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