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    Reserve Bank of India: Presented By: Shilendra Kumar MD - Tabish Raza

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    Md Tabish Raza
    The Reserve Bank of India (RBI) was established in 1935 according to the provisions of the RBI Act of 1934. It was originally privately owned but was nationalized in 1949. RBI has its central office in Mumbai and 22 regional offices. As India's central bank, RBI formulates and implements monetary policy, regulates and supervises the financial system, manages foreign exchange and currency, acts as a bank for the government and other banks, and promotes financial institutions. All of RBI's functions, whether monetary, regulatory, or promotional, are significant for the Indian economy.

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    Reserve Bank of India: Presented By: Shilendra Kumar MD - Tabish Raza

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    Md Tabish Raza
    328 views12 pages
    The Reserve Bank of India (RBI) was established in 1935 according to the provisions of the RBI Act of 1934. It was originally privately owned but was nationalized in 1949. RBI has its central office in Mumbai and 22 regional offices. As India's central bank, RBI formulates and implements monetary policy, regulates and supervises the financial system, manages foreign exchange and currency, acts as a bank for the government and other banks, and promotes financial institutions. All of RBI's functions, whether monetary, regulatory, or promotional, are significant for the Indian economy.

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    RBI

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    The Reserve Bank of India (RBI) was established in 1935 according to the provisions of the RBI Act of 1934. It was originally privately owned but was nationalized in 1949. RBI has its central office in Mumbai and 22 regional offices. As India's central bank, RBI formulates and implements monetary policy, regulates and supervises the financial system, manages foreign exchange and currency, acts as a bank for the government and other banks, and promotes financial institutions. All of RBI's functions, whether monetary, regulatory, or promotional, are significant for the Indian economy.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    328 views12 pages

    Reserve Bank of India: Presented By: Shilendra Kumar MD - Tabish Raza

    Uploaded by

    Md Tabish Raza
    The Reserve Bank of India (RBI) was established in 1935 according to the provisions of the RBI Act of 1934. It was originally privately owned but was nationalized in 1949. RBI has its central office in Mumbai and 22 regional offices. As India's central bank, RBI formulates and implements monetary policy, regulates and supervises the financial system, manages foreign exchange and currency, acts as a bank for the government and other banks, and promotes financial institutions. All of RBI's functions, whether monetary, regulatory, or promotional, are significant for the Indian economy.

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    R.B.

    I
    Reserve Bank Of India

    Presented by:
    Shilendra Kumar
    Md.Tabish Raza
    Establishment
    • Established on 1st April 1935 in accordance with the
    provisions of the RBI Act 1934 on the basis of
    recommendations of the Hilton Young Commission.
    • RBI Central office was in Kolkata, until it was
    moved to Mumbai in 1937. RBI has 22 regional
    offices.
    • Originally privately owned, but after
    nationalization in 1949, RBI is fully owned by GOI.
    RBI : Governing Body
    • RBI’s affairs are governed by a Central
    Board of Directors appointed by the GOI.
    Central Board of Directors

    Official Directors Non-Official Directors


    - Full time directors - 10 directors
    from
    - Governor various fields
    - 4 Deputy governors - 1 govt. official
    - 4 directors from local boards
    Main Functions
    The Reserve Bank of India Act of 1934 entrust
    all the important functions of a central bank to
    the RBI.
    Monitory Authority :
    • RBI formulates, implements & supervises the
    monitory policy of the country to maintain
    price stability & ensure adequate flow of credit.
    • RBI is the controller of credit i.e. it has the
    power to influence the volume of credit created
    by banks in India through various instruments.
    Functions…
    Regulator & Supervisor of the financial system :
    • Provides broad parameters for banking
    operations within which the country’s banking
    & financial system functions.
    • For supervising financial system, RBI formed
    the Board of Financial Supervision (BFS) in
    1994.
    • BFS mainly supervises commercial banks, FIs
    & NBFCs.
    • BFS’s main concerns are…
    – Restructuring the system of bank inspections.
    – Strengthening the role of statutory auditors.
    – Legal issues in bank frauds, etc.
    Functions…
    Managing Foreign Exchange :
    • Manages the foreign exchange of the
    country i.e. maintains the exchange rate of
    Rupee against other currencies.
    • RBI also acts as the custodian of India’s
    reserve of international currencies.
    • Aim is to facilitate external trade &
    payments and promote orderly
    development & maintenance of foreign
    exchange market in India.
    Functions…
    Issuer of currency :
    • Under section 22 of the RBI Act, the bank
    has the sole right to issue bank notes of all
    denominations.
    • Issues & exchanges or destroys currency &
    coins not fit for circulation.
    • RBI has a separate Issue Dept. which is
    entrusted with the issue of currency notes.
    • Aims to give the public adequate supply of
    currency notes & coins of good quality.
    Functions…
    Banker to government :
    • Acts as a government banker, agent &
    adviser for the central bank as well as for
    all state govts. (except Jammu & Kashmir)
    • RBI has to keep cash balances of the govt.
    as deposits, receive and make payments on
    behalf of the govt.
    • It also provides loans and advances to state
    govts and local authorities.
    Functions…
    Banker’s bank & lender of last resorts :
    • All scheduled banks have to maintain cash
    reserves i.e CRR equal to 3% of their
    aggregate deposit liabilities.
    • The schedule banks can borrow money
    from RBI on the basis of the eligible
    securities in times of need & urgency.
    Functions…
    Promotional functions :
    • RBI has directly or indirectly set up
    financial institutions like Deposit Insurance
    Corporation, UTI, IDBI, Agricultural
    Refinance Corporation of India, Co-
    operative credit movements, etc.
    • This was with a view of promoting saving
    habits, eliminating money lenders,
    mobilizing savings, providing industrial &
    agricultural loans.
    Conclusion
    • All the functions of RBI, monitory, non
    monitory, supervisory or promotional are
    equally significant in context of the Indian
    economy.
    • Under the Banking Regulation Act, RBI has
    been given a wide range of powers.
    • Under the supervision & inspection of RBI,
    the working of banks has greatly improved.
    • RBI has been responsible for strong
    financial support to industrial &
    agricultural development in the country.
    THANK YOU

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