The document discusses the role of the Reserve Bank of India (RBI) in the growth of the Indian economy. It outlines the RBI's evolving functions over time, including as the monetary authority, issuer of currency, banker and financial advisor to the government, banker to banks, and regulator of the banking and financial system. The RBI works to maintain price stability, ensure adequate credit flows, promote financial stability, and support economic growth, while operating under various Acts and with organizational structures that include regional offices and local boards.
The document provides an overview of the Reserve Bank of India (RBI), including its history, functions, and monetary policy tools. It establishes that RBI was established in 1935 as India's central bank and was nationalized in 1949. Its key functions include acting as a bank of issue, banker to the government, maintaining foreign exchange reserves, and using various quantitative and qualitative tools to regulate money supply and credit in the economy. These tools include bank rate, cash reserve ratio, statutory liquidity ratio, open market operations, and selective credit controls. The document also briefly outlines RBI's monetary policies and targets from 2005-2006 and the current monetary policy.
The document then discusses the key aspects of Basel I and Basel II accords. Basel I, introduced in 1998, required banks to hold capital equal to at least 8% of total assets, measured according to their riskiness across four buckets (0%, 20%, 50%, 100%). Basel II, published in 2004, consists of three pillars - minimum capital requirements, supervisory review, and market discipline. It introduced a risk
The Narasimham Committee was formed in 1991 and 1998 to reform India's financial system. The 1991 report recommended reducing statutory liquidity and cash reserve ratios, phasing out directed credit programs, deregulating interest rates, restructuring banks, and establishing an asset recovery tribunal. The 1998 report recommended strengthening banks' capital adequacy, narrowing weak banks' scopes, reviewing banking laws, and increasing bank autonomy and privatization. Both reports aimed to modernize and stabilize India's banking system.
A study on non performing assets of financial institutionsAjilal
This document appears to be a project report submitted for a Master's degree. It analyzes the non-performing assets of financial institutions in India. The study compares the NPAs of a cooperative bank, public sector bank, and private sector bank from 2010-2014. It finds that the cooperative bank has the highest NPA ratio compared to advances and net profit. Most NPAs are in the agricultural sector and among female borrowers aged 35-50. The report provides suggestions for reducing NPAs, such as better screening of loan applicants and monitoring of loans. It concludes that controlling NPAs is important for the strength and competitiveness of India's banking system.
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.
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.
The document provides an overview of the Reserve Bank of India (RBI), including its history, functions, and monetary policy tools. It establishes that RBI was established in 1935 as India's central bank and was nationalized in 1949. Its key functions include acting as a bank of issue, banker to the government, maintaining foreign exchange reserves, and using various quantitative and qualitative tools to regulate money supply and credit in the economy. These tools include bank rate, cash reserve ratio, statutory liquidity ratio, open market operations, and selective credit controls. The document also briefly outlines RBI's monetary policies and targets from 2005-2006 and the current monetary policy.
The document then discusses the key aspects of Basel I and Basel II accords. Basel I, introduced in 1998, required banks to hold capital equal to at least 8% of total assets, measured according to their riskiness across four buckets (0%, 20%, 50%, 100%). Basel II, published in 2004, consists of three pillars - minimum capital requirements, supervisory review, and market discipline. It introduced a risk
The Narasimham Committee was formed in 1991 and 1998 to reform India's financial system. The 1991 report recommended reducing statutory liquidity and cash reserve ratios, phasing out directed credit programs, deregulating interest rates, restructuring banks, and establishing an asset recovery tribunal. The 1998 report recommended strengthening banks' capital adequacy, narrowing weak banks' scopes, reviewing banking laws, and increasing bank autonomy and privatization. Both reports aimed to modernize and stabilize India's banking system.
A study on non performing assets of financial institutionsAjilal
This document appears to be a project report submitted for a Master's degree. It analyzes the non-performing assets of financial institutions in India. The study compares the NPAs of a cooperative bank, public sector bank, and private sector bank from 2010-2014. It finds that the cooperative bank has the highest NPA ratio compared to advances and net profit. Most NPAs are in the agricultural sector and among female borrowers aged 35-50. The report provides suggestions for reducing NPAs, such as better screening of loan applicants and monitoring of loans. It concludes that controlling NPAs is important for the strength and competitiveness of India's banking system.
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.
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.
The document discusses the doctrine of constructive notice as it relates to companies. It notes that a company's memorandum of association and articles of association, which are filed with the registrar of companies, become public documents. It is therefore the duty of anyone dealing with a company to inspect these documents first before entering into dealings with the company. This doctrine provides protection to companies against outsiders by assuming the outsiders have read and understood the memorandum and articles of association. Two case examples are provided that demonstrate how this doctrine was applied when a mortgage deed was invalid due to missing signatures as outlined in the articles of association.
The document discusses the Narasimham Committee reports from 1991 and 1998 and their recommendations regarding the banking sector in India. Some of the key recommendations included establishing asset reconstruction companies to take bad debts off banks' balance sheets, increasing banks' capital adequacy ratios, reducing statutory liquidity ratios over time, and granting more autonomy to public sector banks. The document also provides details on two of the early asset reconstruction companies established in India - ARCIL and ACE - including their ownership structures.
