Rbi
- 2. INTRODUCTION • It is the apex bank of India. • Started functioning from 1st April 1935. • RBI plays an important part in the development strategy of the government. • Its headquarter is in Mumbai. • It has 22 branch offices at most state capitals and at a few major cities in India • Present governor – Duvvuri subbarao.
- 3. • It was set up on the recommendations of the Hilton Young Commission • It was started as share-holders bank with a paid up capital of 5 crores. • Initially it was privately owned till Jan 1949 after which it became state-owed institution under RBI act • Initially it was located in Kolkata. It moved to Mumbai in 1937.
- 6. Main function of reserve Bank of India
- 7. Monetary Authority • It formulates, implements and monitors the monetary policy. • to ensure an adequate flow of credit to productive sectors
- 8. Issuer of Currency • issues and exchanges or destroys currencies. • the goal of ensuring an adequate supply of clean and genuine notes.
- 9. Debt Manager to Government • Managing the government’s banking transactions • maintains its accounts, receives money into and makes payments out of these accounts.
- 10. Banker to Banks • Transfer funds and settle inter-bank transactions. • All banks operating in the country have accounts with the Reserve Bank.
- 11. Manager of Foreign Exchange • plays a key role in the regulation and development of the foreign exchange market • Main 3 function Regulating transactions related to the external sector . Ensuring smooth conduct Managing the foreign currency assets and gold reserves of the country
- 12. Developmental Role • To develop the quality of banking system in India. • Performs a wide range of promotional functions to support national objectives. • To establish financial institutions of national importance • Deposit Insurance and Credit Guarantee Corporation (1962) • Unit Trust of India (1964)
- 13. Contd.. • Industrial Development Bank of India (1964) • NABARD (1982) • National Housing Bank (1989)
- 14. How they Function • Central board- the reserve bank’s affairs are governed by a central board of directors. Constitution: Official Directors Non-Official Directors • Local board-to represent territorial and economic interests of local cooperative and indigenous banks.
- 15. Currently members of central board