rbi
DESCRIPTION
rbi function, history introductionTRANSCRIPT
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.
HISTORY
• 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.
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Main function of reserve Bank of India
Monetary Authority
• It formulates, implements and monitors the monetary policy.
• to ensure an adequate flow of credit to productive sectors
Issuer of Currency
• issues and exchanges or destroys currencies.• the goal of ensuring an adequate supply of
clean and genuine notes.
Debt Manager to Government
• Managing the government’s banking transactions
• maintains its accounts, receives money into and makes payments out of these accounts.
Banker to Banks
• Transfer funds and settle inter-bank transactions.
• All banks operating in the country have accounts with the Reserve Bank.
Manager of Foreign Exchange
• plays a key role in the regulation and development of the foreign exchange market
• Main 3 functionRegulating transactions related to the external
sector .
Ensuring smooth conduct
Managing the foreign currency assets and gold reserves of the country
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)
Contd..
• Industrial Development Bank of India (1964)
• NABARD (1982)
• National Housing Bank(1989)
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.
Currently members of central board