The document discusses the recommendations of the Narsimham Committee I, which was formed in 1991 to recommend reforms for improving the efficiency and effectiveness of India's financial system and banking sector. The committee recommended several reforms, including reducing statutory pre-emptions like SLR and CRR, introducing interest payments on CRR balances, phasing out directed lending programs, increasing transparency, improving loan recovery processes, deregulating interest rates, restructuring banks, introducing standardized asset classification and provisioning norms, allowing entry of private banks, abolishing branch licensing controls, implementing capital adequacy requirements, standardizing income recognition practices, and having RBI solely regulate the banking system instead of joint control with the Ministry of Finance. Many of the recommendations were
Narsimham committee report and its impact 2014Akshay Thakur
The document summarizes the key recommendations of the Narasimham Committee reports from 1991 and 1998 on Indian banking sector reforms. The 1991 report recommended reducing CRR and SLR, phasing out directed lending, interest rate deregulation, and restructuring banks. The 1998 report reviewed implementation of 1991 reforms and recommended further strengthening banks through mergers, raising capital adequacy ratios, and increasing bank autonomy. Both reports significantly improved the stability and resilience of India's banking system.
The National Stock Exchange of India (NSE) is the largest stock exchange in India. It was established in 1992 as the first demutualized electronic exchange. [NSE provides a modern, automated, electronic trading system and was the first to offer online trading access nationwide.] It introduced transparency to market trading by separating exchange management from ownership. NSE facilitates trading in equities, derivatives, debt instruments, mutual funds and more. The Nifty 50 index tracks the top 50 Indian companies listed on NSE. Trading occurs on all days except weekends and holidays from 9:15 am to 3:30 pm.
The document discusses monetary policy in India. It begins by defining monetary policy and identifying the Reserve Bank of India as the central monetary authority. It then outlines the key objectives of monetary policy as maintaining full employment, price stability, economic growth, and balance of payments. The document goes on to explain the types of monetary policy as expansionary and contractionary. It also details the various tools used in monetary policy, including cash reserve ratio, statutory liquidity ratio, repo rate, and open market operations. In its conclusion, the document states that monetary policy deals with money supply to prevent inflation and recession through instruments administered by the RBI.
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 (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 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 document discusses credit control methods used by the Reserve Bank of India (RBI). It outlines both quantitative and qualitative methods. Quantitative methods like bank rate, open market operations, cash reserve ratio, and statutory liquidity ratio aim to control the total volume of credit. Qualitative methods like rationing credit, margin requirements, and directives aim to influence the use and direction of credit flows. The RBI uses these various tools to promote economic stability and growth.
The document provides an overview of banking sector reforms in India. It discusses key recommendations of the Narasimham Committee reports which laid the foundation for banking sector reforms in India, including reducing statutory liquidity ratio and cash reserve ratio, introducing minimum capital adequacy ratios, and adopting uniform accounting practices. The reforms aimed to make the Indian banking system more efficient, competitive, and in line with global standards. It also discusses some challenges in implementing the reforms such as the need to reduce non-performing assets and strengthen weak banks.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 and nationalized in 1949. RBI has several key functions including issuing currency, acting as the government's bank and lender of last resort, managing foreign exchange reserves, and regulating and supervising financial institutions. It oversees monetary policy and maintains price stability while supporting growth. RBI regulates banks, non-banking financial institutions, cooperative banks, and payment systems. Its main objectives are to regulate currency and credit systems and maintain monetary stability in India.
The Hindu Undivided Family (HUF) and partnership are distinct business entities with different characteristics. A HUF arises by status or operation of law based on Hindu principles of joint family, while a partnership arises from an agreement between partners. Members of a HUF are called coparceners and have rights based on birth, whereas partners must consent to new members joining. On death, a partnership may dissolve but an HUF continues until partitioned between family members. Management of an HUF business generally vests in the Karta, while partners equally manage a partnership.
-The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee.
-It commenced its operations on 1st April 1935 in accordance with the Reserve Bank of India Act, 1934.
-Started as a Shareholders Bank with original share capital divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders.
-The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors.
MAJOR Functions-
1.Issue of Bank Notes
2.Banker to Government
3.Custodian of Cash Reserves of Commercial Banks
4.Custodian of Country's Foreign Currency Reserves
5.Lender of Last Resort
6.Central Clearance and Accounts Settlement
7.Controller of Credit
The document summarizes several major financial institutions in India:
The Unit Trust of India (UTI) is an investment trust that mobilizes savings from small investors and channels them into shares and debentures of profitable companies to allow investors to participate in industrial growth.
The Industrial Development Bank of India (IDBI) was established to provide term financing to industry and coordinate other financial institutions. It aims to support industrial development.
State Financial Corporations (SFCs) were established to meet the financial needs of small and medium enterprises. They provide loans and assistance.
The Industrial Finance Corporation of India (IFCI) provides medium and long term credit to industrial projects in corporate and cooperative sectors. It aims
The document provides information about the Reserve Bank of India (RBI), which is India's central bank. It was established in 1934 and frames monetary policy. Some key points:
- RBI is among the top 10 most influential central banks globally based on GDP and other economic factors.
- It aims to maintain price stability and promote growth. The RBI Governor and committee determine the repo rate to influence monetary conditions.
- Tools include repo rate, CRR, OMOs and more to target inflation and ensure adequate credit in the economy.
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.
This document discusses the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 on the recommendation of the G.S. Patel committee and was made a statutory body in 1992 through an act. SEBI is headquartered in Mumbai and is managed by 5 members appointed by the Central Government. The document outlines SEBI's role of providing an efficient market and protecting investors. It also discusses SEBI's objectives, regulatory functions, development functions, and protective functions. Finally, it provides details on SEBI's organizational structure and the objectives of its advisory committees.
