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1. What is this  

 which
has !
$ on our Life?
2. What are the Main Functions of RBI ?
3. How it Controls The Economy & Our Life?
4. How we can join the RBI ?
‡ RBI- The Reserve Bank of India.
It¶s the Central Bank of India
Estd. Under RBI Act. 1934 , on 1st April 1935
First Governor was Sir Osborne Smith.
First Indian Governor was Dr. C.Deshmukh.
Present Governor D. Subbarao
- From where this concept came into the
mind of Indian policy Makers ?
- In year 1926 John Hilton Young
Commission / The Royal Commission on
Currency & Finance Recommended for
establishment of RBI.
‡ How It was Started ?
-RBI started with initial Capital 5 crore.
divided into shares.
-Nationalisation on 1st jan. 1949.
-Since 1949 RBI Owned by GOI and
Regulated by RBI Act 1934.
‡ RBI Central Office ±Mumbai
‡ The Central Office of the Reserve Bank was
initially established in Calcutta but was
permanently moved to Mumbai in 1937.
The Central Office is where the Governor
sits and where policies are formulated.
‡ Local Board Office ± DKCM
‡ Delhi, Kolkata, Chennai, Mumbai
‡ 15 Regional Offices ± in State Capital or
Major Cities.
‡ 5 Sub-Offices.
‡ The ë 
   
 describes the basic functions of the
Reserve Bank as :
³«.to regulate the issue of the Bank Notes
and keeping of the 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. ³
Central Board
‡ 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.
‡ Appointed/nominated for a period of four
years.
°  
‡ Full-time : Governor and not more than four Deputy
Governors
± °  
‡ Nominated by Government: ten Directors from
various fields and one government Official
‡ Others: four Directors - one each from four local
boards
‡ Functions : General superintendence and direction of the
Bank's affairs
Local Boards
‡ 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
‡ 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.
‡ Financial Supervision
‡ The Reserve Bank of India performs this function under
the guidance of the Board for Financial Supervision (BFS).
The Board was constituted in November 1994 as a
committee of the Central Board of Directors of the Reserve
Bank of India.
‡ Objective
‡ Primary objective of BFS is to undertake consolidated
supervision of the financial sector comprising commercial
banks, financial institutions and non-banking finance
companies.
‡ The Board is constituted by co-opting four
Directors from the Central Board as members for a
term of two years and is chaired by the Governor.
The Deputy Governors of the Reserve Bank are
ex-officio members. One Deputy Governor,
usually, the Deputy Governor in charge of banking
regulation and supervision, is nominated as the
Vice-Chairman of the Board.
‡ BFS meetings
‡ The Board is required to meet normally once every month.
It considers inspection reports and other supervisory issues
placed before it by the supervisory departments.
‡ BFS through the Audit Sub-Committee also aims at
upgrading the quality of the statutory audit and internal
audit functions in banks and financial institutions. The
audit sub-committee includes Deputy Governor as the
chairman and two Directors of the Central Board as
members.
‡ The BFS oversees the functioning of
Department of Banking Supervision (DBS),
Department of Non-Banking Supervision
(DNBS) and Financial Institutions Division
(FID) and gives directions on the regulatory
and supervisory issues.
‡ Functions
‡ Some of the initiatives taken by BFS include:
‡ restructuring of the system of bank inspections
‡ introduction of off-site surveillance,
‡ strengthening of the role of statutory auditors and
strengthening of the internal defences of
supervised institutions
.Current Focus
‡ supervision of financial institutions
‡ consolidated accounting
‡ legal issues in bank frauds
‡ assessments of non-performing assets and
‡ supervisory rating model for banks.
‡ The v  of the Reserve Bank
of India (RBI) are:
‡ v  
  
RBI formulates, implements and monitors the
monetary policy to maintain price stability
and ensuring adequate flow of credit to
productive sectors.
Policy Rates
‡ CRR- 5.00 percent
‡ SLR- 24.00 percent
‡ Bank Rate- 6.00 percent
‡ Repo Rate- 4.75 percent
‡ Reverse Repo Rate- 3.25 percent
‡       

 :
‡ RBI prescribes broad parameters of banking
operations within which the country¶s banking and
financial system functions to maintain public
confidence in the system, protect depositors¶
interest and provide cost-effective banking
services to the public
‡ v   

