economics final pro. 2sem-2.docx

7/24/2019 economics final pro. 2sem-2.docx

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2014-15

FINAL

DRAFTECONOMICS

RBI AND EVALUATION OF MONETARY

POLICY

Submitted to: Submitted by:

Dr. Mitali Tiwari Shobhit Mani Gopal

Assistant Professor (economics) roll no.:!" (#rdsem)

Dr.$am Manohar %ohiya &ational %aw 'niersity%uc*now sec+,

INDEX.....page


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RBI ANDEVALUATION OF MONETARY POLICY

Acknowledgement .. (!

Re"ea#c$ p#o%lem ....... (&!

O%'ect)e .... (&!

Re"ea#c$ Met$odolog* ... (&!

Int#od+cton ............................................ (&!

St#+ct+#e, Management and F+ncton (-!

Depa#tment" o R/I ....... (-!

F+ncton" o R/I (0!

Stat+to#* L1+dt* Rato (SLR! . (2!

Ca"$ Re"e#)e Rato (CRR! ..... (34!

Impo#tant te#m" +"ed ....(34!

Moneta#* 5olc* ......... (36! C+##ent Moneta#* 5olc* ..(3!

S$o#t note on Indan nancal code . (3&!

Concl+"on ....(3-!

Ree#ence" (37!

ACKNOWLEDGEMENT

I take t$" oppo#t+nt* to e8p#e"" m* p#oo+nd g#att+de and deep #ega#d" to m* g+de (D#.

Mtal Twa# A"""tant 5#oe""o#! o# $" e8empla#* g+dance, monto#ng and con"tant

enco+#agement t$#o+g$o+t t$e co+#"e o t$" t$e"". T$e %le""ng, $elp and g+dance g)en %*

$m tme to tme "$all ca##* me a long wa* n t$e 'o+#ne* o le on w$c$ I am a%o+t to

em%a#k.

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I wo+ld lke to e8p#e"" m* g#att+de towa#d" m* pa#ent" 9 mem%e#" o D#. Ram Mano$a#

Lo$*a Natonal Law :n)e#"t* o# t$e# knd co;ope#aton and enco+#agement w$c$ $elp

me n completon o t$" p#o'ect.

I wo+ld lke to e8p#e"" m* "pecal g#att+de and t$ank" to all t$o"e people w$o ga)e me

attenton and t$e# n)al+a%le tme.

M* t$ank" and app#ecaton" al"o go to m* #end and cla""mate" n de)elopng t$e "*nop""

and people w$o $a)e wllngl* $elped me o+t wt$ t$e# a%lte".

RESEARCH PROBLEMS:

T$e #e"ea#c$ p#o%lem o)e# $e#e " t$e "t+d* o t$e R./.I and t" moneta#* polce" o# #a"ng

awa#ene"" a%o+t t$e +ncton" o R./.I and t" c+##ent moneta#* polc*.T$" wo+ld %e ac$e)ed %*

#eadng )a#o+" new"pape#", a#tcle" etc.

OBJECTIVE:

O%'ect)e o t$" "t+d* " to anal*"e t$e #ole o R./.I.

St+d* t" c+##ent moneta#* polc*.


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St+d* t$e #ecent Indan Fnancal Code 643-

D"c+""on" on ""+e" t$at a#e #ele)ant to t$" topc.

RESEARCH METHODOLOGY:

Doct#nal met$odolog*@ It " conce#ned wt$ anal*"" o a)ala%le lte#at+#e "o+#ce" on t$e topc and

t $a" %een de)eloped and appled .a#o+" "o+#ce" "+c$ a" %ook", a#tcle", 'o+#nal" and new"pape#

$a)e $elped me o# m* #e"ea#c$.

INTRODUCTION:

T$e Re"e#)e /ank o Inda " t$e natonB" cent#al %ank, %egan to ope#ate on Ap#l 43, 32-. T$e

o%'ect)e %e$nd e"ta%l"$ng t wa" to en"+#e moneta#* "ta%lt* and ope#atng t$e c+##enc* and

c#edt "*"tem o t$e co+nt#*. It" +ncton" a#e moneta#* management, o#egn e8c$ange and #e"e#)e"

management, go)e#nment de%t management, nancal #eg+laton and "+pe#)"on, apa#t #om

c+##enc* management and actng a" %anke# to t$e %ank" and to t$e o)e#nment.