The Narasimham Committee, established in 1991, submitted two reports that laid the foundation for reforming the Indian banking sector. The committee recommended reducing statutory reserve requirements to improve bank efficiency and productivity. It also recommended phasing out directed lending programs, adopting uniform accounting practices, and increasing capital adequacy requirements. The 1998 Narasimham Committee report further recommended strengthening the banking system, experimenting with narrow banking, increasing capital adequacy ratios, and updating banking laws. The committees' recommendations helped spur the emergence of new private banks and opened up India's capital markets.
Basel II is an international standard that aims to strengthen the regulation, supervision and risk management within the banking sector. It improves upon Basel I by making capital requirements more risk sensitive and aligning regulatory capital more closely with underlying bank risks. Basel II consists of three pillars that cover minimum capital requirements, supervisory review, and market discipline. Implementation of Basel II varies across countries and regulators but aims to modernize capital adequacy standards to be more comprehensive and risk sensitive.
Apart from its Monetary policies to combat Inflation, Recession and like issues; Central Bank also has a significant role to play in the development of a country. This brief presentation highlights the roles India's Central Bank - the Reserve Bank of India has to play in the country's development.
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 document discusses the doctrine of constructive notice as it relates to companies. It notes that a company's memorandum of association and articles of association, which are filed with the registrar of companies, become public documents. It is therefore the duty of anyone dealing with a company to inspect these documents first before entering into dealings with the company. This doctrine provides protection to companies against outsiders by assuming the outsiders have read and understood the memorandum and articles of association. Two case examples are provided that demonstrate how this doctrine was applied when a mortgage deed was invalid due to missing signatures as outlined in the articles of association.
The document discusses the Narasimham Committee reports from 1991 and 1998 and their recommendations regarding the banking sector in India. Some of the key recommendations included establishing asset reconstruction companies to take bad debts off banks' balance sheets, increasing banks' capital adequacy ratios, reducing statutory liquidity ratios over time, and granting more autonomy to public sector banks. The document also provides details on two of the early asset reconstruction companies established in India - ARCIL and ACE - including their ownership structures.
The document discusses the recommendations of the Narsimham Committee I, which was formed in 1991 to recommend reforms for improving the efficiency and effectiveness of India's financial system and banking sector. The committee recommended several reforms, including reducing statutory pre-emptions like SLR and CRR, introducing interest payments on CRR balances, phasing out directed lending programs, increasing transparency, improving loan recovery processes, deregulating interest rates, restructuring banks, introducing standardized asset classification and provisioning norms, allowing entry of private banks, abolishing branch licensing controls, implementing capital adequacy requirements, standardizing income recognition practices, and having RBI solely regulate the banking system instead of joint control with the Ministry of Finance. Many of the recommendations were
Narsimham committee report and its impact 2014Akshay Thakur
The document summarizes the key recommendations of the Narasimham Committee reports from 1991 and 1998 on Indian banking sector reforms. The 1991 report recommended reducing CRR and SLR, phasing out directed lending, interest rate deregulation, and restructuring banks. The 1998 report reviewed implementation of 1991 reforms and recommended further strengthening banks through mergers, raising capital adequacy ratios, and increasing bank autonomy. Both reports significantly improved the stability and resilience of India's banking system.
The National Stock Exchange of India (NSE) is the largest stock exchange in India. It was established in 1992 as the first demutualized electronic exchange. [NSE provides a modern, automated, electronic trading system and was the first to offer online trading access nationwide.] It introduced transparency to market trading by separating exchange management from ownership. NSE facilitates trading in equities, derivatives, debt instruments, mutual funds and more. The Nifty 50 index tracks the top 50 Indian companies listed on NSE. Trading occurs on all days except weekends and holidays from 9:15 am to 3:30 pm.
The document discusses monetary policy in India. It begins by defining monetary policy and identifying the Reserve Bank of India as the central monetary authority. It then outlines the key objectives of monetary policy as maintaining full employment, price stability, economic growth, and balance of payments. The document goes on to explain the types of monetary policy as expansionary and contractionary. It also details the various tools used in monetary policy, including cash reserve ratio, statutory liquidity ratio, repo rate, and open market operations. In its conclusion, the document states that monetary policy deals with money supply to prevent inflation and recession through instruments administered by the RBI.
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 (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 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 document discusses credit control methods used by the Reserve Bank of India (RBI). It outlines both quantitative and qualitative methods. Quantitative methods like bank rate, open market operations, cash reserve ratio, and statutory liquidity ratio aim to control the total volume of credit. Qualitative methods like rationing credit, margin requirements, and directives aim to influence the use and direction of credit flows. The RBI uses these various tools to promote economic stability and growth.
The document provides an overview of banking sector reforms in India. It discusses key recommendations of the Narasimham Committee reports which laid the foundation for banking sector reforms in India, including reducing statutory liquidity ratio and cash reserve ratio, introducing minimum capital adequacy ratios, and adopting uniform accounting practices. The reforms aimed to make the Indian banking system more efficient, competitive, and in line with global standards. It also discusses some challenges in implementing the reforms such as the need to reduce non-performing assets and strengthen weak banks.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 and nationalized in 1949. RBI has several key functions including issuing currency, acting as the government's bank and lender of last resort, managing foreign exchange reserves, and regulating and supervising financial institutions. It oversees monetary policy and maintains price stability while supporting growth. RBI regulates banks, non-banking financial institutions, cooperative banks, and payment systems. Its main objectives are to regulate currency and credit systems and maintain monetary stability in India.