RBI manages the Foreign Exchange
Management Act, 1999 to facilitate external
trade and payment and promote orderly
development and maintenance of foreign
exchange market in India
‡    
RBI issues and exchanges or destroys
currency and coins not fit for circulation to
give the public adequate quantity of
supplies of currency notes and coins and in
good quality.
‡    
RBI performs a wide range of promotional functions
to support national objectives.
‡    
‡   
!   :
‡ performs merchant banking function for the
central and the state governments; also acts as
their banker.
‡   
 : maintains banking
accounts of all scheduled banks.
Departments of RBI
DBOD :-
‡   °   
  "°#is responsible for
development of banking policies, regulation and
monitoring the commercial banks under the
provisions contained in Banking Regulation Act
and the Reserve Bank of India Act and other
related statutes.
$
‡     $
"$#
is responsible for the computerization of the
various departments and offices of the RBI, design
and development of projects for use of banks and
financial institutions and monitoring the progress
of technology in the banks
%
‡   %  "%# is
responsible for supervision of the Indian Banking
system that includes the commercial banks and
select financial institutions. It undertakes
scheduled inspections of banks, deals with frauds
and complaints and supervises the implementation
of regulations.
%
‡   %  
"%# is responsible for developing NBFCs
sector as an integrated and healthy part of the
financial system and thereby afford indirect
protection to the interests of their depositors.
vë
‡ v    is responsible for
formulation, monitoring and implementation of
the annual monetary and credit policy.

   v   is
responsible for managing public debt and issuing
new loans on behalf of the central and state
governments on the basis of the Reserve Bank of
India Act
°
‡        
°   "°# is responsible for
management of exchange rate of the Indian rupee
and management and investment of foreign
exchange reserves of RBI.
‡   !   
 "!# is responsible for acting as
banker to the banks and governments and
administering public debts of the central and the
state governments. It also maintains RBI¶s internal
accounts and compiles its weekly statement of
affairs and balance sheets. These functions are
carried out in the local offices through the Public
Accounts Department (ë), Deposit Accounts
Department (), Public Debts Department
(ë°).
‡     
ë"ë# is responsible for studying
the basic problems facing the Indian
economy, preparing monetary and credit
aggregates, Balance of Payment, external
and internal debt statistics, flow-of-fund and
financial savings and renders
advice/assistance in shaping of monetary,
banking and financial policies.
‡   %     
&     "%&%# is
responsible for providing high quality
statistical service by way of collection,
compilation, analysis and dissemination of
data as per requirement of the Reserve Bank
of India and the Government Statistical
System.
‡   ë %  
%  "ë%%# is responsible for formulation,
regulation and supervision of the Payment and
Settlement System, laying down standards and
implementation of the Core Principles relating to
payment systems.
‡   
  "#is
responsible for facilitating external trade and
promotes orderly development of foreign
exchange market in India.
‡   & v is
responsible for attending to the core statutory
function of note and coin issue and currency
management. This involves forecasting the
demand for fresh banknotes and coins, placing the
indent with four printing presses and mints,
receiving supplies against those indents and
distributing them through a wide network of
currency chests, repositories and small coin
depots.
‡ ±    "±#is
responsible for regulation and supervision
of primary co-operative banks outside the
federal rural credit structure supervised by
NABARD and function primarily in the
urban areas.
‡  ë&    
" ë&#is responsible for formulating
policies relating to rural credit and monitors
timely and adequate flow of credit to the
rural population for agricultural activities
and rural employment programs.
Training Establishments
‡ Has six training establishments
‡ Three, namely, College of Agricultural Banking,
Bankers Training College and Reserve Bank of
India Staff College are part of the Reserve Bank
‡ Others are autonomous, such as, National Institute
for Bank Management, Indira Gandhi Institute for
Development Research (IGIDR), Institute for
Development and Research in Banking
Technology (IDRBT)
‡ Subsidiaries
‡ Fully owned:
‡ National Housing Bank(NHB),
‡ Deposit Insurance and Credit Guarantee
Corporation of India(DICGC),
‡ Bharatiya Reserve Bank Note Mudran Private
Limited(BRBNMPL)
‡ Majority stake: National Bank for Agriculture and
Rural Development(NABARD
Vipin Meena
MIBA-1

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