Transcript
PRESENTATION ON RESERVE BANK OF INDIA
SUBMITTED BY:Amit SharmaClass- PGDM- A
SUBMITTED TO:Mr. R.C Chatwal
INTRODUCTION…
It is central bank of indiaEstablished in 1 April 1935 under the RESERVE
BANK OF INDIA ACT Its headquarters is in mumbai(maharashtra) Its present governor is Duvvuri subbarao It has 22 regional offices,most of them in state
capitalswebsite: http://www.rbi.org
BRIEF HISTORY…
It was set on the recommendations of Hilton young commission.
It was started as share-holders bank with the paid up capital of 5 crores
Initially it was located in kolkata It moved to mumbai in 1937 Initially it was privately owned
BRIEF HISTORY…
Since nationalization in 1949,the reserve bank is fully owned by the 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” (August,1943 to june 30,1949) On june 27,2006 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…
Sir Osborne A.Smith
April 1 ,1935 to June 30 ,1937
Sir Chintaman D.DeshmukhAugust 11 ,1943 to June 30 ,1949
GOVERNORS…
Dr. Y.V. ReddySeptember 6 ,2003 to September 5 ,2008
Dr. D. SubbaraoSeptember 2008 onwards
PREAMBLE
The preamble of reserve bank of india describes the basic functions of 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 country to its advantage”
ORGANISATION OF RBI
Central board Local board
ceNTRAL BOARD
The reserve bank’s affairs are governed by central board of directors.The board is appointed the govt. of india as per Reserve Bank of India Act
Appointed/nominated for a period of four years
Constitution:Full time:governor and not more than
four deputy governors
CENTRAL BOARD
Non-Official DirectorsNominated by government:ten directors from various fields and one government official
Others: four directors – one each from four local boards
Function: general superintendence and direction of bank’s affairs
RBI Headquarters’ Delhi entrance with the yakshini sculpture depicting ‘prosperity through agriculture’
Local board
One each for the four regions of country in Mumbai,Culcatta,Chennai,New Delhi
Membership: Consist of five members each Appointed by the Central Government For a term of four years
Local board
Functions: to advice the central board on local matters and to represent territorial and economic interests of local cooperatives and indigeneous banks.
To perform such other functions as delegated by central board from time to time
Functions of rbi…
Monetary Authority Regulator &supervisor of financial
system Manager of foreign exchange Issuer of currency Developmental role
Formulate monetary policy
Objective: Maintain price stability and ensuring adequate flow of credit in the economy.
What R.B.I does. It formulates ,implements and
monitors the monetary policy instruments: qualitative and
quantitative.
quantitative measures
BANK RATE also called discount rate.it also called repo rate.
OPEN MARKET OPERATIONS buying and selling of govt. securities
VARIABLE RESERVE RATIO It includes C.R.R and S.L.R
qualitative measures
Margin requirements
Moral suasion
Rationing of credit
regulate the financial system
objective: to maintain public confidence in the system, protect depositors interest & and provide cost effective banking services to the public
What R.B.I does prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
The R.B.I performs this function under the guidance for financial supervision(BFS)
Lender of last resort
Issue of currency
Objective: to ensure adequate quantity of supplies of currency notes and coins of good quality
What R.B.I does….Issues new currency and destroy currency and notes not fit for circulation.
It has to keep in forms of gold and foreign securities as per statutory rules against notes and coins issued.
Development role
Objective: To develop the quality of banking system in india
What R.B.I does…. Perform a wide range of promotional
functions to support national objectives. To establish financial institution of
national importance, for eg:NABARD, IDBI etc
subsidiaries
Fully owned:National Housing Bank(NHB), Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bhartiya Reserve bank Note Mudran Private Limited(BRBNMPL)
Major stakes: National Bank For Agriculture and Rural Development(NABARD)
Reserve bank of india has recently disvested its stake in state bank of india to the government of india
R.B.I had also set up some training institutions
Related functions
Banker to government: performs all banking functions for the central and state govt. and also act as their banker
Banker to banks: Maintain banking accounts of all scheduled banks
R.B.I also regulates the opening/installation of ATM
Fresh currency notes forATMs are supplied by RBI RBI regulates the opening of branches by banks. It issues guidelines and directives for commercial
banks
Role of r.b.i in economic development
Development of banking system Development of financial institution Development of backward areas Economic stability Economic growth Proper interest rate structure
Banking sector reforms…
Statutory liquidity ratio(SLR) Cash reserve ratio(CSR) Interest rate slabs Prudential norms Capital Adequacy Norms Freedom of operation Supervision of commercial banks Recovery of debts.
THANK YOU
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