The Hindu Undivided Family (HUF) and partnership are distinct business entities with different characteristics. A HUF arises by status or operation of law based on Hindu principles of joint family, while a partnership arises from an agreement between partners. Members of a HUF are called coparceners and have rights based on birth, whereas partners must consent to new members joining. On death, a partnership may dissolve but an HUF continues until partitioned between family members. Management of an HUF business generally vests in the Karta, while partners equally manage a partnership.
-The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee.
-It commenced its operations on 1st April 1935 in accordance with the Reserve Bank of India Act, 1934.
-Started as a Shareholders Bank with original share capital divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders.
-The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors.
MAJOR Functions-
1.Issue of Bank Notes
2.Banker to Government
3.Custodian of Cash Reserves of Commercial Banks
4.Custodian of Country's Foreign Currency Reserves
5.Lender of Last Resort
6.Central Clearance and Accounts Settlement
7.Controller of Credit
The document summarizes several major financial institutions in India:
The Unit Trust of India (UTI) is an investment trust that mobilizes savings from small investors and channels them into shares and debentures of profitable companies to allow investors to participate in industrial growth.
The Industrial Development Bank of India (IDBI) was established to provide term financing to industry and coordinate other financial institutions. It aims to support industrial development.
State Financial Corporations (SFCs) were established to meet the financial needs of small and medium enterprises. They provide loans and assistance.
The Industrial Finance Corporation of India (IFCI) provides medium and long term credit to industrial projects in corporate and cooperative sectors. It aims
The document provides information about the Reserve Bank of India (RBI), which is India's central bank. It was established in 1934 and frames monetary policy. Some key points:
- RBI is among the top 10 most influential central banks globally based on GDP and other economic factors.
- It aims to maintain price stability and promote growth. The RBI Governor and committee determine the repo rate to influence monetary conditions.
- Tools include repo rate, CRR, OMOs and more to target inflation and ensure adequate credit in the economy.
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.
This document discusses the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 on the recommendation of the G.S. Patel committee and was made a statutory body in 1992 through an act. SEBI is headquartered in Mumbai and is managed by 5 members appointed by the Central Government. The document outlines SEBI's role of providing an efficient market and protecting investors. It also discusses SEBI's objectives, regulatory functions, development functions, and protective functions. Finally, it provides details on SEBI's organizational structure and the objectives of its advisory committees.
The Narasimham Committee, established in 1991, submitted two reports that laid the foundation for reforming the Indian banking sector. The committee recommended reducing statutory reserve requirements to improve bank efficiency and productivity. It also recommended phasing out directed lending programs, adopting uniform accounting practices, and increasing capital adequacy requirements. The 1998 Narasimham Committee report further recommended strengthening the banking system, experimenting with narrow banking, increasing capital adequacy ratios, and updating banking laws. The committees' recommendations helped spur the emergence of new private banks and opened up India's capital markets.
Basel II is an international standard that aims to strengthen the regulation, supervision and risk management within the banking sector. It improves upon Basel I by making capital requirements more risk sensitive and aligning regulatory capital more closely with underlying bank risks. Basel II consists of three pillars that cover minimum capital requirements, supervisory review, and market discipline. Implementation of Basel II varies across countries and regulators but aims to modernize capital adequacy standards to be more comprehensive and risk sensitive.
Apart from its Monetary policies to combat Inflation, Recession and like issues; Central Bank also has a significant role to play in the development of a country. This brief presentation highlights the roles India's Central Bank - the Reserve Bank of India has to play in the country's development.
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 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.
This document provides an overview of the Reserve Bank of India (RBI). It discusses the RBI's history, governance structure, key roles as the central bank and monetary authority of India including regulating the financial system, managing foreign exchange and currency, and its developmental functions. The document also outlines the RBI's objectives in being established, its subsidiaries, and instruments used for credit control.
The Reserve Bank of India (RBI) performs several key monetary and non-monetary functions:
As the country's central bank, the RBI formulates and implements monetary policy, ensures an adequate supply of money, and monitors credit to productive sectors. It also designs, prints, and distributes currency. Additionally, the RBI acts as the government's banker, facilitates inter-bank transactions, regulates other banks, collects economic statistics, manages foreign exchange reserves, and promotes development through banking initiatives. One of its major tools for controlling the money supply is credit control.
The document provides an overview of the Reserve Bank of India's (RBI) role as a regulator. It discusses the RBI's role in regulating the banking system, payment and settlement systems, credit markets, foreign exchange, and the overall financial system. The RBI oversees commercial banks, cooperative banks, non-banking financial companies, and more. It uses tools like on-site inspections, reporting requirements, and thematic reviews to regulate these entities and promote stability and development across India's financial sector. The RBI also works to address ongoing challenges for different types of financial institutions.
Reserve Bank Of India : Role ,Functions Structure and ManagementBinto Mathachan
The Reserve Bank of India (RBI) is India's central bank that was established in 1935. It functions as the bank of banks and monetary authority in India. The RBI manages the country's money supply and foreign exchange, acts as a bank for the central and state governments, and regulates and supervises financial institutions. It is headquartered in Mumbai and governed by a central board of directors appointed by the Government of India.
