RESERVE BANK OF INDIA

Presented By:

Himani

Maryam

Aarti

Asma

The Reserve Bank of India (RBI, Hindi:भारतीय ररज़र्व बैंक) is India's central

bank institution, which controls the

monetary policy of the India rupee.

The Preamble of reserve bank of India

describes the basic functions of RBI

The preamble of RBI is “...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."

•It was set up on the recommendation of Hilton

Young Commission

•It was started as Share-holder’s bank with a paid

up capital of 5 crores

•It was started on 1st April 1935

•It was initially located in Kolkata

•It moved to Mumbai in the year 1937

•Initially it was privately owned

•It was first bank to be nationalized in 1949

•It has 22 regional offices most of them situated

in state capital

• Issue of bank notes

• Banker to government

• Custodian of bank reserves of

commercial banks

• Custodian of country’s foreign

currency reserves

• Lender of last resort

• Central clearance and accounts

settlement

• Control of credit

•Central board of directors

•Governors

•Supportive bodies

•Offices and branches

•Bank rate

•Reserve requirement cash

reserve ratio

•Stautory liquid ratio

Commercial

Banks

•Public sector

Bank

•Private sector

Bank

•Regional rural

bank

Co-operative

banks

•State co-op bank

•Central co-op

bank

•Primary co-op

bank

Fully Owned•National Housing bank(NHB)

•Deposit Insurance and credit guarantee

co-operation of India

•Bhartiya reserve bank note mudran

private limited

Major Stakes•National bank for agriculture and rural

development (NABARD)

•RBI recently divested stakes in SBI to

government of India

•Qualitative

•Quantitative

•Bank rate

•Open market operations

•Cash reserve ratios (CRR)

•Statutory liquid ratio

•Regulation of consumer credit

•Rationing of credit

•Moral persuasion

•Direct action

•Changes in margin requirements

•Current governor of RBI (23RD

governor of RBI) – Raghuram

Govind Rajan

•Current Cash Reserve(CRR) ratio

of RBI – 4%

•Current Bank Rate of RBI – 8.25%

•Current Statutory Liquidity Ratio of

RBI – 21.50%

•Flexible Monetary policy

•Stable structure of interest rates

•Modern banking and credit structure

•Cheap remittance facilities

•Successful management of public debt

•Exchange stability

•Enchanced public confidence in banking

sector

•Central authority of Indian money market

market

•Development of bill market

•Rational allocation of credit

•Monetary stability

•Contribution to economic development