1. Presented by:
Banty Kumar
Verma

2. Agenda
 Preamble
 Brief history
 Governors
 The key role of the RBI
 Monetary authority
 Regulator and supervisor of the financial system
 Manager of foreign exchange
 Issuer of currency
 Developmental role
 Instruments of credit control
 Objective and reasons for establishment of RBI
 Subsidiaries

3. Central Bank
“It is a bank of banker”
-- Samuelson
“Bank which has monopoly over note issue”
-- Vera Smith
“Central bank is the government’s bank”
-- Sayers

4. Structure of Banking in India
Reserve Bank
Commercial Bank Co-operative Bank
-Public Sector Bank -State Co-op bank
-Private Sector bank -Central Co-op Bank
-Regional Rural Bank -Primary Co-op Soc

5. Organizational Structure
Governor
Deputy Governor
Executive Directors
Principal Chief General Manager
Chief General Managers
General Managers
Deputy General Managers
Asstt. General Managers
Managers
Asstt Managers
Support staff

6. PREAMBLE
 The preamble of the Reserve Bank of India describe 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”

7. BRIEF HISTORY (1 OF 2)
 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 Crs
 It was established on 1st of April 1935
 Initially it was located in Kolkata
 It moved to Mumbai in the year 1937
 Initially it was privately owned
 It was the 1st bank to be Nationalized in 1949
 It has 22 regional offices, most of them in state capitals

8.  Since nationalization in 1949, the Reserve Bank is fully owned by
the Government of India
 Its First governor was Sir Osborne A.Smith(1st April 1935 to 30th
June 1937)
 The First Indian Governor was “Sir Chintaman D.Deshmukh”(11th
August 1943 to 30th June 1949)
 On 27th June 2006, the Union Government of India reconstituted the
Central Board of Directors of the Reserve Bank of India(RBI) with
13 Members, including Azim Premji and Kumar Mangalam Birla
BRIEF HISTORY (2 OF 2)

9. GOVERNORS (1 of 2)
Sir Osborne A. Smith
April 1, 1935 to June 30, 1937
Sir James Braid Taylor
July 1, 1937 to February 17,1943
Sir Chintaman D.Deshmukh
August 11, 1943 to June 30, 1949

10. Dr. Bimal Jalan
November 22, 1997 to September 5, 2003
Dr.Y.V.Reddy
September 6, 2003 to September 5, 2008
Dr. D. Subbarao
September 5, 2008 to September 4, 2011
September 5, 2011 to September 4, 2013 (close of business)
GOVERNORS (2 of 2)

11. Dr. Raghuram Rajan
September 4, 2013 (close of
business) onwards

12. THE KEY ROLES OF THE RBI
ARE…
 Regulator and supervisor of the financial system
 Manager of Exchange control
 Issuer of currency
 Banker to the Government
 Bank to banks: maintains banking accounts of the scheduled banks

13. Monetary Authority
 Formulates, implements and monitors the monetary policy
 Objective: maintaining price stability and ensuring adequate flow of
credit to productive sectors
Regulator and supervisor of the financial system:
 Prescribes broad parameters of banking operations within which the
country's banking and financial system functions
 Objective: maintain public confidence in the system, protect depositors
interest and provide cost-effective banking services to the public
Manager of Foreign Exchange
 Manages the Foreign Exchange Management Act, 1999.
 Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India

14. Issuer of Currency
 Issues and exchanges or destroys currency and coins not fit for
circulation
 Objective: to give the public adequate quantity of supplies of
currency notes and coins and in good quality
Developmental Role
 Performs a wide range of promotional functions to support
national objectives
Related Functions
 Banker to the Government: performs merchant banking
function for the central and the state governments; also acts as
their banker
 Banker to banks: maintains banking accounts of all scheduled
banks