The document discusses central banking and the functions of central banks. It provides background on the origin and structure of central banking. The Reserve Bank of India (RBI) is described as the central bank of India, established in 1935. The RBI regulates monetary policy through various instruments like cash reserve ratios, statutory liquidity ratios, repo rates, and open market operations. It aims to stabilize prices, foreign exchange rates, and business cycles through its qualitative and quantitative credit control measures.
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.
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 discusses the evolving role of the Reserve Bank of India (RBI). Some key points:
1) While RBI was established in 1934, it has adapted to changing economic realities over time, gaining some autonomy over monetary management and financial regulation.
2) De jure, RBI does not have full autonomy according to recent central banking trends. However, de facto it has gradually gained more autonomy, especially since 1991 reforms in areas like conducting monetary policy.
3) RBI's monetary policy objectives have evolved to maintaining price stability while ensuring adequate credit flow for growth. More recently, macroeconomic and financial stability have also become important considerations.
The document discusses the role and functions of central banks. It begins by explaining that a central bank acts as the leader of the money market in a country, supervising commercial banks and financial institutions. As a bank of issue, it is the sole issuer of currency and maintains close ties to the government.
It then contrasts central banks with commercial banks, noting that central banks do not aim to generate profits but rather control the banking system and support economic policy. Central banks are generally government organizations. The document proceeds to outline various functions of central banks, including acting as a bank of last resort, managing foreign exchange reserves, implementing monetary policy, and using various tools like bank rates, open market operations, and cash reserve ratios to influence
The Reserve Bank of India (RBI) performs several key functions:
1. As the country's central bank and monetary authority, the RBI formulates, implements, and monitors monetary policy to maintain price stability and ensure adequate credit flows. It uses various tools like interest rates, cash reserve ratios, and open market operations to target interest rates and influence the money supply.
2. The RBI issues and destroys currency notes unfit for circulation to effectively act as the sole issuer of India's paper currency.
3. As a banker to banks, the RBI serves as a bank for commercial banks by letting them deposit funds and handle their accounts.
The document discusses the functions of the Reserve Bank of India (RBI). It states that RBI serves as India's central banking institution and monetary authority, formulating and implementing monetary policy. It regulates and supervises the country's financial system, manages foreign exchange, issues currency, acts as a banker to commercial banks, and detects counterfeit currency. RBI works to maintain public confidence in the banking system and provide efficient financial services, while ensuring adequate credit flows to productive sectors of the economy.
The document discusses the role of the Reserve Bank of India (RBI) in supporting the cooperative movement in India both before and after independence. Prior to independence, RBI's contributions were limited due to legal restrictions under British rule. After independence, RBI took steps like establishing committees, providing financing functions, and taking a promotional and advisory role to better support the agricultural and rural cooperative sectors in India. Key functions of RBI included providing short, medium, and long term financing, undertaking promotional activities, supervision of cooperatives, and performing regulatory functions.
A Quantitative Analysis of Indian Banks’ Performance and Efficiency-A Panel R...Saurabh Trivedi
In this report, an attempt has been made to analyze the effects of various internal factors and the effect of ownership structure on the profitability and the efficiency of a bank. The methodology used for the analysis is that of Panel Regression which becomes relevant when there are data for a period of time for each of the units being considered and thus, becomes readily applicable to the present case because for the banks that have been considered in this paper, the data on the relevant variables are available for several years
The document discusses insurance and its types. It defines insurance as a contract between an insurance company and a policyholder, where the insurer agrees to pay a specified amount if a specified event occurs. Insurance is divided into life insurance, which covers human lives, and non-life (general) insurance, which covers other assets. The document then discusses SBI Life Insurance, its joint venture with State Bank of India and Cardif SA, and its various individual and group insurance products.
Money, central banking, and monetary policykamylle galo
Money refers to items generally accepted as payment, including currency and deposits. It functions as a medium of exchange, unit of account, and store of value. The Philippines evolved from barter to commodity money to paper currency. Banks create money by lending deposits and keeping reserves. The central bank (BSP) uses tools like reserve requirements and interest rates to influence the money supply and achieve goals like price stability. International institutions like the IMF and World Bank provide loans and encourage sound monetary policies.
The Reserve Bank of India (RBI) was established in 1949 and took over control of monetary policy and banking supervision from the government. It regulates commercial banks and is responsible for maintaining price stability and economic growth. RBI conducts regular inspections of banks and monitors financial indicators like non-performing assets and capital adequacy ratios. It also promotes financial inclusion through initiatives supporting agriculture, small businesses, and cooperative sectors. RBI oversees various functions related to currency issue, banking supervision, and monetary policy to promote a stable and prosperous Indian economy.
This document provides an overview of monetary policy in India, including:
- The Reserve Bank of India announces monetary policy twice yearly to regulate money supply and interest rates.
- Monetary policy aims to ensure price stability and adequate credit flow to productive sectors of the economy through tools like bank rates, open market operations, and reserve requirements.
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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.
The Reserve Bank of India (RBI) was established in 1935 and nationalized in 1949. It serves several key roles in the Indian economy, including: (1) managing monetary policy and regulating money supply, interest rates, and credit availability; (2) acting as the sole issuer of currency in India; and (3) serving as the banker and debt manager for the Government of India. Additionally, the RBI acts as a banker to other banks in India, regulates financial institutions, promotes rural development, oversees overseas market operations, and manages foreign exchange.