T$e Re"e#)e /ank $a" al"o pla*ed act)e de)elopmental #ole, pa#tc+la#l* o# t$e ag#c+lt+#e and

#+#al "ecto#".

STRUCTURE, MANAGEMENT AND FUNCTION:

T$e Cent#al /oa#d $a" p#ma#* a+t$o#t* o# t$e o)e#"g$t o t$e Re"e#)e /ank. It delegate" "pecc

+ncton" t$#o+g$ t" commttee" and "+%;commttee".

Centra B!ar":Incl+de" t$e o)e#no#, Dep+t* o)e#no#" and a ew D#ecto#" (o #ele)ant local

%oa#d"!.

C!##$ttee !% Centra B!ar": O)e#"ee" t$e c+##ent %+"ne"" o t$e cent#al %ank and t*pcall* meet"

e)e#* week, on =edne"da*". T$e agenda oc+""e" on c+##ent ope#aton", ncl+dng app#o)al o t$e

weekl* "tatement o acco+nt" #elated to t$e I""+e and /ankng Depa#tment".

B!ar" %!r F$nan&$a S'(er)$*$!n: Reg+late" and "+pe#)"e" comme#cal%ank", Non;/ankng

Fnance Compane" (N/FC"!, de)elopment nance n"tt+ton", +#%an co;ope#at)e %ank" andp#ma#* deale#".

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B!ar" %!r Pa+#ent an" Sette#ent S+*te#*: Reg+late" and "+pe#)"e" t$epa*ment and "ettlement

"*"tem".

S'-&!##$ttee* !% t.e Centra B!ar": Incl+de" t$o"e on In"pecton and A+dtSta and /+ldng.

Foc+" o eac$ "+%commttee" on "pecc a#ea" oope#aton".

L!&a B!ar"*: In C$enna, olkata, M+m%a and New Del$, #ep#e"entng t$e co+nt#*>" o+#

#egon". Local %oa#d mem%e#", apponted %* t$e Cent#al o)e#nment o# o+#;*ea# te#m", #ep#e"ent

#egonal and economc nte#e"t" and t$e nte#e"t" o co;ope#at)e and ndgeno+" %ank".

De(art#ent* !% RBI:

T$e"e oc+" on polc* ""+e" n t$e Re"e#)e /ank>" +nctonal a#ea" and nte#nal ope#aton".

Mar/et:

Inte#nal De%t Management Depa#tment

Depa#tment o E8te#nal In)e"tment" and Ope#aton"

Moneta#* 5olc* Depa#tment

Fnancal Ma#ket" Depa#tment

Re0'at$!n, S'(er)$*$!n an" F$nan&$a Sta$$t+:

Depa#tment o /ankng S+pe#)"on Depa#tment o /ankng Ope#aton" and De)elopment

Depa#tment o Non;/ankng S+pe#)"on

:#%an /ank" Depa#tment

R+#al 5lannng and C#edt Depa#tment

Fo#egn E8c$ange Depa#tment

Fnancal Sta%lt* :nt

Re*ear&.:

Depa#tment o Economc and 5olc* Re"ea#c$

Depa#tment o Stat"tc" and Ino#maton Management

Ser)$&e*:

Depa#tment o o)e#nment and /ank Acco+nt"

Depa#tment o C+##enc* Management

Depa#tment o 5a*ment and Settlement S*"tem

C+"tome# Se#)ce Depa#tment

S'((!rt:

5#em"e" Depa#tment

Sec#eta#*>" Depa#tment

Ra'%$a"$a Depa#tment

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In"pecton Depa#tment

Legal Depa#tment


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Act" a" t$e %anke# o comme#cal %ank"

S+pe#)"e" %ank"

Re"e#)e /ank o Inda pe#o#m" )a#o+" +ncton" to manage t$e moneta#* "*"tem o t$e co+nt#*.

T$e"e +ncton" ncl+de@

3. Re"e#)e /ank o Inda +nde# t$e R/I Act, Secton 66 " "olel* #e"pon"%le o# t$e ""+ance o

c+##enc* note" e8cl+dng #+pee one note w$c$ ""+ed %* Fnance Sec#eta#* o t$e

o)e#nment o Inda. R/I #eg+late" t$e ""+ance o t$e note" n Inda manl* to %#ng

condence among people o gen+nene"", 1+alt* and c#ed%lt* o mone* ""+ed %e"de"

%#ngng n +no#mt* n ""+ance o note". D+e to "ngle a+t$o#t* t$e#e " eect)e cont#ol

on low o c#edt n and o+t o t$e ma#ket.

