The Reserve Bank of India is India's Central Banking Institution, which controls the Monetary Policy of the Indian Rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934. The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders. Following India's independence on 15 - August - 1947, the RBI was nationalised in the year of 1 January 1949. In this PPT it covers all the RBI information.

3.  It is the Central Bank of India Established in “1st April 1935” under the
“RESERVE BANK OF INDIA ACT”.
 Its head quarter is in Mumbai (Maharashtra). Its present governor is
“Mr. Raghuram Rajan”.
 It has “22 Regional Offices”, most of them in State capitals.
 RBI also control the inflation by maintaining CRR and SLR ratio.
 CRR in between 3% to 20% & SLR is 8% {SLR includes cash reserve,
gold reserve, approved government securities(22%)}

4. The preamble of Reserve Bank of India describes the
basic functions of the reserve bank as :
“….. to regulate the issue of Bank
Notes and keeping of reserve with a view to securing
monetary stability in India and generally to operate the
currency and credit system of the country to its
advantage ”

6. ORGANIZATION OF RESERVE BANK :
 1 Governor
 4 Deputy Governor.
 1 Government Officials from
the Ministry of Finance.
 4 nominated directors by the
Central Government to represent
the local boards with the
headquarters at Mumbai, Kolkata,
Chennai and New Delhi.
 10 nominated directors by the
Government to give
representation to important
elements in the economic life of
country.

7.  ISSUE OF CURRENCY
 DEVELOPMENT ROLE
 BANKER TO GOVERNMENT
 BANKER TO BANK
 ROLE OF RBI IN INFLATION CONTROL
 FORMULATE MONETARY POLICY
 MANAGER OF FOREIGN RESERVE
 CLEARING HOUSE FUNCTIONS
 REGULATIONS OF BANKING SYSTEM

8.  It’s the interest rate that is charged by a country’s central bank on loans and advances
to control money supply in the economy and the banking sector.
 This is typically done on a quarterly basis to control inflation and stabilize the
country’s exchange rates.
 A fluctuation in bank rates Triggers a Ripple-Effect as it impacts every sector of a
country’s economy.
 A change in bank rates affects customers as it influences Prime Interest Rates for
personal loans.
 The present bank rate is 9.5%

9. QUANTITATIVE MEASURES.
 Bank rate policy
 Open market operation
 Cash reserve ratio
 Statutory liquidity ratio
Qualitative measures.
 Margin requirement
 Consumer credit regulation
 Guidelines
 Rationing of credit
 Direct action.

10.  REPO RATE
 REVERSE REPO RATE
Impact due to change in repo rate and reverse repo rate on
following :
1.) Interest rate
2.) Exchange rate
3.) Inflation

11.  KYC policy
 Customer Acceptance Policy
 Customer Identification Procedures
 Monitoring of Transactions
 Risk Management

12. Monetary policy is the macroeconomic policy laid down
by the central bank. It involves management of money
supply and interest rate and is the demand side economic
policy used by the government of a country to achieve
macroeconomic objectives like inflation, consumption,
growth and liquidity.

13.  PRICE STABILITY
 CONTROLLED EXPANSION OF BANK CREDIT
 PROMOTION OF FIXED INVESTMENT
 RESTRICTION OF INVENTORIES
 PROMOTION OF EXPORTS AND FOOD PROCUREMENT OPERATIONS
 DESIRED DISTRIBUTION OF CREDIT
 EQUITABLE DISTRIBUTION OF CREDIT
 TO PROMOTE EFFICIENCY
 REDUCING THE RIGIDITY

14. Every authority concerned with co-operative sector will have to
play its part in ensuring that the aspirations of the urban co-operative
banking sector are nurtured in a manner that
depositor interest and the public interest at large is protected.
The role of RBI could, thus, be to frame a regulatory and
supervisory regime that is multi-layered to capture the
heterogeneity of the sector and implement policies that would
provide adequate elbowroom for the sector to grow in a non-disruptive
manner. The state and central governments could
recognize that the UCBS are not just co-operative societies but
they are essentially banking entities whose management
structure is that of a co-operative.