Transcript Reserve Bank Of India - HUM … The Revolution

Reserve Bank Of India
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To regulate the issue of bank notes.
To maintain reserves with a view to securing
monetary stability.
To operate the credit & currency system of
the country.
Board of RBI
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Bank affair’s are governed by Central Board
of Directors
Central Board consists of Official and NonOfficial appointed by Govt. of India for a
period of four years.
Official Directors include Governor and not
more than 4 Deputy Governor.
RBI having four local boards in 4 regions to
represent territorial and economic interest of
local co-operative & indigenous banks.
Legal Framework
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Umbrella Acts which form the basis of its very
foundation.
Acts which govern the specific function of
apex body.
Acts which govern the Banking operation.
Acts which govern the individual institutions.
Main Functions of Reserve Bank of India
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Maintenance of Price Level.
Regulator & Supervisor of the financial
system.
Manager of Foreign Exchange.
Issuance & Replacement of Currency.
Functions of Various Departments of
RBI
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Urban Banks Department: RBI regulates
the interest rates on deposits & advances,
also prescribing min reserves & liabilities to
be maintained. Also refinance facilities to
state co-operative banks.
Rural Planning & Credit Department:
Facilitating credit to rural, agriculture & small
scale industries, Policy on priority sector
lending, support to NABARD etc.
Foreign Exchange Department:
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Timely realization of export proceeds and
reviews
Licensing banks to deal in foreign exchange,
collecting data related to forex transactions
from authorized dealers on daily basis for
exchange rate management.
Also laying down policy guidelines for risk
management to forex transactions in bank
Department of Banking Supervision
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Undertaking scheduled and on-site
inspections of banks
Determining the criteria for the appointment
of statutory auditors and assessing audit
performance and disclosure standards.
Dealing with financial sector frauds and
attending the complaints received against
banks and FI’s from public, banks &
Government.
Department of Banking Operations &
Development
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To promote & foster a sound & competitive
banking system.
Laying down regulations relating to capital
adequacy, asset classification, provision for
loan, investment valuation, accounting &
disclosure standards and risk management
systems.
Licensing of new banks, expansion of foreign
and domestic banks, approval for setting up
of subsidiaries.
Functions of Various Departments of
RBI
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Department of Information Technology:
Computerization in RBI
Legal Department: To tender legal advice on
various matters referred by the operational
departments/offices/associates of the reserve
bank.
Department of Govt. and Bank Accounts:
Acting as a banker to the banks,
administering public debt of both central &
state govt.
Functions of Various Departments of
RBI
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Monetary Policy Department: Preparation
of monetary budget, periodic review of
monetary, review of CRR & SLR stipulations,
analysis of data on developments in money
market.
Internal Debt Management Dept.: Managing
Internal Debt, Auctioning the govt. Debt from
time to time, Introduction of new instruments,
smoothening the maturity structure of debt.
Department of Economic Analysis and
Policy
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Analyzing the basic issues & problems
affecting the Indian economy.
Serves as a primary source of data &
information relating to aspects of Indian
economy.
Prepares monetary & credit aggregates,
balance of payments and external debt
statistics, internal debt & govt. finance
statistics, and flow of funds & financial
savings.