Group member

Names: Clinton Dsoza(04) Sagar Mishra(22) Dennis Pinto Sourab Parab Shahrukh shyyad Shahrukh shiakh

INTRODUCTION
It is the apex bank of India. Started functioning from 1st April 1935. RBI plays an important part in the development strategy of the government. Its headquarter is in Mumbai. It has 22 branch offices at most state capitals and at a few major cities in India Present governor Duvvuri subbarao.

 It was set up on the recommendations of the Hilton Young Commission It was started as share-holders bank with a paid up capital of 5 crores. Commenced Operations on 1st April 1935 as per The Reserve Bank of India Act, 1934 (II of 1934) and Nationalized on 1st Jan 1949. Initially it was located in Kolkata. It moved to Mumbai in 1937.

RBI Central Office Building,

Kolkata(Old) Mumbai(Current)

Central Office Departments

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."

objectives
To manage the monetary and credit system of the country. * To stabilizes internal and external value of rupee. * For balanced and systematic development of banking in the country.

objectives
The development of organized money market in the country. *Proper arrangement of agriculture finance. Proper arrangement of industrial finance. * To maintain balance between the demand and supply of currency.

objectives
For proper management of public debts. * To establish monetary relations with other countries of the world and international financial institutions. *Centralization of cash reserves of commercial banks.

Main function of Reserve Bank of India

Main functions of RBI

Issuer of Currency Banker and Debt Manager to Government Banker to Banks Manager of Foreign Exchange Control of credit

Banker/ Debt Manager to Government

Managing the governments banking transactions maintains its accounts, receives money into and makes payments out of these accounts.

Banker to Banks
Transfer funds and settle inter-bank transactions. All banks operating in the country have accounts with the Reserve Bank.

Manager of Foreign Exchange

plays a key role in the regulation and development of the foreign exchange market Main 3 function
Regulating transactions related to the external sector . Ensuring smooth conduct Managing the foreign currency assets and gold reserves of the country

Main functions of RBI

Provision of Agriculture Credit Industrial finance Training Facilities in Banking

Main functions of RBI

It cannot work in the field of trade & industry it Cannot grant loan directly to customer It cannot give loan on security of movable property

MONETARY AUTHORITY

Monetary policy
Monetary policy is essentially a programmer of action undertaken by central bank, to control and regulate the supply of money with the public and flow of credit with a view of achieving predetermined macroeconomic goals.
-Macroeconomics-Theory & policy-D.N.Dwivedi-Tata Magraw Hill comp,

Monetary Policy
Monitory Policy refers to the policy of the central bank to control money supply, credit and inflation in economy to ensure an adequate flow of credit to productive sectors Monetary policy is a part of overall economic policy It control credit creation.

Objective: A. Maintain price stability and ensuring adequate flow of credit in the economy. B. Rapid Economic Growth C. Equal Income Distribution D. Full Employment E. Balance of Payments (BOP) Equilibrium

What R.B.I does???????.

Instruments of RBI's monetary policy

Quantitative

Qualitative

QUANTITATIVE OR GENERAL METHODS

BANK RATE(9.00%) OPEN MARKET OPERATIONS REPO RATES(8.00%) AND REVERSE REPO RATES( 7.00%) CASH RESERVE RATIO(4.75%) STATUTORY LIQUIDITY RATIO(24.0%)

QUALITATIVE / SELECTIVE MEASURES

CEILING ON CREDIT MARGIN REQUIREMENTS DISCRIMINATORY RATES OF INTEREST DIRECTIVES

Issuer of Currency
issues and exchanges or destroys currencies. the goal of ensuring an adequate supply of clean and genuine notes.

System of issuing currency in India

Before 1957 Fully Backing System

Rs.200 crore
Rs.200 crore

After 1957

Minimum Reserve System

115 crore 85 crore 200 crore

other securities

Developmental Role

Developmental Role
To develop the quality of banking system in India. Performs a wide range of promotional functions to support national objectives. To establish financial institutions of national importance Deposit Insurance and Credit Guarantee Corporation (1962)

Contd..
Unit Trust of India (1964) Industrial Development Bank of India (1964) NABARD (1982)

National Housing Bank (1989)

RBI: Actions in Times of Crisis

The Reserve Banks willingness to use conventional and unconventional measures help buffer the nation from severe crisis. Here are some examples of our responses during the 2008-9 global financial crisis:

Carefully considered and calibrated reduction of interest rates until situation has stabilised

Cont..
Establishment of a refinancing window and special-purpose vehicle for non-banking financial companies Creation of a rupee-dollar swap facility to manage short-term funding requirements Loosened restrictions on access to foreign currency

Expansion of funding sources for umbrella financial institutions to keep credit flowing to small businesses, housing and export businesses.

Currently members of central board