RESERVE BANK OF INDIA

INTRODUCTION

It is central bank of india Established in 1 April 1935 under the

RESERVE BANK OF INDIA ACT Its headquarters is in mumbai (maharashtra) Its present governor is Raghuram Rajan It has 22 regional offices,most of them in state

capitals website: http://www.rbi.org

HISTORY

It was established on 1st of April 1935 Initially it was located in Kolkata It moved to Mumbai in the year 1937 Initially it was privately owned It was the 1st bank to be Nationalized in 1949

CONT………

Since nationalization in 1949, the Reserve Bank is fully owned by the Government of India

On 27th June 2006, the Union Government of India reconstituted the Central Board of Directors of the Reserve Bank of India(RBI) with 13 Members, including Azim Premji and Kumar Mangalam Birla

PREAMBLE

The preamble of reserve bank of india describes the basic functions of reserve bank as:-

“…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 country to its advantage”

Structure of Banking in India

RBI STRUCTUREGovernor

Deputy Governor

Executive Directors

Principal Chief General Manager

Chief General Managers

General Managers

Deputy General Managers

Asstt. General Managers

Managers

Asstt Managers

Support staff

GOVERNORS (1 of 2)

Sir Osborne A. SmithApril 1, 1935 to June 30, 1937

Sir James Braid Taylor July 1, 1937 to February 17,1943

Sir Chintaman D.Deshmukh August 11, 1943 to June 30, 1949

GOVERNORS (2 of 2)

Dr. Bimal Jalan

November 22, 1997 to September 5, 2003

Dr.Y.V.Reddy  September 6, 2003 to September 5, 2008

Dr. D. Subbarao  September 5, 2008 to September 4, 2013

Dr.Raghuram Rajan(23rd governor of the Reserve Bank of india) 4 September 2013 onwards

Raghuram Rajan was born in 1963 in Bhopal, Madhya Pradesh, India. He graduated from the IIT, Delhi in 1985, Post Graduate Diploma in Business Administration from the IIM Ahmedabad in 1987. He received a PhD in Management from the MIT in 1991 for his thesis titled ”Essays on Banking’’

SYMBOL OF INDIAN RUPEE

SOME OF THE INDIAN RUPEES

NOTES COINS

KEY ROLES

Development of banking system Development of financial institution Development of backward areas Economic stability Economic growth Proper interest rate structure

FUNCTIONS

RBI also regulates the opening / installation of ATM

RBI regulates the opening of branches by banks

It ensures that all the N.B.F.C follow the KYC Guidelines

Fresh currency notes for ATM are supplied by RBI

Banker to the Government: Performs all banking function for the central and state governments and also act as their banker

The reserve bank of India also regulates the trade of gold.

It issues guidelines and directions for the commercial banks

RBI Headquarters’ Delhi entrance with the yakshini sculpture depicting ‘prosperity through agriculture’

Issue of currency

Objective: to ensure adequate quantity of supplies of currency notes and coins of good quality

What R.B.I does….Issues new currency and destroy currency and notes not fit for circulation.It has to keep in forms of gold and foreign securities as per statutory rules against notes and coins issued.

Development role

Objective: To develop the quality of banking system in india

What R.B.I does…. Perform a wide range of promotional functions

to support national objectives. To establish financial institution of national

importance, for eg:

NABARD, IDBI etc

BANKING SECTOR REFORMS…

Cash reserve ratio(CSR) Interest rate slabs Prudential norms Capital Adequacy Norms Freedom of operation Supervision of commercial banks Recovery of debts.

CONCLUSION

Central bank plays important role in achieving economic growth of a developing country

It promotes economic growth with stability

It helps in attaining full employment balance of payment disequilibrium and in stabilizing exchange rate

RBI is an autonomous body promoted by the government of India

The RBI operates a number of government mints that produce currency and coins