2. contents
• What is RBI?
• History of RBI
• Structure of RBI
• Functions of RBI
• Policy rates and reserve ratios
• Detection of fake currency
3. WHAT IS RBI
• RBI stands for Reserve Bank of INDIA.
• The Reserve Bank of India (RBI) is India's central
banking institution, which controls the monetary
policy of the Indian rupee.
4. HISTORY OF RBI
• It was established on 1 April 1935 .
• The share capital was divided into shares of 100 each
fully paid which was entirely owned by private
shareholders in the beginning.
• Following India's independence in 1947, the RBI was
nationalized in the year 1949.
5. HISTORY OF RBI
• 1950 -1960 : In the 1950s, the Indian government,
under its first Prime Minister Jawaharlal Nehru,
developed a centrally planned economic policy that
focused on the agricultural sector
• 1960 -1969 :the RBI was requested to establish and
monitor a deposit insurance system. It should restore
the trust in the national bank system and was
initialized on 7 December 1961.
6. HISTORY OF RBI
• 1969 -1985:In 1969, the Indira Gandhi-headed
government nationalized 14 major commercial banks.
Upon Gandhi's return to power in 1980, a further six
banks were nationalized. The regulation of the
economy and especially the financial sector was
reinforced by the Government of India in the 1970s
and 1980s.
7. HISTORY OF RBI
• 1985-1991:A lot of committees analysed the Indian
economy between 1985 and 1991. Their results had
an effect on the RBI. The Board for Industrial and
Financial Reconstruction, the Indira Gandhi Institute of
Development Research and the Security & Exchange
Board of India investigated the national economy as
a whole.
• 1991 -2000:The national economy came down in
July 1991 and the Indian rupee was devalued. The
currency lost 18% relative to the US dollar.
8. Structure of RBI
• Central Board of Directors
• Local Boards
• Offices of RBI
9. Functions of Reserve Bank of India
A. Traditional Functions
B. Promotional Functions
C. Supervisory /regulatory functions
10. Traditional Functions
1. Issue of currency –monopoly of note issue
2. Banker agent and advisor to government
3. Banker’s bank
4. Lender of the last resort
5. Controller of Credit
6. Custodian of foreign Reserve
11. Promotional / Developmental
Functions
1.Branch expansion policy
2.Industrial &agricultural finance
3.Protecting the interest of depositors and creditors
4.Helping co-operative sectors and small scale
industries
5.Providing refinance for export promotion
12. Supervisory / regulatory functions
1.Granting licence to banks
2.Approval of capital, reserves and liquid assets of
banks
3.Inspection of banks
4.Control over management ,methods,amalagamation
and liquidation
5.Audit ,periodical review and working of banks
13. Policy rates and reserve ratios
• Bank Rate
• Cash Reserve Ratio (CRR)
• Statutory Liquidity Ratio (SLR)
14. Detection Of Fake currency
In order to curb the fake currency menace, RBI has
launched a website to raise awareness among masses
about fake notes.
Developmental role:
Related functions