6. R/I act" a" %anke# to comme#cal %ank".. R/I cond+ct" %ankng and nancal ope#aton" o t$e o)e#nment o Inda and ad)"e" on

)a#o+" nancal and economc ""+e". =$le $andlng t$e o)e#nment %+"ne"", R/I

mantan" go)e#nment acco+nt", ad)"e" on moneta#* matte#" ncl+dng nancal a"pect",

%e"de" ca##*ng o+t o)e#nment %+"ne"" a" and w$en #e1+#ed.

&. It p#o)de" nancal accommodaton to coope#at)e %ankng "ecto# o# nancng "pecal

"ecto#" o t$e econom* lke ag#c+lt+#e etc.

-. /ank pe#o#m" t$e +ncton o cont#olle# o e8c$ange )al+e o #+pee )". :S dolla#.

7. A" a g+de and cont#olle# o %ankng and nancal "ecto#, R/I appont" CEO" o /ank" and

p+t t" mem%e#" o t$e /oa#d" o t$e /ank to en"+#e p#ope# o)e#nance and "o+nd %ankng

p#actce".

0. A" a de)elopmental +ncton, R/I p#omote" )a#o+" "pecalGed n"tt+ton". It $a" p#omoted

ID/I (Ind+"t#al De)elopment /ank o Inda!, N/ARD (Natonal /ank o# Ag#c+lt+#e 9

R+#al De)elopment!, Small Ind+"t#al De)elopment /ank o Inda (SID/I!, Depo"t

In"+#ance 9 C#edt +a#antee T#+"t o# Small and Med+m Ente#p#"e" (DI 9 CTSME! H

E8po#t C#edt +a#antee Co#po#aton o Inda (ECC! etc.

. R/I ""+e" moneta#* polc* twce a *ea# to p#o)de g+dance to low o c#edt and "aet*

mea"+#e" to t$e %ankng and nancal "ecto#. It ""+e" %+"* "ea"on polc* n Octo%e# e)e#*

*ea# and "lack "ea"on polc* n Ma*;J+ne. T$" "et" t$e tone o# t$e mone* ma#ket a" well a"

nancal act)te".

2. Fo# good go)e#nance, R/I #e"o#t" to mo#al "+a"on on %ankng and nancal "ecto#.

34. It d""emnate" nancal data on %ankng, econom* and ot$e# a"pect" o moneta#* a"pect".

33. R/I " "ole a+t$o#t* to $andle o)e#all moneta#* and c#edt polc* n t$e co+nt#*.

36. To #eg+late t$e low o c#edt n t$e econom* R/I al"o #e"o#t" to "ellng and p+#c$a"ng o

"$o#t te#m o# e)en long te#m "ec+#te".

3. R/I p#o)de" wa*" and mean"> c#edt aclt* to t$e o)e#nment o Inda and Stateo)e#nment" n o#de# to o)e#come tg$t mone* po"ton %etween pa*ment and #ecept o t$e

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clent. T$e pe#od o "+c$ wa*" and mean"> c#edt " ma8m+m 24 da*" ( mont$"!. S+c$

powe# to lend mone* to go)e#nment" " g)en +nde# "ecton 30 (-! o Re"e#)e /ank o Inda

Act, 32&.

3&. R/I al"o act" a" a lende# o t$e la"t #e"o#t, w$c$ mean" meetng t$e gen+ne nancal

#e1+#ement" o comme#cal %ank".

3-. Management o #a"ng o nance %* t$e o)e#nment and ""+ance o new loan"Had)ance" on

%e$al o t$e o)e#nment o Inda H State o)e#nment " $andled %* t$e 5+%lc De%t Oce

o t$e Re"e#)e /ank o Inda.

37. It #eg+late" t$e c#edt low n t$e ma#ket %* +"ng c#edt cont#ol n"t#+ment" lke %ank #ate,

open ma#ket ope#aton" and powe# to )a#* #e"e#)e #ato" lke ca"$ #e"e#)e #ato (CRR! and

"tat+to#* l1+dt* #ato (SLR!. T$e"e two #ato" a#e mo"t mpo#tant tool" o# mantanng

l1+dt* n t$e nancal "*"tem, pa#tc+la#l* %ankng "*"tem.

