1. RBI By Soumik Mukherjee PGDM,Sem-2 Reg No- 4018

2. Preamble 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.”

4. Started functioning from April 1, 1935

5. It was nationalized in January , 1, 1949

6. Share capital Rs.5.00 Cr of Rs.100.00 each

7. Government held nominal shares of Rs.2.22 lac

9. It has monopoly of note issuing

10. It is not a profit center

11. It will not compete with the commercial banks

12. It is a Bank of Issue

13. It is a Banker to the government

14. Custodians of Nations Credit

17. Constitution:

18. Official Directors

19. Full-time : Governor and not more than four Deputy Governors

20. Non-Official Directors

21. Nominated by Government: ten Directors from various fields and one government Official

22. Others: four Directors - one each from four local boardsFunctions : General superintendence and direction of the Bank's affairs

23. CB CONTINUED….. Dr. Y.V.Reddy – Governor Dr. Rakesh Mohan – Deputy Governor Shri. V.Leeladhar – Deputy Governor Smt.Shyamala Gopinath – Deputy Governor Smt. Usha Thorat – Deputy Governor

24. Local Boards One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi Membership: consist of five members each appointed by the Central Government for a term of four years Functions :To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

25. Powers and responsibilities of RBI in respect of regulation of banks The Reserve Bank of India has been entrusted with the responsibility under the Banking Regulation Act, 1949 to regulate and supervise banks' activities in India and their branches abroad. While the regulatory provisions of this Act prescribe the policy framework to be followed by banks, the supervisory framework provides the mechanism to ensure banks' compliance with the policy prescription.

27. Supervision of overseas branches of Indian banks

28. Uniform guidelines on Write-off/ compromise settlements

29. Checklist for Inspecting Officers

30. Study of large value bank frauds

31. Nostro Accounts- Reconciliation

32. Non- SLR Investments

33. Transparency and Disclosure

35. Foreign Securities

36. Rupee Coins

37. Government of India Rupee Securities

38. The Bills of Exchange and Promissory notes payable in India, which are eligible for purchase by the bank under Sec22 of RBI act

39. Minimum Reserve System since 1957Rs.200 Crore of which Rs.115 crore in gold

41. Monetary policy is a part of overall economic policy

42. To accelerate economic development to raise national income and standard of living

44. Quantitative Controls – to regulate the volume of total credit

46. Bank Rate - 6% (with effectfrom30th April, 2003 )

47. Open Market Operations – Buying and Selling of Securities

48. CRR-25.0%

49. SLR-7.5%

50. REPO – 9% (at present)

51. Rev REPO - 6% (at present)

52. Qualitative-