1. Reserve Bank of India
Introduction, Formation, &
Management

2. Traditional Functions
 Issue of Bank Notes
 Banker to the
Government
 Bankers' Bank
 Monetary Regulation
 Custodian Foreign
Exchange

3. Issue of Notes
 Minimum Reserve
System
 Issue Department has 14
offices
 In addition, Currency
Chest maintained by
SBI, its Associates, or
PS Banks

4. Banker to The Government
 Maintaining Accounts
 Receiving the Revenue
of the governments
 Making Payments of the
governments
 Providing Remittance
Facilities
 Issuing Treasury Bills
 Providing Ways &
Means Finance
 Advisor to the
Government
 Representing the

5. Bankers’ Bank
 Ensuring Liquidity of Banks  Lender of Last
 Clearing House &
Remittance Facilities Resort
 Real Time Gross  Negotiated Dealing
Settlement: Introduced in System: Introduced
2004, it is the beginning of a
clearing system at the in Aug 1, 2005 for
national level SGL A/c holders, it
 NEFT is an anonymous
 Electronic Clearing Services order matching
 Banking system for
Research&Technology-
Institute for Development & government
Research in Technology, securities
which set up INFINET &
National Financial Switch
 Power Over Banks

6. Power Over the Banks
 Licensing to carry on banking
 Licensing for branch expansion
 Approval of liquidity, capital
adequacy and reserves
 Inspection of banks
 Appointment of chairmen with
the approval
 Mergers & Acquisitions of
banks
 Compulsory liquidation of
banks

7. Monetary Regulation
 Quantitative Credit  Selective Credit Control
Control -rationing of credit
-Bank Rate -margin requirement
-open market operation -period allowed for repayment
-variable cash reserve ratio -moral suasion

8. Custodian of Foreign Exchange
Reserve
 Obligation to buy & sell
Obligation to buy & sell
currencies of members
of IMF
 Receiving export
revenue and other
receipts from foreign
countries
 Routing all payments
outside
 Determining exchange
rates
 Market intervention

9. Promotional Functions of RBI
 Publication of Data  IDRBT in 1995
 Deposit Insurance  Indian Financial
Corporation Network (INFINET) in
 Unit Trust of India 1999
 Bill Market  National Financial
Schemes,1952 & 1971 Switch-ATM sharing by
 Banking Ombudsmen banks
Scheme, 1995-15 cities

10. Role of RBI in Agricultural Finance
 Establishment of
Agricultural Credit
Department in 1935
 Development of Co-
operative Movement
 Funding LDBs
 Setting up ARDC in 1963
 Encouragement of RRBs
 Establishing NABARD in
1982

11. Role of RBI in Industrial Development
 Establishment of Term
Lending Institutions
 Credit Guarantee
Schemes- Discontinued
in 1981
 Credit Guarantee
Corporation of India
Limited in 1971- Taken
over by Deposit
Insurance Corporation
in 1978
 Small Loans Guarantee

12. THANK YOU