30. /ank Rate, CRR and SLR a#e "ome o t$e 1+anttat)e "tep" t$at R/I can take #om tme to

tme to cont#ol low o mone* and to cont#ol nlaton.

Stat't!r+ L$1'$"$t+ Rat$! 2SLR3: Re"e#)e /ank o Inda e8e#c"e" d#ect cont#ol o)e# t$e l1+dt* o t$e %ankng

"*"tem.

R/I " t$e onl* a+t$o#t* to eect c$ange" n t$e l1+dt* po"ton o %ank" %a"ed on

demand and tme la%lte".

A" pe# Secton - (! o t$e /ankng Reg+laton Act, 32&2 demand la%lte"> mean"

t$o"e la%lte" t$at a#e to %e met on demand.

/ank" a#e al"o #e1+#ed to mantan a po#ton o t$e# depo"t la%lte" n t$e o#m o

l1+d a""et" .e. %ond" etc. T$" " called Stat+to#* L1+dt* Rato.

L1+d a""et" to %e mantaned a#e n t$e o#m o ca"$, gold and +nenc+m%e#ed

app#o)ed "ec+#te" a" pe# "ecton 6& o t$e /ankng Reg+laton Act, 32&2.

A" and w$en R/I nc#ea"e" t$e SLR, #ed+ce" t$e +nd" "+ppl* n t$e ma#ket, t$+"

#ed+cng t$e lenda%le #e"o+#ce" wt$ comme#cal %ank". ce )e#"a w$en SLR "

#ed+ced t wll nc#ea"e t$e +nd" wt$ %ank" o# onwa#d lendng.

Ca*. Re*er)e Rat$! 2CRR3:

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/ank" a#e #e1+#ed to depo"t wt$ #e"e#)e %ank o Inda an amo+nt e1+al to t$e

pe#centage o depo"t" wt$ #e"pect)e %ank n t$e #ato p#e"c#%ed %* R/I #om tme

to tme. T$" " called Ca"$ Re"e#)e Rato (CRR!.

T$" " manl* done to p#o)de "ta%lt* to t$e econom*. In "mple wo#d" CRR " t$e

p#opo#ton o +nd" %ank" $a)e to depo"t wt$ t$e Re"e#)e /ank o Inda. It c$ange

#om tme to tme " pa#t o economc polc* to cont#ol nlaton etc. An* c$ange n

CRR pe#centage mean" et$e# nc#ea"ed a)ala%lt* o +nd" wt$ t$e %ank" o#

#ed+ced +nd" a)ala%le n t$e ma#ket.

:nc$anged CRR mean" no addtonal +nd" a)ala%le o# %ank" to lend.

I#(!rtant ter#* '*e":

Ban/ Rate:

It mean" t$e #ate o nte#e"t at w$c$ R/I %+*" o# #ed"co+nt" t$e %ll" o e8c$ange ncl+dng

comme#cal pape#" etc. a" pe#m""%le +nde# R/I Act, 32&. A" pe# t$e need o t$e $o+#, R/I #a"e"

t$e /ank Rate n o#de# to "1+eeGe t$e c#edt e8pan"on w$e#ea" t #ed+ce" t$e /ank Rate w$en t

need" to allow mo#e low o c#edt n t$e econom*.

Re(! Rate:

Repo Rate " t$e #ate at w$c$ %ank" %o##ow #om t$e Re"e#)e /ank o Inda (R/I!. =$en t$e #epo

#ate nc#ea"e", %o##owng #om R/I %ecome" mo#e e8pen")e. I R/I want" to make t mo#e

e8pen")e o# t$e %ank" to %o##ow mone*, t nc#ea"e" t$e #epo #ate "mla#l*, t want" to make t

c$eape# o# %ank" to %o##ow mone* t #ed+ce" t$e #epo #ate.