This document is a summer internship report submitted by Ashutosh Puri from IIT Roorkee to the Reserve Bank of India in Lucknow. It discusses the history of banking in India and RBI's role and tools for regulating monetary policy. It also covers the implementation of the base rate system and provides an analysis of past base rate data from various banks compared to changes in the repo rate. Statistical tests were run to analyze variances between bank rates and with the repo rate over the past four years.
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) 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 document provides an overview of the role and functions of the Reserve Bank of India (RBI), which serves as the central bank of India. It establishes that the RBI was established in 1935 according to the Reserve Bank of India Act of 1934. The key responsibilities of the RBI include issuing and managing currency, serving as the banker to the government, supervising commercial banks, and regulating money supply and credit in India to promote monetary stability and economic growth. The RBI utilizes various monetary policy tools and techniques to achieve its objectives of maintaining price stability and controlling expansion of bank credit in India.
A small presentation on RBI ,22 slides divided on the baisis of structural functional and objective wise division of the slides, Most of the references are direclty from the RBI websites ,
The document provides an overview of the history and development of banking in India. It discusses the following key points:
1. Banking in India can be broadly classified into commercial banks, cooperative banks, regional rural banks, and foreign banks. The Reserve Bank of India acts as the central bank.
2. The Indian banking system has undergone significant reforms since the early 1990s to increase efficiency and competition. This included reducing reserve requirements, deregulating interest rates, and allowing more private sector and foreign banks.
3. Reforms have helped improve banks' profitability and diversification of services. However, more reforms are still needed to strengthen the system and ensure banks can meet the challenges of globalization.
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.
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 discusses the role of the Reserve Bank of India (RBI) in the Indian banking system. It provides an overview of the RBI's history and objectives, which include maintaining price stability, promoting economic growth, and achieving financial stability. The RBI performs various functions like issuing currency, supervising banks, controlling foreign exchange, and implementing monetary policy using tools like bank rates, open market operations, and cash reserve ratios. The RBI also plays a promotional role by developing the money market, directing credit to sectors like agriculture and small industries, and improving credit delivery. Overall, the RBI regulates and oversees the banking system to achieve its goals of financial stability and economic development in India.
The Reserve Bank of India (RBI) was established in 1948 and took over control of commercial banks in 1949. RBI has traditional functions like currency issue, banking regulations, and monetary policy. It also has promotional functions to support agriculture, small businesses, and cooperatives. RBI supervises commercial banks through on-site inspections and off-site monitoring to ensure their health and compliance with regulations.
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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) was established in 1935 as India's central bank. It was given statutory powers in 1956 to regulate the issue of banknotes and keep reserves to stabilize the monetary system. The RBI has its headquarters in Mumbai and regional offices across India. It formulates monetary policy and regulates banking institutions. The Securities and Exchange Board of India (SEBI) was established in 1988 and given statutory powers in 1992 to protect investors and regulate the securities market. SEBI has its headquarters in Mumbai and regional offices across India. It implements rules and regulations to promote orderly development of the securities market.
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.
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Role of RBI in growth of Indian economy
1. Role of RBI in growth of Indian economy
1
TERM PAPER
Role of RBI in growth of Indian economy
Course Title: Economics for Engineers
Course Code: ECO310
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2. Role of RBI in growth of Indian economy
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Purpose and
objective
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Content .
Formal
structure and
presentation
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Conclusions /
Recommenda
tions
Clarity and
conciseness:
Referencing
3. Role of RBI in growth of Indian economy
3
Contents
Introduction about RBI
Evolving Role of RBI
Organization Structure of RBI
Acts governing specific functions
Main functions of RBI
Supervisory functions of RBI
Role of RBI in economic development
Concluding Remarks
References & Bibliography
4. Role of RBI in growth of Indian economy
4
Introduction
The Reserve Bank of India (RBI) is India's central banking institution.
It was established on 1 April 1935 during the British Raj in
accordance with the provisions of the Reserve Bank of India Act,
1934 after the recommendation from Hilton-Young commission.
The Reserve Bank of India was nationalized in 1949 under the
Reserve Bank (Transfer of Public Ownership) Act, 1948.
The headquarters of the Reserve Bank of India are located in
Mumbai. RBI has 19 regional offices most of them in state
capitals and 9 sub-offices.
It’s present Governor is Raghuram Rajan.
The basic functions of the Reserve Bank of India are to regulate
the issue of Bank notes and the 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
.(From the Preamble of the Reserve Bank of India Act, 1934)
Evolving Role of RBI
The Reserve Bank, established through the Reserve Bank of India Act,
1934 commenced its operations in 1935. It draws its powers and
responsibilities through other legislations also such as the Banking
Regulation Act, 1949. The RBI has over the years been responding to
changing economic circumstances and these organizational
developments have been documented in a recent Report on Currency
5. Role of RBI in growth of Indian economy
5
and Finance for the year 2004-05, the theme of which was “The
Evolution of Central Banking in India”. Today, I would like to highlight
some recent developments and discuss certain issues of contemporary
relevance relating to the evolving role of RBI.
First, compared with several countries which introduced rapid
reforms in central banking law and governance in the last about two
decades, the Indian experience reflects an evolution or adaptation of
central banking to new economic realities. These changes were
brought about both through some legislative measures and changes in
operating procedures.
Second, this evolution has inter alia contributed to imparting some
autonomy to the central bank, de facto, particularly in the areas
of monetary management and financial regulation.
