Beruflich Dokumente
Kultur Dokumente
- Rohit Bhabal
Table of Content
1 RBI Roadmap
4 Role of RBI
5 Functions of RBI
12 Example of CRR
13 Example of SLR
14 CRR+SLR
1937
1949
M. Narasimham (3 May 1977 to 30 November 1977) , Mr. I.G. Patel (1 December 1977 to
15 September 1982) also had significant impact as a RBI governors.
After Mr. I.G. Patel Mr. Manmohan sigh who is an Indian
economist and great politician, joined RBI (16 September
1982 to 14 January 1985), who later became our prime
minister in 2004 and served India till 2014.
After Manmohan Singh Mr. Amitav Ghosh joined RBI who is an Indian banker. He served
for 20 days from 15 January to 4 February 1985, as the 16th governor of the RBI.
After Mr. Amitav Ghosh Mr. R. N. Malhotra Mr. S. Venkitaramanan who is IAS joined
joined RBI in 4 February 1985 till 22 RBI in 22 December 1990 till 21 December
December 1990 1992
Bimal Jalan (22 November 19976 to September 2003) had a huge impact on RBI operation.
RBI Recent Governors
Inflation control
Banker to bank
Development role
Issue of currency
Functions of RBI
• It has to keep in forms of gold and foreign securities as per statutory rules against
1 notes
• Issues new currency and destroys currency and coins not fit for circulation
2
• To ensure adequate quantity of supplies of currency notes and coins of good
3 quality
• Developmental Role
8
Role of RBI as a Monetary Authority
It Performs all banking function for the central and the state
governments and also acts as their banker excepting that of Jammu and
Kashmir. It makes loans and advances to the States and local authorities.
It acts as adviser to the Government on all monetary and banking
matters. Banker to the Government
Role of RBI as a Banker’s Bank
Every Bank has to obtain a Banking License from RBI to conduct banking
business in India (As per Sec 22 of Banking regulation Act). Various
Banks have been given the license like: Universal Banks Payments Bank
Small Finance Banks, IDFC Vodafone M- pesa Equitas Holdings, Bandhan
Bank Fino PayTech Utkarsh Micro Finance etc.
Quantitative Measures of Credit Control
Under Monetary Policy
The current CRR is 4%. If RBI cuts CRR in its next monetary policy
review then it will mean banks will be left with more money to lend or
to invest. So, more money can be released into the economy which
may spur economic growth.
Example of SLR
reserve requirements such as SLR make banks relatively safe (as a certain
portion of their deposits are always redeemable) but at the same time restrict
their capacity to lend. To that extent, lowering of reserve requirement increases
the resources available with a bank to lend and helps control inflation and
propels growth.
Example of Repo Rate
If repo rate is 5% , and bank takes loan of Rs 1000 from RBI , they will pay
interest of Rs 50 to RBI.
So, higher the repo rate higher the cost of short-term money and vice versa.
Higher repo rate may slowdown the growth of the economy.
If the repo rate is low then banks can charge lower interest rates on the loan
taken by us.
The RBI's rate cuts does not necessarily mean that the borrowers benefit
immediately. The landing bank has to reduce its Base Lending rate for EMI to
decrease.
These rate cuts will not have any impact on fixed rate home loans or fixed rate
consumer loans. The rate of interest is fixed with respect to fixed loans.
The existing bank customers (who have taken loans) can see either their Loan
tenures or EMIs coming down. By default the banks reduce the loan tenure instead
of loan EMI. That means your monthly EMI installment amount remains the same.
The rate cut will make a substantial difference if the remaining loan term/tenure is
very long.