Re)er*e Re(! Rate:

Re)e#"e #epo #ate mean" t$e #ate o nte#e"t at =$c$ R/I %o##ow" #om t$e %ank". T$e Re"e#)e %ank

+"e" t$" tool w$en t eel" t$e#e " too m+c$ mone* loatng n t$e %ankng "*"tem. An nc#ea"e n

t$e #e)e#"e #epo #ate mean" t$at t$e %ank" wll get a $g$e# #ate o nte#e"t #om R/I. A" a #e"+lt,

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%ank" p#ee# to lend t$e# mone* to R/I w$c$ " alwa*" "ae n"tead o lendng t ot$e#" (people,

compane" etc! w$c$ " alwa*" #"k*.

Repo Rate "gne" t$e #ate at w$c$ l1+dt* " n'ected n t$e %ankng "*"tem %* R/I, w$e#ea"

Re)e#"e Repo #ate "gne" t$e #ate at w$c$ t$e cent#al %ank a%"o#%" l1+dt* #om t$e %ank".

Re)e#"e Repo Rate " lnked to Repo Rate wt$ a de#ence o 3K %etween t$em

Mar0$na Stan"$n0 Fa&$$t+:

T$e Re"e#)e /ank o Inda n t" moneta#* polc* o# 6433;36 nt#od+ced t$e ma#gnal "tandng

aclt* +nde# w$c$ %ank" co+ld %o##ow +nd" #om R/I w$en t$e#e " a con"de#a%le "$o#tall o

l1+dt*. T$" mea"+#e $a" %een nt#od+ced %* R/I to #eg+late "$o#t;te#m a""et la%lt* m"matc$e"

mo#e eect)el*. :nde# t$" aclt*, %ank" can %o##ow +p to 3K o t$e# net demand.

Stat't!r+ L$1'$"$t+ Rat$!:

T$" " t$e pe#centage o depo"t" t$at %ank" m+"t mandato#l* $old n t$e o#m o go)e#nment %ond". SLR %ond"

a#e l1+d a""et" t$at can %e "old at a "$o#t notce to meet an* +ne8pected demand #om depo"to#".

L$1'$"$t+ A"4'*t#ent Fa&$$t+:

:nde# t$" aclt*, %ank" %o##ow #om t$e cent#al %ank %* pledgng go)e#nment "ec+#te". Repo

#ate and Re)e#"e #epo #ate a#e pa#t o t.

Ba*$* P!$nt*:

It " t$e nc#ea"e n nte#e"t #ate" n pe#centage te#m". Fo# n"tance, t$e nte#e"t #ate nc#ea"e" %* -4

%a"" pont" , t$en t mean" t$at nte#e"t #ate $a" %een nc#ea"e %* -4K.

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MONETARY POLICY:

T$e te#m moneta#* "tand" o# mone*. T$+" n "mpled te#m", moneta#* polc* " a polc* w$c$

nl+ence" mone* "+ppl* n t$e econom*.

It " t$e c#edt cont#ol mea"+#e" adopted %* t$e cent#al %ank o a co+nt#*. J!.n*!n dene" moneta#*

polc* a" polc* emplo*ng cent#al %ank>" cont#ol o t$e "+ppl* o mone* a" an n"t#+ment o#

ac$e)ng t$e o%'ect)e" o gene#al economc polc*.

G565 S.a7 dene" t an* con"co+" acton +nde#taken %* t$e moneta#* a+t$o#te" to c$ange t$e

1+alt*, a)ala%lt* o# co"to mone*.

Moneta#* polc* " one o t$e wa*" t$at t$e go)e#nment attempt" to cont#ol t$e econom*. I t$e

mone* "+ppl* g#ow" too a"t, t$e #ate o nlaton wll nc#ea"e t$e g#owt$ o t$e mone* "+ppl* "

"lowed too m+c$, t$en economc g#owt$ ma* al"o "low.

T$e goal " to ac$e)e "pecc economc o%'ect)e", "+c$ a" low and "ta%le nlaton and p#omotng

g#owt$.