15. INSTRUMENTS OF CREDIT CONTROL
 Quantitative or General Methods
 Qualitative or Selective Methods
Quantitative Qualitative
 Bank Rate  Selective Credit Control
 Open Market  Rationing of Credit
 Operation(OMO)  Moral Persuasion
 Change in Cash  Direct Action
 Reserve Ratio (CRR)
 Statutory Liquidity Ratio(SLR)
 Repo and Reverse Repo Ratio

16. The main objectives for establishment of RBI as the central bank of
India were as follows :
 To manage the Monetary and credit system of the country
 To stabilize internal and external value of rupee
 For balanced and systematic development of banking in the country
 For the development of organized money market in the country
 For proper arrangement of agriculture finance
 For proper arrangement of industrial finance
 For proper management of public debt
 To establish monetary relations with other countries of the world
and international financial institutions
 For centralization of cash reserves of commercial banks
 To maintain balance between demand and supply of currency
OBJECTIVE AND REASONS FOR
ESTABLISHMENT OF RBI

17. Fully owned
 National Housing bank (NHB)
 Deposit Insurance and Credit Guarantee Corporation of India
(DICGC)
 Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
Major stakes
 National Bank
 For Agriculture and Rural Development (N ABARD)
 The reserve Bank of India has recently divested stake in State Bank of
India to the government of India
SUBSIDIARIES..!

18.  RBI also regulates the opening / installation of ATM
 RBI regulates the opening of branches by banks
 It ensures that all the N.B.F.C follow the KYC Guidelines
 Fresh currency notes for ATM are supplied by RBI
 Banker to the Government: Performs all banking function for the
central and state governments and also act as their banker
 The reserve bank of India also regulates the trade of gold. Currently
17 banks are involved in the trade of gold in India RBI has invited
applications from more banks for direct import of gold to curb
illegal trade in gold and increase competition in the market
 It issues guidelines and directions for the commercial banks
Related Functions

19. Conclusion
 Central bank plays important role in achieving economic growth of
a developing country
 It promotes economic growth with stability
 It helps in attaining full employment balance of payment
disequilibrium and in stabilizing exchange rate
 RBI is an autonomous body promoted by the government of India
and is headquartered at Mumbai
 RBI is an autonomous body promoted by the government of India
and is headquartered at Mumbai treasury foreign exchange
movements and is also the primary regulator for banking and non-
banking financial institutions
 The RBI operates a number of government mints that produce
currency and coins

20. RBI Websites
 RBI Bulletin………………………………..www.bulletin.rbi.org.in
 RBI Annual Report……………………...….www.annualreport.rbi.org.in
 Weekly Statistical Supplement……………...www.wss.rbi.org.in
 Monetary and Credit Policy………………….www.cpolicy.rbi.org.in
 RBI Notifications…………………………….www.notifics.rbi.org.in
 RBI Press Release…………………………….www.pr.rbi.org.in
 RBI Speeches…………………………………www.speeches.rbi.org.in
 Monetary and credit Information Review……www.mcir.rbi.org.in
 Report on Trend and Progress of Banking…..www.bankreport.rbi.org.in

21. www.rbi.org.in
www.financialexpress.com
Sources

22. The path to 2050
Dreaming with BRICS

23. BRICS
 BRICS stand for Brazil, Russia, India, China &
South Africa.
 Came into existence in the year 2001 as BRICNATIONS.
 BRICS is international political organization of
leading emerging economies its Five members are
all developing industrialized countries.
 Biggest and fastest growing emerging economies
 Term BRIC was first prominently used in a
Goldman Sachs report from 2003.

24.  South Africa has been asked to join the BRIC
group of major emerging markets.
 Officially admitted as a BRIC nation on
December 24, 2010
 South Africa stands at a unique position to
influence African economic growth and
investment

25. Cont…
China is South Africa’s largest trading partner
India wants to increase commercial ties with
Africa
South Africa brought into BRIC "not only South
Africa but a larger African market of a billion
people,"

26. Objectives of BRICS
1-To achieve regional development
2-To remove trade barriers.
3-Economic development.
4-Optimum use of resources.
5-Builiding relationship.

