reserve bank of india

1. RESERVE BANK OF INDIA
PATEL APURAV G. (140013111005)
PATEL TILAK S. (140013111009)
Guided by:-
PROF. Devang Sir
Subject: Engineering Economics and Management
Sem:3rd
Branch: E.C

2. In every country, there is one apex institution which acts as the leader of
the money market. In supervises, regulates and controls areactivites of
commercial banks and other financial institutions. Such an institution is
called as the central bank of country. In India RBI acts as a central Bank of
the country
Meaning of RBI

3. The Reserve Bank of India is the central bank of India it was established
as a shareholder’s bank on 1st April 1935. Its share capital was RS. 5
corer, divided in to 5 lakhs fully paid up shares of Rs.100 each. On 1st
January 1949 it was nationalized. Its headquarters is at Mumbai. RBI, like
any other bank performs almost all traditional central banking functions.
Due to country’s development it has also undertaken developmental
and promotional functions.
History of RBI

4. Functions of RBI

5. Under section of RBI Act, the bank has the sole right to issue
currency notes of all denominations except one rupee coins and
notes. The one-rupee notes and coins and small coins are issued
by central government and their distribution is undertaken by
RBI as the agent of the government. The RBI has a separate
issue of department which is entrusted with the issue of currency
notes.
Issue of Currency Notes

6. The RBI acts as a banker agent and adviser to the
government. It has obligation to transact the banking
business of central Government as well as state
governments, remits its funds, buys and sells foreign
currencies for it and gives it advice on all banking matters.
RBI helps the government – both central and state – to float
new loans and mange public debt. The bank makes ways and
meets advances of the government. On behalf of central
government it sells treasury bills and treasury bills and
thereby provides short – term finance.
Banker To The Government

7. RBI acts as a banker to other banks. It provides financial assistance
to scheduled banks and state co-operative banks in form of
rediscounting of eligible bills and loans and advances against
approved securities.
RBI acts as a lender of last resort. It provides funds to bank when
they fail to get it from other sources. It also acts as a clearing house.
Through RBI, banks make interbank payments.
Banker’s bank And Lender Off Last RESORT

8. RBI has power control the of credit created by banks. The RBI through its
various quantitative and qualitative techniques regulates total supply of
money and credit in the interest of economy. RBI pumps in money during
busy season and withdraws money during slack season.
Controller of Credit

9. RBI has the responsibility of maintaining fixed exchange rates with all
member countries of IMF. For this, RBI has centralized all foreign
exchange reserves (FOREX). RBI functions as custodian of nations
foreign exchange reserves. It has to maintain external value of rupee.
RBI achieves this aim through appropriate monetary fiscal and trade
policies and exchange control.
Exchange Control And Custodian
Of Foreign Reserve

10. The RBI collects and complies statistical information on banking
and financial operations of the economy. The Reserve Bank Of
India’ Bulletin is a monthly publication. It not only provides
information, but also results of important studies and
investigations conducted by reserve bank are given. ‘The Report
on currency and finance’ is an annual publication. It provides
review of various development of economic and financial
importance.
Collection And Publication Of Data

11. The RBI has wide powers of supervision and control over commercial
and co-operative banks, relating to licensing, establishment, branch
expansion, liquidity of assets, management and methods of working,
amalgamation, re-construction and liquidation. The supervisory
functions of RBI have helped great in improving the standard of
banking in India to develop on sound lines and improve the methods
of their operation.
Regulatory And Supervisory Functions

12. The RBI acts as a clearing house for all member banks. This avoids
unnecessary transfer of funds between the various banks.
Clearing House Functions

13. The RBI has helped in setting up industrial Finance Corporations of
India (IFCI), state financial corporations (SFCs), Deposit Insurance
Corporation, Agricultural Refinance and Development Corporation
(ARDC), units Trust of India (UTI) etc. these institutions were set up to
mobilize savings, promote saving habits and to provide industrial and
agricultural finance.
RBI has a special Agriculture credit Department (ACD) which studies
the problems of agricultural credit. For this Regional Rural banks, Co-
operative, NABRAD etc. were established. The RBI has also taken
measure to promote organized bill market In order to satisfy seasonal
credit needs.
Thus RBI has contributed to economic growth by promoting rural
credit, industrial financing, export trade etc.
Development And Promotional Function

14. SYMBOL OF RESERVE BANK OF INDIA (RBI)

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