The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 under the RBI Act and was nationalized in 1949. RBI regulates monetary policy and banking operations in India through various quantitative and qualitative methods. It acts as a bank for the government and commercial banks and manages foreign exchange reserves and monetary policy tools like bank rate, open market operations, and cash reserve ratio to regulate money supply.

1. Reserve Bank of India

10. S.L.R. : Commercial Bank are required to maintain with themselves a certain proportion of their total deposit in near money form. SLR may be increased or decreased As when required.

14. Commercial banks are the oldest, biggest and fastest growing financial intermediaries They are important depositories of public saving and most important disburser of finance. Management of Reserve Creation of Credit

15. Origin of commercial bank can be traced back in vedic period( use of hundi) Middle of 19 th century Indigenous banking First bank Bank of Hindustan (1770) Later we had Presidency Bank in Calcutta Bombay & Madras 1919 Imperial Bank of India

16. Growth and Structure of commercial bank Importance of Indian commercial Banks in National Economy 72.2 37.83 61.5 2001-02 64.7 28.2 44.82 1995-96 64.8 40.2 52 1994-95 65.5 31.8 48.1 1990-91 73.8 45.8 35.9 1980-81 41.8 24 1975-76 14.2 13 1960-61 16.6 10 1951-56 Share in financial asset Deposit / Saving Deposit/N.I. Year

17. Indian Banking system RBI Schedule Banks Non Scheduled Bank State Coop. Commercial Bank Banks Indian Foreign PSU Pvt. Sector Bank Banks SBI & its subsidaries Other nationalized bank Regional rural bank Central Coop. bank Bank and Primary Credit Societies Commercial Bank

21. Banking Innovations Retail Banking Bank as authorized dealer Customer service Lead Bank scheme Service area approach Micro finance Consortium approach Credit cards Local Area Banks