O4e&t$)e* !% M!netar+ P!$&+:

3. En"+#e" p#ce "ta%lt*

6. Cont#ol" e8pan"on o %ank c#edt

. 5#omoton and de)elopment o 8ed n)e"tment"

&. Cont#ol" n)ento#* %+ld +p" %* "ome nd)d+al"

-. E8po#t p#omoton

7. En"+#e" p#ope# ood p#oc+#ement ope#aton".

0. :no#m c#edt d"t#%+ton among )a#o+" "ecto#" o t$e econom* and "ocet*

Te&.n$1'e* U*e" + RBI t! Mana0e an" C!ntr! M!netar+ S+*te#:

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3. Open ma#ket Ope#aton"

6. /ank Rate Mec$an"m

. D"c#etona#* cont#ol o #enance and #ed"co+ntng

&. Inte#e"t Rate (Repo #ate and #e)e#"e #epo #ate! cont#ol

-. CRR and SLR mec$an"m7. C#edt #atonng

0. C#edt #epo#tng

. Select)e C#edt Cont#ol w$en need a#"e"

2. C#edt #epo#tng "*"tem to R/I

34. In)ento#* and c#edt no#m"

33. Mo#al "+a"on

CURRENT MONETARY POLICY:

In t" T$#d /;mont$l* 'o+#nal o moneta#* polc*, t$e Re"e#)e /ank o Inda (R/I! mantaned t"

nte#e"t #ate" +nc$anged. Ea#le#, J+ne 6, 643-, n t" "econd %mont$l* #e)ew o t$e moneta#*

polc*, t$e R/I c+t t" #epo #ate %* 6- %a"" pont" to 0.6- pe#cent ate# lowe#ng %* t$e "ame amo+nt

n Jan+a#* and Ma#c$. /+t t$" tme, t$e R/I $a" not made c$ange" n polc* #ate". T$e #e"e#)e #ato

" 0.6- pe#cent, t$e #e)e#"e #ato " 7.6- pe#cent and ca"$ #e"e#)e #ato (CRR! and "tat+to#* l1+dt*

#ato (SLR! to & pe# cent and 63.- pe# pe#cent, #e"pect)el*.

R/I "tated t$at t wa" app#op#ate o# cent#al %ank to mantan t" ke* polc* #ate on t$e noton t$at

nlaton n J+ne wa" t#an"to#*, a" well a" to monto# t$e po""%le acton %* t$e :S Fede#al Re"e#)e

and o+tcome" o t$e mon"oon. T$e R/I wll lkel* ea"e t" moneta#* polc* +#t$e# wt$ t$e am o

"+ppo#tng c#edt g#owt$ n an en)#onment o low nlaton.

On #d A+g+"t, t$e Inda Meteo#ologcal Depa#tment (IMD! mantaned t" p#edcton t$at t$e co+nt#*

wll #ece)e 36.4K le"" #anall (w$c$ " tec$ncall* c$a#acte#Ged a" a d#o+g$t! w$en compa#ed

wt$ long;te#m a)e#age" o# t$" *ea#>" mon"oon "ea"on. T$" "+gge"t" to me t$at nlaton #"k"

#eman to t$e +p"de, pa#tc+la#l* a" a)o+#a%le %a"e eect" "ta#t to dec#ea"e #om Septem%e#. T$at

"ad, I %ele)e t$e Indan go)e#nment to contn+e to enact #eo#m" n t$e ag#c+lt+#al "ecto# w$le

al"o takng acton" to en"+#e a "tead* "+ppl* o ood n t$e dome"tc ma#ket, w$c$ "$o+ld $elp to

cap an* "gncant +p"de nlatona#* p#e""+#e" on ood tem", and co+ld potentall* o"et an*

+na)o+#a%le %a"e eect".

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T.e %!!7$n0 &.an0e* .a)e een ta/en $n t.$* (!$&+:

Re(! Rate: :nc$anged at 0.6- K . Re)er*e Re(! Rate 'n"er t.e LAF:Stand" ad'+"ted 7.6-K

Ca*. Re*er)e Rat$! 2CRR3:ept +nc$anged at &.4 K

Mar0$na *tan"$n0 %a&$$t+ 2MSF3 rate: Stand" .6-K

Ban/ Rate:.6-K

S.!rt n!te !n In"$an F$nan&$a C!"e:

T$e Fnancal Secto# Leg"lat)e Reo#m" Comm""on (FSLRC! wa" "et +p on Ma#c$ 6&, 6433, o#

#e;w#tng t$e Code to #eg+late t$e nancal "ecto# and nt#od+ce p#ncple" o# nancal #eg+laton

and t$e con"tt+ton, o%'ect)e", powe#" and nte#acton o nancal agence". It" am wa" al"o to

%#ng a%o+t co$e#ence and ecac* n t$e nancal #eg+lato#* #amewo#k.