Third, in sharp contrast to the situation before 1991, since then, apart
from a transparent communications policy and a broad based
consultative approach to policy making, Governors’ speeches and
appearances on the electronic media and the press have been
substantial, having significant influence on markets and opinions. In
the process, the RBI has gained reputational bonus and public
credibility.
Fourth, thanks to related developments in the last 15 years, financial
and external sectors in India have also become relatively more efficient
and resilient.
Fifth, while the effectiveness of monetary policy has improved
significantly to meet the evolving demands, some constraints are
persisting, which impact the choice and effectiveness of our policy
framework.
6. Role of RBI in growth of Indian economy
6
In reviewing the evolving role of RBI, it is necessary to distinguish
between an exclusive monetary authority and a generic central bank,
which performs not only monetary functions, but also other functions,
in particular, banking supervision. A recent survey by the Bank for
International Settlements (BIS) has shown that over sixty per cent of
central banks across developed and developing countries have banking
supervisor’s role exercised by a central bank. India has adopted a
middle path. Banking Supervision continues to be with RBI, but it
has been accorded a distinct semi-independent status. A Board for
Financial Supervision (BFS), a Committee of the Central Board of RBI,
was set up in 1994 and meets at least once a month to guide and
oversee the RBI's supervisory functions. The BFS includes four
independent members drawn from the Central Board of Directors
of RBI with relevant professional background and experience.
While it is true that globally the general tendency recently has been to
stress the independence or autonomy of central banks in general and
monetary management in particular, this has been brought about by
different countries in a variety of means: constitutional changes, legal
amendments, treaty, obligations, policy reorientation or by changes in
practices, procedures and overall environment of public policy.
Evolution, thus, does not exclude legislative changes to meet the
challenges of globalization and new economic realities, though in India
most changes have thus far been effected within the basic structure of
the original legislation in terms of mandate, governance procedures
and instruments. A notable legislative measure in the recent past
(The Reserve Bank of India Amendment Act, 2006) nevertheless
relates to greater flexibility to RBI in regard to cash reserve
7. Role of RBI in growth of Indian economy
7
requirements, deployment of forex reserves, and clarity in regulation
over money, forex and government securities markets.
The independence of a central bank sometimes is rigidly associated
with a single objective, such as price stability. But, in practice, there are
many instances of dual or multiple objectives with equal or different
weights and there are many cases of hierarchy of objectives for a
central bank. In the overall context of its policy and operations, the RBI
in practice is subject to the current legal framework and operates as
a monetary authority with multiple objectives and multiple functions
assigned to it.
Within such a mandate, efforts are made to (a) articulate the hierarchy
of objectives in a given context; (b) impart transparency through
enhanced communication, emphasize participative nature of
decision making in its activities, including monetary management,
through advisory committees; and (c) move towards greater
autonomy in operations relating to monetary policy while ensuring
harmony in macro policies in coordination with the government.
ORGANIZATION STRUCTURE
8. Role of RBI in growth of Indian economy
8
The Reserve Bank's affairs are governed by a central board of
directors . The board is appointed by the Government of India in
keeping with the Reserve Bank of India Act.
Central Board of Directors consist of 20 members. It is
constituted as follows-
a) One Governor
b) Four Deputy Governors
c) Fifteen Directors
Local Boards:
9. Role of RBI in growth of Indian economy
9
One each for the four regions of the country in Mumbai,
Calcutta, Chennai and New Delhi consist of five members each &
appointed by the Central Government for a term of four years.
Acts governing specific functions
Public Debt Act, 1944 /Government Securities Act (Proposed) :
Governs government debt market
Securities Contract (Regulation) Act, 1956: Regulates
government securities market
Indian Coinage Act, 1906: Governs currency and coins
Foreign Exchange Regulation Act, 1973/Foreign Exchange
Management Act, 1999: Governs trade and foreign exchange
market
Payment and Settlement Systems Act, 2007: Provides for
regulation and supervision of payment systems in India
Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970/1980: Relates to nationalization of banks
Main Functions of the Reserve Bank
1) Monetary authority
2) Issuer of currency
3) Banker, Agent and Financial Advisor to the government
4) Banker to the Banks
10. Role of RBI in growth of Indian economy
10
5) Regulation and supervision of the banking and financial
system
6) Management of Foreign Exchange
7) Regulation and Supervision of the Payment and Settlement
Systems
8) Developmental role
Monetary Authority
The main objectives of monetary policy are:
Maintaining price stability
Ensuring adequate flow of credit to the productive sectors of
the economy to support economic growth
Financial stability
RBI formulates, implements and monitors the monetary
policy
Issuer of Currency
The Reserve Bank is the nation’s sole note issuing authority .
Along with the Government of India, RBI is responsible for
the design and production and overall management of the
nation’s currency , with the goal of ensuring an adequate
supply of clean and genuine notes
The Reserve Bank also makes sure there is an adequate
supply of coins, produced by the government and also
destroys currency and coins not fit for circulation.
11. Role of RBI in growth of Indian economy
11
It brings uniformity to note issue and keeps the public faith
in the paper currency alive .
Banker, Debt Manager & financial advisor to Government
It keeps the banking accounts of the government.
It advances short-term loans to the government and raises
loans from the public. It manages public debt.
It purchases and sells through bills and currencies on behalf
to the government.
It receives and makes payment on behalf of the government.
It advises the government on economic matters like deficit
financing price stability, management of public debts. etc.
