This presentation summarizes the main functions of the Reserve Bank of India (RBI). It discusses that RBI was established in 1935 as India's central bank. The key functions of RBI include issuing currency, acting as the government's bank and banker to banks, regulating the country's financial system, managing foreign exchange, implementing monetary policy, and promoting financial inclusion through various developmental initiatives. The presentation provides details on RBI's role in each of these functional areas.

1. 1WELCOMEThis presentation has been prepared by Mr. UNNI B T UNDER THE GUIDENCE OF SHRI R R KAMBLE, AGM, PDO as a part of his project work under the RBI Young Scholar Award Scheme.FUNCTIONS OF R B I by UNNI B T

2. FUNCTIONS OFRESERVE BANK OF INDIA2FUNCTIONS OF R B I by UNNI B T

3. INTRODUCTIONIt is the central bank of IndiaThe Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 19343FUNCTIONS OF R B I by UNNI B T

4. *RBI was set up on recommendation of Hilton young commission*It was started as a shareholder’s bank with the paid up capital of Rupees five crores*Initially it was privately owned*Initially its headquarters was located in Kolkata*It was moved to Mumbai in 1937*It was nationalized in 19494FUNCTIONS OF R B I by UNNI B T

5. Map showing head office regional offices and branches5FUNCTIONS OF R B I by UNNI B T

6. 6FUNCTIONS OF R B I by UNNI B T

7. MAIN FUNCTIONS OFRESERVE BANK OF INDIA7MANAGER OF THE FOREIGN EXCHANGEMONETERY AUTHORITY

8. DEVOLOPMENTAL ROLES

9. ECONIMIC RESRARCH AND DATA COLLECTIONISSUE OF CURRENCY

10. REGULATION AND SUPERVISION OF FINANCIAL SYSTEM BANKER TO GOVERNMENT

11. BANKER TO BANKSFUNCTIONS OF R B I by UNNI B T

12. The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." 8FUNCTIONS OF R B I by UNNI B T

13. ISSUER OF CURRENCYIssues and exchanges currency and coins for circulation.

14. Collect the coins and notes fit for circulation

15. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.9FUNCTIONS OF R B I by UNNI B T

16. COINS AND CURRENCY NOTES IN CIRCULATION10FUNCTIONS OF R B I by UNNI B T

17. Reserve bank is the sole authority to issue currency in India

18. RBI can issue currency of any denomination 2,5,10,20,50,100,500,1000,5000,and10000. (Denomination of 5000&10000 are not issued at present)RESERVE BANK OF INDIAIt provides exchange facility

19. Issue department distributes the coins and currency 11FUNCTIONS OF R B I by UNNI B T

20. 12HOW CURRENCY REACH USPublicIssue officePress/mintCurrency chest/government treasuriesOffice of issue departmentIts agencies, the branches of state bank of India and its associate banks.Distribution of currency and coinsstate Co-operative Banks and scheduled urban Co-operative banksBranches of public sector banks, scheduled private sector banksGovernment treasuries and sub treasuriesFUNCTIONS OF R B I by UNNI B T

21. REGULATOR AND SUPERVISOR OF THE FINANCIAL SYSTEM*Prescribes parameters of banking operations *Objective: maintain public confidence *protect depositors' interest *provide cost effective banking13FUNCTIONS OF R B I by UNNI B T

22. Reserve bank of India regulates and supervises Commercial banksNon banking financial companies All India financial institutions Primary (urban) cooperative banks14FUNCTIONS OF R B I by UNNI B T

23. BANKING OMBUDSMANRBI appoints banking ombudsmanThe Banking Ombudsman does not charge any feefor filing and resolving customers’ complaintsThere are 15 banking ombudsman.Mostly in state capitalsAll Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme. complaint should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents15FUNCTIONS OF R B I by UNNI B T

24. MANAGER OFTHEFOREIGNEXCHANGE ObjectiveTo facilitate external trade and payment

25. promote orderly development of foreign exchange market in India. 16FUNCTIONS OF R B I by UNNI B T

26. 17What R.B.I does….. R B I acts as a custodian/Manages the Foreign Exchange Management Act, 1999RBI buys and sells foreign currency in case of exigencyFUNCTIONS OF R B I by UNNI B T

27. BANKER TO THE GOVERNMENTBanker to the central government

28. Banker to state governments

29. Advises central and state governments in better cash management. Encourages Government securities market18FUNCTIONS OF R B I by UNNI B T

30. 19R B IMANAGES PUBLIC DEBTRECEIVE AND MAKE PAYMENTS ON BEHALF OF GOVERNMENTTRANSACT GOVERNMENT BUSINESSMANAGES ACCOUNTS OF GOVERNMENT DEPARTMENTSCENTRAL ACCOUNT SECTION AT NAGPUR CONSOLIDATES GOVERNMENTS BANKING TRANSACTIONSOVERSEES AUCTION OF TREASURY BILLSMAKE WAYS AND MEANS ADVANCES TO THE GOVERNMENTSFUNCTIONS OF R B I by UNNI B T

31. BANKERS' BANK AND LENDER OF THE LAST RESORT20NON-INTEREST EARNING CURRENT ACCOUNTS

32. REMITTANCE FACILITIES

33. LOANS AND ADVANCES