SUBMITTED BY

VIKAS THAKUR (3274)

RAHUL BABA
DEEKSHA SOOD

SUBMITTED
TO :
PROF. DINESH

HISTORY

1935-51
1951-67
1967-81
1981-97

URIJIT PATEL

MANAGEMENT
The general superintendence and direction
of the RBI is entrusted with the 21-member
Central Board of Directors: theGovernor, 4
Deputy Governors, 2Finance Ministry
representatives, 10 government-nominated
directors to represent important elements
from India's economy, and 4 directors to
represent local boards headquartered at
Mumbai, Kolkata, Chennai and New Delhi.
Each of these local boards consists of 5
members who represent regional interests,
and the interests of co-operative and

OBJECTIVE
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.
* For the development of organized money market in the
country.
* For proper arrangement of agriculture finance.
* For proper arrangement of industrial finance.
* For proper management of public debts.
* To establish monetary relations with other countries of
the world and international financial institutions.
* For centralization of cash reserves of commercial banks.
* To maintain balance between the demand and supply of
currency.

FUNCTION
1. Issue of Bank Notes:
2. Banker to Government:
3. Custodian of Cash Reserves of
Commercial Banks:
4. Custodian of Countrys Foreign
Currency Reserves:
5. Lender of Last Resort:
6. Central Clearance and Accounts
Settlement:
7. Controller of Credit:

CREDIT CONTROL AND CREDIT

CREATION
I.Quantitative Method:
(i)Bank Rate:
(ii)Open Market Operations:
(iii)Variable Reserve Ratios:
II.Qualitative Method:
(i)Margin Requirements:
(ii)Credit Rationing:
(iii)Regulation of Consumer Credit:
(iv)Moral Suasion:

Key indicators

Inflation
6%
Bank rate
7%
CRR
4%
SLR
21 %
Repo rate
6.50 %
Reverse repo rate
6%
MSRF
7%

MONITORY POLICY
Monetary policyis the process by which
the monetaryauthority of a country
controls the supply of money, often
targeting an inflation rate or interest rate to
ensure price stability and general trust in
the currency.

Instruments of Monetary policy

Open Market Operations
Cash Reserve Ratio
Statutory Liquidity Ratio
Bank Rate Policy
Credit Ceiling
Credit Authorization Scheme
Moral Suasion
Repo Rate and Reverse Repo Rate

FISCAL POLICY
Fiscal policyis the means by which a government adjusts its spending levels
andtax ratesto monitor and influence a nation's economy. It is the sister strategy
tomonetary policythrough which acentral bankinfluences a nation's
money supply. These two policies are used in various combinations to direct a
country's economic goals. Here we look athow fiscal policy works, how it must be
monitored and how its implementation may affect different people in an economy.
Before theGreat Depression, which lasted from Sept. 4, 1929 to the late 1930s or
early 1940s, the government's approach to the economy waslaissez-faire.
Following World War II, it was determined that the government had to take a
proactive role in the economy to regulate unemployment,business cycles,inflation
and the cost of money. By using a mix of monetary and fiscal policies (depending
on the political orientations and the philosophies of those in power at a particular
time, one policy may dominate over another), governments are able to control
economic phenomena.

CONCLUSION
Every authority concerned with Co-operative sector will have to play
its part in ensuring that the aspirations of the Urban Cooperative
Banking sector are nurtured in a manner that depositor interest and
the public interest at large is protected. The role of RBI could, thus,
be to frame a regulatory and supervisory regime that is multilayered to capture the heterogeneity of the sector and implement
policies that would provide adequate elbowroom for the sector to
grow in a non-disruptive manner. The State and Central
Governments could recognize that the UCBs are not just cooperative societies but they are essentially banking entities whose
management structure is that of a co-operative. They should
recognize the systemic impact that inefficient functioning of the
entities in the sector could have. Consequently, it would be in the
interest of the sector if they support, facilitate and empower the RBI
to put in place mechanisms and systems that would enable these
UCBs to perform their banking functions in a manner that is in the
overall interest of the depositor and the public at large.