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Vaishnav Kumar
Agenda
Preamble Brief history Governors The key role of the RBI Monetary authority Regulator and supervisor of the financial system Manager of foreign exchange Issuer of currency Developmental role Instruments of credit control Objective and reasons for establishment of RBI Subsidiaries
Central Bank
It is a bank of banker
-- Samuelson
Bank which has monopoly over note issue -- Vera Smith Central bank is the governments bank -- Sayers
Commercial Bank
-Public Sector Bank
Co-operative Bank
-State Co-op bank
Organizational Structure
Governor Deputy Governor
Executive Directors
Principal Chief General Manager Chief General Managers General Managers Deputy General Managers Asstt. General Managers Managers Asstt Managers
Support staff
PREAMBLE
The preamble of the Reserve Bank of India describe the basic functions of the Reserve Bank as
to regulate the issue of Bank Notes and keeping of reserve with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage
BRIEF HISTORY
(1 OF 2)
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 Crs It was established on 1st of April 1935 Initially it was located in Kolkata It moved to Mumbai in the year 1937 Initially it was privately owned It was the 1st bank to be Nationalized in 1949 It has 22 regional offices, most of them in state capitals
BRIEF HISTORY
(2 OF 2)
Since nationalization in 1949, the Reserve Bank is fully owned by the Government of India Its First governor was Sir Osborne A.Smith(1st April 1935 to 30th June 1937) The First Indian Governor was Sir Chintaman D.Deshmukh(11th August 1943 to 30th June 1949) On 27th June 2006, the Union Government of India reconstituted the Central Board of Directors of the Reserve Bank of India(RBI) with 13 Members, including Azim Premji and Kumar Mangalam Birla
GOVERNORS
(1 of 2)
GOVERNORS
(2 of 2)
Regulator and supervisor of the financial system Manager of Exchange control Issuer of currency Banker to the Government Bank to banks: maintains banking accounts of the scheduled banks
Monetary Authority
Formulates, implements and monitors the monetary policy Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors
Prescribes broad parameters of banking operations within which the country's banking and financial system functions Objective: maintain public confidence in the system, protect depositors interest and provide cost-effective banking services to the public
Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India
Issuer of Currency
Issues and exchanges or destroys currency and coins not fit for circulation Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality
Developmental Role
Related Functions
Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker Banker to banks: maintains banking accounts of all scheduled banks
Quantitative
Qualitative
Selective Credit Control Rationing of Credit Moral Persuasion Direct Action
Bank Rate Open Market Operation(OMO) Change in Cash Reserve Ratio (CRR) Statutory Liquidity Ratio(SLR) Repo and Reverse Repo Ratio
SUBSIDIARIES..!
Fully owned
National Housing bank (NHB) Deposit Insurance and Credit Guarantee Corporation of India (DICGC) Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
Major stakes
National Bank For Agriculture and Rural Development (N ABARD) The reserve Bank of India has recently divested stake in State Bank of India to the government of India
Related Functions
RBI also regulates the opening / installation of ATM RBI regulates the opening of branches by banks It ensures that all the N.B.F.C follow the KYC Guidelines Fresh currency notes for ATM are supplied by RBI Banker to the Government: Performs all banking function for the central and state governments and also act as their banker The reserve bank of India also regulates the trade of gold. Currently 17 banks are involved in the trade of gold in India RBI has invited applications from more banks for direct import of gold to curb illegal trade in gold and increase competition in the market It issues guidelines and directions for the commercial banks
Conclusion
Central bank plays important role in achieving economic growth of a developing country It promotes economic growth with stability It helps in attaining full employment balance of payment disequilibrium and in stabilizing exchange rate RBI is an autonomous body promoted by the government of India and is headquartered at Mumbai RBI is an autonomous body promoted by the government of India and is headquartered at Mumbai treasury foreign exchange movements and is also the primary regulator for banking and nonbanking financial institutions The RBI operates a number of government mints that produce currency and coins
RBI Websites
RBI Bulletin..www.bulletin.rbi.org.in RBI Annual Report....www.annualreport.rbi.org.in Weekly Statistical Supplement...www.wss.rbi.org.in Monetary and Credit Policy.www.cpolicy.rbi.org.in RBI Notifications.www.notifics.rbi.org.in RBI Press Release.www.pr.rbi.org.in RBI Speecheswww.speeches.rbi.org.in Monetary and credit Information Reviewwww.mcir.rbi.org.in Report on Trend and Progress of Banking..www.bankreport.rbi.org.in
Sources
www.rbi.org.in www.financialexpress.com
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