Functions of RBI

Information about Functions of RBI

Published on December 4, 2012

Author: nitish.1424



RESERVE BANK OF INDIA: RESERVE BANK OF INDIA Prepared by : NITISH KUMAR ARYA, RBI Young Scholar 2010-11 Under the guidance of Shree SUNDAR MURTHI Deputy General Manager Issue department, RBI Nagpur. PowerPoint Presentation: Contents Contents Publication INTRODUCTION: INTRODUCTION It is the central bank of India. Established on 1 April 1935 under the RESERVE BANK OF INDIA ACT, 1934. Its headquarter is in Mumbai(Maharashtra). Its present governor is Dr. D. Subbarao. website: PowerPoint Presentation: OFFICES & BRANCHES Central Office, Mumbai. Four Regional offices (Mumbai, Delhi, Chennai, Kolkata) 24 Sub offices/Branches [The Reserve Bank of India (RBI) opened its sub-office at Agartala on 18 th May.] RBI have Offices in 22 States. RBI LOGO: RBI LOGO The image is used to identify the organization Reserve Bank of India, a subject of public interest RBI central office: RBI central office First RBI Building 1935, Kolkata RBI Central Office Building, Mumbai PowerPoint Presentation: RBI ORGANAISATION STRUCTURE PowerPoint Presentation: Central Board of Directors by the Numbers Official Directors � 1 Governor � 4 Deputy Governors, at a maximum Non-Official Directors � 4 directors—nominated by the Central Government to represent each local board � 10 directors nominated by the Central Government with expertise in various segments of the economy � 1 representative of the Central Government � 6 meetings—at a minimum—each year � 1 meeting—at a minimum—each quarter BRIEF HISTORY (1/2): BRIEF HISTORY (1/2) 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 Corers . Initially it was locates in Kolkata. It moved in Mumbai in 1937. Initially it was private owned. BRIEF HISTORY (2/2): BRIEF HISTORY (2/2) Since nationalisation in 1949, the reserve bank is fully owned by GOVERNMENT OF INDIA. Its first governor was SIR. OSBORNE A. SMITH April 1,1935 to June 30, 1937. The first Indian governor was “ SIR CHINTAMAN D. DESHMUKH”, (August11,1943 to June30,1949 ). RBI’s first governor Sir Osborne A. Smith April 1, 1935 to June 30, 1937 First Indian governor SIR C. D. DESHMUKH”, August11,1943 to June30,1949 PREAMBLE: PREAMBLE 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 the monetary stability in India and generally to operate the currency and credit system of the country to its advantages”. PowerPoint Presentation: FUNCTIONS OF RBI FORMULATE MONETRY POLICY: FORMULATE MONETRY POLICY Objectives: Maintain price stability, Ensuring adequate flow of credit in the economy & Financial stability. what RBI does …… I t formulates, implements and monitors of the monetary policy. Instruments: Direct & Indirect instruments. Direct Instruments: Direct Instruments Indirect Instruments: Indirect Instruments PowerPoint Presentation: Banker and Debt Manager to Governments Maintains Central Govt.’s accounts, receives money into and makes payments out of these accounts. Facilitates transfer of Govt. funds. Banker to State Governments based on agreement. Manages the governments’ domestic debt. Develops market for govt. securities. Issuer of Currency: Issuer of Currency Objective: To ensure adequate quantity of supplies of currency notes and coins of good quality. What RBI does….. Issues new currency and destroys currency and coins not fit for circulation. It has to keep in forms of gold and foreign securities as per rules against notes & coins issued. PowerPoint Presentation: Presses RBI Offices Public Chest branches NOTES 4 Mints 4 mint-linked RBI Offices Chest branches & RBI Offices Public COINS Flow of Notes & Coins Banker to Banks: Banker to Banks Manager of Foreign Exchange: Manager of Foreign Exchange Objective: to facilities external trade and payment and promote orderly development and maintenance of foreign exchange market in India. What RBI does……. It acts as a custodian and manages the foreign exchange. RBI buys and sells foreign currencies to maintain the exchange ate of Indian rupee v/s foreign currencies like that us dollar, euro, pound sterling and Japanese yen. Managing the foreign currency assets and gold reserves of the country. Regulate & supervise the financial system: Regulate & supervise the financial system Objective: To maintain public confidence in the system, protect depositor interest & provide cost effective banking service to the public. What RBI does ….. Prescribes broad parameters of banking operations within which the Country's banking & financials System functions. The RBI performs this function under the guidance board for financial supervision. Regulator and supervisor of payment and settlement systems: Regulator and supervisor of payment and settlement systems The payment and settlement systems Act of 2007 (PSS Act) gives the Reserve Bank oversight authority, including regulation and supervision, for the payment and settlement system in country. OUR TOOLS : Retail payment system – NEFT , ECS, EFT Large value system – RTGS, Security Settlement system, foreign Exchange Clearing , Department of payment and settlement system. DEVELOPMENTAL ROLE: DEVELOPMENTAL ROLE Objective : to develop the quality of banking system in India. What RBI does….. Performs a wide range of promotional function to support national objectives. To establish financial institutions of national importance, for e.g. : UTI , NABARD, IDBI, IGIDR etc. PowerPoint Presentation: Subsidiaries PowerPoint Presentation: RBI had also set up some training institutions Z onal training center Financial Inclusion and Literacy: Financial Inclusion and Literacy RBI Young Scholar Scheme. Comic books on financial matters, conducting quiz program. Outreach programs in villages. Advertisement. Films on features of genuine currency notes. Publications of RBI: Publications of RBI ANNUAL - Annual report -Trade and progress of banking in India -Report on currency and finance HALF-YEARLY - Financial stability report -Macroeconomic and monetary development report -Report on foreign exchange reserves QUARTERLY - Macroeconomic and monetary development MONTHLY WEEKLY - Weekly statistical supplement-extract -Weekly statistical supplement OCCASIONAL LECTURE PowerPoint Presentation: Prepared by : NITISH KUMAR ARYA, RBI Young Scholar 2010-11 Under the guidance of Shree SUNDAR MURTHI, Deputy General Manager Issue department, RBI Nagpur. Thank you

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