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.

Introduction

Brief History

Subsidiaries

Financial

Education

Functions

CONTENTSContents

Publication

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: www.rbi.org.in

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 18th May.]

•RBI have Offices in 22

States.

RBI LOGO

The image is used to identify the organization Reserve Bank of India, a subject of public interest

RBI central office

First RBI Building 1935, Kolkata

RBI Central Office Building,Mumbai

RBI ORGANAISATION STRUCTURE

Central Board of Directors by the Numbers

Official Directors� 1 Governor� 4 Deputy Governors, at a maximumNon-Official Directors� 4 directors—nominated by the Central Government to representeach local board� 10 directors nominated by the Central Government with expertisein 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) 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) 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 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”.

Issuer of Currency

Bankers to Government

Manager Of Foreign

Exchange

Monetary Authority

Banker to Banks

Regulator And

Supervisor Of Financial

System

Developmental Role

FUNCTIONS OF RBI

Regulator and supervisor of payment and settlement

systems

FORMULATE MONETRY POLICY

Objectives: Maintain price

stability, Ensuring adequate flow of

credit in the economy & Financial

stability.

what RBI does……

It formulates, implements and monitors

of the monetary policy.

Instruments: Direct & Indirect

instruments.

Direct Instruments

CRR• Cash Reserve Ratio

SLR • Statutory Liquidity Ratio

Indirect InstrumentsLiquidity

Adjustment Facilities

(LAF)

Repo/Reverse Repo Rate

Open Market

Operations (OMO)

Bank Rate (BR)

Market Stabilisation

Scheme (MSS)

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.

Banker to central government(section 20, 21)

Banker to state government on agreement (Section 21A)

Issuer of CurrencyObjective: 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.

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

Maintains banking accounts

of all scheduled

banks.

Custodian of cash

reserve of commercial banks

It clears, transfer the transaction

. Acts as central clearing house

Acting as a

lender of last

resort.

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 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

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

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.

Subsidiaries

NHB• National Housing

Bank

DICGI

• Deposit Insurance & Credit Guarantee of India

BRBNMPL

• Bhartiya Reserve Bank Note Mudran Private Limited

NABARD• National Bank For

Agriculture and Rural Development

RBI had also set up some training

institutions

Zonal training center

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 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

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