
C. DEVELOPING,
COUNTRY.
2.IMPACT OF
ICT
3. DRIVERS OF ECONOMY,
A.
PRODUCTION
INDUSTRIAL
AGRICULTU
RE
B. SERVICES
4. PYGMAILON

3. 3.RESERVE BANK OF INDIA
1. ESTABLISHED IN 1935, BEFORE
SUPREME COURT
2. CENTRAL BANK
4. HEAD OFFICE AT
MUMBAI
5. 27 REGIONAL OFFICES
7. FIVE TRAINING
ESTABLISHMENTS.
3. 21 BOD’S ---GOVERNER --- 4 DY. GOVERNERS – EX.
DIRECTORS
6. SUBSIDIARIES

4. 4. EXISTING ROLE AND
FUNCTIONS

5. Daily Sakal dt. 17th
May2018
IE

6. 5. CHANGING ECONOMIC SCENARIO IN THE
COUNTRY
 DEMOGRAPHIC DIVIDEND IS LIKELY TO CREATE A LARGE
DIGITAL SAVVY CUSTOMER SEGMENT:
• INDIA’S DEMOGRAPHIC DIVIDEND WELL SUITED TO SWITCH
TO DIGITAL BEHAVIOR.
• MEDIAN AGE TO BE 29 YEARS BY 2020, WITH 900 MILLION IN
THE AGE GROUP OF 15-60 YEARS BY 2025.
 UN-PENETRATED OR FINANCIALLY EXCLUDED, ALONG
WITH GOI INITIATIVES, OFFER NATURAL GROWTH
OPPORTUNITIES:
• 50% OF UNBANKED POPULATION AGGRESSIVELY
TARGETED TO BE BROUGHT UNDER THE BANKING
UMBRELLA.
• ~200 MILLION ACCOUNTS OPENED UNDER PMJDY.
• RS 50,000 CRORES TARGETED TO BE TRANSFERRED

7.  INCREASING MOBILE PENETRATION AND
SMARTPHONE USAGE:
• 1 BILLION MOBILE SUBSCRIBER BASE (42% IN RURAL),
WITH A TELE-DENSITY OF 79 (RURAL - 48.6 & URBAN -
148).
• MOBILE PENETRATION OF 90% TO DRIVE FINANCIAL
LITERACY & INCLUSION, AS PLAYERS BET ON MOBILE-
BASED FINANCIAL SERVICES.
• SMARTPHONE PROLIFERATION OF 50% BY 2020 &
FALLING HANDSET COSTS TO INCREASE ACCEPTANCE,
BETTER SERVICING & SECURITY.
Data on Digital banking penetration based on MXV Analysis

8.  CONSUMER BEHAVIOR IS CHANGING TOWARDS RAPID
ADOPTION OF DIGITIZATION:
• MARKETS EXPOSED TO INNOVATIVE & DISRUPTIVE
DIGITAL-BASED SERVICES (E-COMMERCE PLAYERS AND E-
GOVERNANCE SERVICES).
• CHANGING CLIENT PREFERENCES TO MOVE FROM
PRICING (DISCOUNTS) TO CONVENIENCE AND SERVICE.
72
63
54
46 44
31
14
12
15
25
52
28 59
59
16 22 21
2
28
10
27
Investment
insurance
CASA
Loans
RETAIL BANKING REVENUE POOL BY PRODUCT CATEGORY (%)
Source: McKinsey’s “Building a digital banking business”

9. 6.FUTURE ROLE AND FUNCTIONS OF
R.B.I.
FUTURE TENSE: “TECH DISRUPTIONS THREATENING THE
VERY EXISTENCE OF BANKS” RBI’S R GANDHI
“THE NEW CONSUMER IS ADDICTED TO CONNECTIVITY
CONVENIENCE AND FREEDOM. THEY DON’T JUST WANT
VALUE-ADDED SERVICES, BUT SUCH SERVICES ANYWHERE,
ANYTIME, ANYHOW.”
“BANKING IS NO LONGER WHAT A BANK DOES BUT IT IS
ALSO WHAT A NON-BANK DOES. BANKS ARE NO LONGER
THOSE ENTITIES WHICH DO BANKING EXCLUSIVELY. NOW
OTHERS, THE NON-BANKS, ALSO DO THOSE,” HE SAID.
“IS THERE ANY ELEMENT OF BANKING TODAY WHICH
REMAINS THE EXCLUSIVE PRIVILEGE OF BANKS? SADLY
NO,” HE CONCLUDED.
PUBLISHED ON AUGUST 17, 2016

10. 2. TRANSPARENT
3. EQUALITY
4. RIGID AND FLEXIBLE
5. FINANCIAL LITRACY AND INCLUSION
7. LIGISLATION: PROMOTING INDIAN
ECONOMY
6. REGULATOR COUNSELOR
1.
AUTONOMOUS

11. 7. CONCLUDING REMARKS
1. RBI IS OLDEST INSTITUTION.
2. UMBRELLA FOR ALL FINANCIAL ACTIVITIES IN
INDIA.
3. FUNCTIONS ARE MONETARY AND NON-
MONETARY.
4. SHOULD BE AUTONOMOUS AUTHORITY.
5. NEEDS TO PROACTIVE.
6. HIGH-TECH, RIGID AND FLEXIBLE.
7. FAITH AND CONFIDENCE OF COMMON PEOPLE.