In 643, t$e comm""on, $eaded %* J+"tce /N S#k#"$na, "+%mtted t" #epo#t n two )ol+me",

w$c$ ncl+ded BAnal*"" and RecommedatonB and BD#at LawB. T$e #e)"ed d#at n twent* pa#t" wll

"t#)e to #eg+late nancal agence".

:nde# t$" Act, t$e Fnancal Secto# Appellate T#%+nal wa" e"ta%l"$ed to e8e#c"e t$e '+#"dcton,

powe#" and a+t$o#t* cone##ed +pon t.

Acco#dng to t$e Act, t$e gene#al d#ecton and management o t$e nancal agence" wll %e )e"ted

n t$e #e"pect)e %oa#d" ;; t$e Fnancal A+t$o#t* /oa#d o# t$e Fnancal A+t$o#t*, t$e Re"e#)e

/ank /oa#d o# t$e Re"e#)e /ank, t$e Red#e"" Agenc* /oa#d, wt$ #e"pect to t$e Red#e"" Agenc*,

t$e Co#po#aton /oa#d o# t$e Co#po#aton t$e Co+ncl /oa#d o# t$e Co+ncl and t$e De%t Agenc*

/oa#d, wt$ #e"pect to t$e De%t Agenc*.

T$e Code deal" wt$ t$e e"ta%l"$ment o nancal agence", e"ta%l"$ment and "t#+ct+#e o t$e

t#%+nal, allocaton and #eg+laton o nancal "e#)ce".

A pa#t o t d"c+""e" t$e +nctonng o nancal agence", "+c$ a" %oa#d" o nancal agence",

"t#engt$ and compo"ton o %oa#d" dec"on makng, ad)"o#* co+ncl", acco+nta%lt* mec$an"m"

and +ndng o# nancal agence".

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It al"o menton" t$e d"po"al o applcaton", no#maton and n"pecton", n)e"tgaton" and oence"

a" e8ec+t)e +ncton" o nancal agence". T$e"e nancal agence" al"o $a)e 1+a";'+dcal

+ncton" ;; admn"t#at)e law, "$ow ca+"e notce" and o#de#", eno#cement acton", p#oced+#e o#

eno#cement acton" and penalte".

Mo#eo)e#, t$e Code al"o cla#e" nancal con"+me# p#otecton, p#+dental #eg+laton, cont#act",

t#adng and ma#ket a%+"e, captal cont#ol", #e"ol+ton o nancal "e#)ce p#o)de#", nancal

"ta%lt* and de)elopment co+ncl, de)elopment (p#o)"on" o# #e)ew!, p+%lc de%t management

agenc*, oence", +ncton", powe#" and d+te" o t#%+nal, m"cellaneo+", and "c$ed+le".

CONCLUSION:

T$e Re"e#)e /ank o# Inda wa" con"tt+ted to #eg+late t$e ""+e o /ank note" and t$e keepng o

#e"e#)e" wt$ a )ew to "ec+#ng moneta#* "ta%lt* n Inda and gene#all* to ope#ate t$e c+##enc* and

c#edt "*"tem o t$e co+nt#* to t" ad)antage. Implct n t$e"e wo#d" a#e t$e co#e p+#po"e" o t$e

R/I@ to o"te# moneta#* and nancal "ta%lt* cond+c)e to "+"tana%le economc g#owt$, and to

en"+#e t$e de)elopment o an ecent and ncl+")e nancal "*"tem.

REFERENCES:

[email protected]#gHwkHRe"e#)e/ankoInda

$ttp@HHwww.#%.o#g.nHSc#pt"HAnn+alpolc*.a"p8

$ttp@HH#%doc".#%.o#g.nH#doc"H5+%lcaton"H5DF"HR/I/3&4-64436.pd

$ttp@HH#%doc".#%.o#g.nH#doc"HContentH5DF"HF:NC==E44234.pd

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http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://www.rbi.org.in/Scripts/Annualpolicy.aspxhttp://rbidocs.rbi.org.in/rdocs/Publications/PDFs/RBIB140520012.pdfhttp://www.rbi.org.in/Scripts/Annualpolicy.aspxhttp://rbidocs.rbi.org.in/rdocs/Publications/PDFs/RBIB140520012.pdfhttp://en.wikipedia.org/wiki/Reserve_Bank_of_India

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