Presentation - Rbi

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Reserve Bank of India

It is a central bank of the country. It acts as a guide, regulator, controller and promoter of the financial system. RBI was established in 1935.

Reserve Bank of India

The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. Though originally privately owned, RBI has been fully owned by the Government of India since nationalization in 1949. Duvvuri Subbarao who succeeded Y. Venugopal Reddy on September 2, 2008 is the current Governor of RBI. 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.

Departments of RBI
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6. 7. 8. 9. 10.

Issue Department Banking Department Banking development Department Department of Banking operations Department of Non Banking companies Department of legal affairs Exchange control Department Department of agriculture credit Department of industrial finance Economics Department

Departments of RBI
11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Department of research and statistics Inspection Department Department of planning and re-organization RBI services board Department of Accounts and expenditure Department of supervision Control Department External investment and operations Press relations Department Industrial and export credit

Role and functions of RBI


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5. 6. 7. 8. 9. 10.

A Currency authority Banker to the Govt. Advisor to the Govt. Bankers Bank Lender of the last resort Supervision of the Banks Controller of money and credit Foreign exchange control and management Monetary data publication Promotional Functions i) Promotion of commercial banks ii) Promotion of co-operative banks iii) Promotion of agriculture and rural credit Iv) Promotion of industrial finance

Prohibitory functions of RBI


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RBI can not provide any direct financial Assistance to any industry, trade or business It can not purchase its on share. It can not purchase shares of any commercial and industrial undertaking. It can not purchase any immovable property. It can not give loans on the security of shares and property.

Monetary policy
Monetary policy refers to the use of official instruments under the control of the central bank to regulate the availability, cost and use of money and credit with the aim of achieving optimum levels of output and employment, price stability, balance of payments equilibrium or any other goals set by the state.

The measures/ Techniques of credit control


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Quantitative credit control Selective credit control

1. Quantitative credit control


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Bank rate Cash reserve ratio Statutory liquidity ratio Open market operations

2.Selective credit control


The regulation of credit for specific purpose is termed as selective credit control. Some of the selective measures of RBI:1. Directions 2. Rationing 3. Margin requirement 4. Moral suasion

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