Submitted by---Megha Shrimankar B-38

RBI Changes in RBI policy since Raghu ram Rajan appointed as Governor

IntroductionThe central bank of the country--Reserve Bank of India (RBI).Established in 1st April 1935 Initially it was located in KolkataIt was set up on the recommendations of Hilton Young CommissionIt was started as Share-Holders Bank with a share capital of Rs. 5 corers.The share capital was divided into shares of Rs. 100 each fully paid up which was entirely owned by private shareholders in the beginning.Reserve Bank of India was nationalized in the year 1949

1935Operations begin on April 11949Nationalisation of the Reserve Bank; Banking Regulation Act Enacted1966Cooperative banks come under RBI Regulation1969Nationalisation of 14 major commercial banks (six more were nationalised in 19801973RBI strengthens exchange controls by amending Foreign Exchange Regulation Act 1975Regional Rural Banks set up1991India faces balance of payment crisis; pledges gold to shore up reserves. Rupee Devalued2000Foreign Exchange Management Act replacesFERA2002Clearing Corporation of India Limited (CCIL) commences clearing and settlement in government Security2005Focus on financial inclusion and increasing the outreach of the banking Sector2006RBI empowered to regulate money, forex, G-sec and gold related securities Market2009Pro-active efforts to minimise impact of global financial Crisis

Functions of RBIIssue of currencyDevelopment roleBanker to governmentBanker to bankRole of RBI in inflation controlFormulate monetary policyManager of foreign reserveClearing house functionsRegulations of banking system

Policy Rates, Reserve Ratios, Lending and Deposit Rates as of August 8, 2014Bank Rate 9%Repo Rate 8%Reverse Repo Rate 7%Cash Reserve Ratio (CRR) 4%Statutory Liquidity Ratio (SLR) 22.00%Base Rate 10% 10.25%Savings Deposit Rate 4%Term Deposit Rate 8%9.5%

GOVERNORS OF THE RBISir James Braid Taylor July 1, 1937 to February 17,1943M. Narasimham May 2, 1977 to November 30, 1977K.R. Puri August 20, 1975 to May 2, 1977Dr. I.G.Patel December 1, 1977 to September 15, 1982Dr. Manmohan Singh September 16, 1982 to January 14, 1985A. Ghosh January 15, 1985 to February 4, 1985R.N. Malhotra February 04,1985 to December 22, 1990S.Venkitaramanan December 22, 1990 to December 21, 1992Dr. C.Rangarajan December 22, 1995 to November 22, 1997 December 22, 1992 to December 21, 1995Dr. Bimal Jalan November 22, 1997 to September 5, 2003Dr.Y.V.Reddy September 6, 2003 to September 5, 2008Dr. D. Subbarao September 5, 2008 to September 4, 2011 September 5, 2011 to September 4, 2013 (close of business)Dr. Raghuram Rajan September 4, 2013 (close of business) onwardsSir Osborne A. Smith April 1, 1935 to June 30, 1937

Governor of RBIRaghuram Rajan is the 23rd governor of the Reserve Bank of IndiaMr. Rajan's second assignment in the country. He was appointed the Chief Economic Adviser to the Finance Ministry in August last year.Mr. Rajan's claim to fame is his prediction of the 2008 global financial crisis.Mr. Rajan has worked as the Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago's Booth School of Business.

In January 2003, the American Finance Association awarded Mr. Rajan the inaugural Fischer Black Prize, given every two years to the financial economist under age 40 who has made the most significant contribution to the theory and practice of finance.He is the author of the popular bookFault Lines: How Hidden Fractures Still Threaten the World Economy

Potential LeaderStep up and be firmLean on predecessors and strong team matesThink Straight - details and peopleAcknowledge the tough choices but not dwell on themLook ahead - plan for the years beyond the current doldrums

5 Pillars PolicyPillar 1:Monetary policy framework.Pillar 2:Reform Indias banking system.Pillar 3:Liberalizing Indian markets.Pillar 4:Financial inclusion.Pillar 5:Dealing with financial distress

Credit policy of RBIWar on inflation is backWorst over for rupeeFix the internal macro-economic issuesRBIs biggest concernsGrowth expectations brighteningRBI measures impactHome loan, auto loans likely to rise