Banker to the Banks
Enabling smooth, swift clearing and settlement of interbank
obligations.
Providing an efficient means of funds transfer for banks.
Enabling banks to maintain their accounts with RBI for purpose of
statutory reserve requirements and maintain transaction
balances.
Acting as lender of the last resort.
Regulation of the Banking & financial System
As the regulator and supervisor of the banking system, the
Reserve Bank protects the interests of depositors, ensures a
framework for orderly development and conduct of banking
operations .
12. Role of RBI in growth of Indian economy
12
RBI’s objectives are to maintain public confidence in the
system, protect depositors' interest and provide cost-effective
banking services to the public.
RBI prescribes broad parameters of banking operations within
which the country’s banking and financial system functions .
Management of foreign exchange
RBI regulates transactions related to the external sector and
facilitates the development of the foreign exchange market.
RBI buys and sells foreign currency to maintain the exchange
rate of Indian Rupee v/s foreign currencies like dollar, euro
etc.
The RBI is the custodian of the country’s foreign exchange
reserves, i.e ., it is vested with the responsibility of managing
the investment and utilization of the reserves in the most
advantageous manner .
Managing the foreign currency assets and gold reserves of
the country .
Regulator and Supervisor of Payment and Settlement Systems
The Payment and Settlement Systems Act of 2007 (PSS Act)
gives the Reserve Bank oversight authority, including
regulation and supervision, for the payment and settlement
systems in the country .
In this role Reserve Bank focuses on the development and
functioning of safe , secure and efficient payment and
settlement mechanisms.
Credit control function
13. Role of RBI in growth of Indian economy
13
In modern times credit control is considered as the most
crucial and important functional of a Reserve Bank.
The Reserve Bank regulates and controls the volume and
direction of credit by using quantitative and qualitative
controls .
Quantitative controls include the bank rate policy, the open
market operations, and the variable reserve ratio .
Qualitative or selective credit control, on the other hand
includes rationing of credit, margin requirements, direct
action, moral suasion publicity, etc.
Developmental Role
This role includes the development of the quality of banking
system in India and ensuring that credit is available to the
productive sectors of the economy .
RBI performs a wide range of promotional functions to
support national objectives.
It also includes establishing institutions designed to build the
country’s financial infrastructure . E.g .: NABARD, IDBI etc.
Expanding access to affordable financial services and
promoting financial education and literacy .
Supervisory Functions of RBI
Granting license to banks & controlling the opening of new
branches
Bank Inspection
Control over Non-Bank Financial Institutions (NFBI): The Non-
Bank Financial Institutions are not influenced by the working
14. Role of RBI in growth of Indian economy
14
of a monitory policy . RBI has a right to issue directives to
the NBFIs from time to time regarding their functioning .
Implementation of the Deposit Insurance Scheme: In order to
protect the deposits of small depositors, RBI work to
implement the Deposit Insurance Scheme in case of a bank
failure . (For bank deposits below 1 Lakh.)
Role of RBI in economic development
Development of banking system
Development of financial institutions
Development of backward areas
Economic stability
Economic growth
Proper interest rate structure
Miscellaneous
15. Role of RBI in growth of Indian economy
15
Concluding Remarks
To conclude, the role of RBI has been redefined through gradual
evolution and adaptation, along with some statutory changes, and not
through any radical restructuring. Further, while assessing the
autonomy of the RBI, one should recognise that RBI is not a pure
monetary authority but is responsible for several other functions also,
as a central bank. The developments in the recent past lead one to
the conclusion that, de facto, there has been enhancement of the
autonomy of the RBI.
As regards monetary policy framework, the objectives remained the
same but the framework has been changed from time to time in
agradual fashion in response to the evolving circumstances.
Contextually, there are three important issues in the conduct of
monetary policy viz., the assessment of potential output, the
measurement of unemployment and appropriate measure of inflation.
While the policy tries to cope with these issues, a combination of
instruments is necessarily used in a flexible manner to meet these
complexities. Every effort has been made to improve the transmission
channels especially through the financial markets, and through
regulatory and institutional reforms. In addition, there are some
constraints in the conduct of monetary policy, in particular, the
fiscal impact, predominant public ownership, prevalence of
administered interest rate, etc. While these challenges and dilemmas
persist in the Indian context, every effort is made
16. Role of RBI in growth of Indian economy
16
References & Bibliography
Reserve Bank of India. (2006). Report on Currency and Finance, 2004-
05.
Chandavarkar, A. (2005). “Towards an Independent Federal Reserve
Bank of India : A Political Economy Agenda for Reconstitution”.
Economic and Political Weekly, August 27.
Hansda, Sanjay and Patha Ray (2006). “Employment and Poverty in
India during the 1990s: Is There a Diverging Trend?” Economic and
Political Weekly, Vol. 41, No. 27 and 28, July 08 - July 21.
Rangarajan, C. (1997), “Dimensions of Monetary Policy’, Fifty Years of
Central Banking: Governors Speak”, Reserve Bank of India, Mumbai
Reddy, Y. V. (2001). Autonomy of the Central Bank: Changing Contours
in India, speech delivered at Indian Institute of Management, Indore.
Reddy, Y. V. (2002). Lectures on Economic and Financial Sector Reforms
in India, Oxford University Press, New Delhi.
Websites:
WWW.HINDUSTANBUSINESSLINE.COM
WWW.RBI.ORG.IN
WWW.CIA.GOV
WWW.NRIREALITYNEWS.COM