8/10/2019 rosoft Office PowerPoint Presentation

1/13

Presented by:

Divya Bhalla(029)

Nancy Verma(033)Manika Verma(034)

8/10/2019 rosoft Office PowerPoint Presentation

2/13

It is the central bank of India

The reserve bank of India was established onApril 1,1935 in accordance with the provision of

the RBI Act,1934 The Headquarter of RBI was initially established

in Calcutta but was permanently moved toMumbai in 1937

Headquarter is the place where policies areformulated by the Governor

After the independence it was nationalized.

8/10/2019 rosoft Office PowerPoint Presentation

3/13

The preambleof the reserve bank of India is as

follows:

"...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 the

country to its advantage."

8/10/2019 rosoft Office PowerPoint Presentation

4/13

M JOR

FUNCTIONS

OF

RBI

8/10/2019 rosoft Office PowerPoint Presentation

5/13

1. Issue of Bank Notes:

The Reserve Bank of India has the sole right to issuecurrency notes except one rupee notes which are issued by

the Ministry of Finance.

Currency notes issued by the Reserve Bank are declared

unlimited legal tender throughout the country.

This concentration of notes issue function with the

Reserve Bank has a number of advantages:

(i) it brings uniformity in notes issue;(ii) it makes possible effective state supervision;

(iii) it is easier to control and regulate credit in accordance

with the requirements in the economy; and

(iv) it keeps faith of the public in the paper currency.

8/10/2019 rosoft Office PowerPoint Presentation

6/13

2. Banker to Government:

As banker to the government the Reserve Bank

manages the banking needs of the government.

It has to-maintain and operate the governments

deposit accounts.It collects receipts of funds and makes payments on

behalf of the government.

It represents the Government of India as themember of the IMF and the World Bank.

8/10/2019 rosoft Office PowerPoint Presentation

7/13

3. Custodian of Cash Reserves of Commercial Banks:

The commercial banks hold deposits in the Reserve

Bank and the latter has the custody of the cash

reserves of the commercial banks.

4. Custodian of CountrysForeign Currency Reserves:

The Reserve Bank has the custody of the countrysreserves of international currency, and this enables

the Reserve Bank to deal with crisis connected with

adverse balance of payments position.

8/10/2019 rosoft Office PowerPoint Presentation

8/13

5. Lender of Last Resort:

The commercial banks approach the Reserve Bank in timesof emergency to tide over financial difficulties, and the

Reserve bank comes to their rescue though it might charge

a higher rate of interest.

6. Central Clearance and Accounts Settlement:

Since commercial banks have their surplus cash reserves

deposited in the Reserve Bank, it is easier to deal with eachother and settle the claim of each on the other through

book keeping entries in the books of the Reserve Bank.

The clearing of accounts has now become an essential

function of the Reserve Bank.

8/10/2019 rosoft Office PowerPoint Presentation

9/13

7. Controller of Credit:

Since credit money forms the most important part ofsupply of money, and since the supply of money has

important implications for economic stability, the

importance of control of credit becomes obvious.Credit is controlled by the Reserve Bank in

accordance with the economic priorities of the

government.

8/10/2019 rosoft Office PowerPoint Presentation

10/13

To manage the monetary and credit system of

the country

To stabilizes the internal and external value of

rupee

To maintain balance between demand and

supply of currency

A significant object of the Reserve Bank of Indiahas also been to assist the planned process of

development of Indian economy

8/10/2019 rosoft Office PowerPoint Presentation

11/13

To act as the note- issuing authority, bankersbank and banker to government

To promote the growth of the economy within

the framework of the general economic policy ofthe government, consistent with the need ofmaintenance of price stability.

For Balanced and Systematic development of

banking in the country For development of organized money market in

the country

8/10/2019 rosoft Office PowerPoint Presentation

12/13

For centralization of cash reserves of commercial

banks

For proper arrangement of agricultural, industrial

finance

For proper management of public debts

8/10/2019 rosoft Office PowerPoint Presentation

13/13