27. BRICS Summit
 The BRIC countries met for their first official
summit on 16 June 2009, in Yekaterinburg,
Russia.
 Discussed the current global financial crisis,
global development, and further strengthening
of the BRICS group.
 Issued a joint statement on global food
security, calling for "action by all governments

28. Cont…
 Attacked the role of dollar as the primary
international currency & suggested new
global reserve currency that is 'diversified,
stable and predictable'.
 2nd BRIC summit held on April 16, 2010
Brazil
 3rd BRICS summit held on April 14, 2011
china

29. The Fourth BRICS Summit was hosted in New Delhi
on 29 March 2012 under the theme of “BRICS
Partnership for Global Stability, Security and
Prosperity.” The Summit has imparted further
momentum to the BRICS process of planning a joint
development bank.

30. Dreaming with BRICS:
The Path to 2050
 Already BRICS accounts for:
 40 per cent of the world's population,
 25.9 per cent of its total geographic area,
 40 per cent of global GDP
 By 2050, BRICS countries expected to
accounts for over 40% of the world’s
population and 60% of global GDP.

31. Cont…
 BRICS could be larger economies than the united
states and the developed economies of Europe
within 40 years .
 China and India will become world’s
dominant suppliers
◦ manufactured goods and services
 Brazil and Russia will become
dominant suppliers
◦ raw materials

32. BRAZIL
KEYADVANTAGES
One of the fastest growing economies in
the last century
Brazilian economy becoming less
dependent on exports
Extremely rich in resources such as
coffee, sugarcane, iron , and crude oil etc

33. Cont….
 Focus on equitable development has
resulted in significant poverty
reduction
Challenges for the Future
 Overburdened and ineffective judicial
system
Industrial output is weak

34. RUSSIA
KEY ADVANTAGES
 Russia has capability in high-technology
sectors
 Accounts for around 20% of the world’s oil
and gas reserves
 fall in the number of people living below the
poverty line

35. Cont…
Challenges for the Future
Labor shortages and poorly developed
infrastructure
Corruption

36. INDIA
Key Advantages
1.15 billion people
2nd largest labor force
Approximately 2.5 million college
graduates per year

37. Cont..
Challenges for the Future
Improving basic educational
achievement
Improving infrastructure and electrical
capacity
Expanding technology industry

38. CHINA
Key Advantages
 Broad expansion of educational
achievement
 Rapid economic growth
 Third largest country in land size

39. Cont…
Challenges for the Future
support to rural areas and less-developed
regions.
Bank of China sees inflation as a bigger
risk .
 Need to improve the investment

40. South Africa
KEY ADVANTAGE
The South African economy is now the
23rd largest in the world
Inflation is now below 5% and falling.
 25% of goods produced in South
Africa
are for export

41. Cont…
Challenges:
 The economy is growing but not fast
enough
 Lack of skills, particularly in IT.
 48% of the population is living below
the poverty line

42. Recession & Brics
 The global financial meltdown of 2008 has
not left the economies of Brazil, Russia,
India, China & south Africa known as the
BRICS club injured.
Š
 As the developed world faces recession,
BRICS growth is inevitably set to slow.
Š
 Yet strong foreign exchange reserves and
growing domestic demand has allowed
BRICS to with stand the crisis and continue
growing, strengthening their position as a
major consumer market.

43. Financial contribution
 India has provided loans of more than
$200million to the African countries since
2009.
Š
 China has invested almost $4000 million as
foreign direct investment.
Š
 Russia too has contributed more than
$3000million as FDI
Š
 Brazil has invested around $4000 million in
Africa.

44. Strengths
 After a decade of growth, BRICS economies
have built up strong consumer demand,
which could take the lead as the prime
engine for growth.
Š
 All BRICS countries have accumulated high
levels of foreign exchange reserves.
 foreign exchange reserves will allow
governments to boost public spending in
order to support the economy. This could take
the form of social benefits to encourage
consumers to spend more

45. Opportunities
 Inclusive growth
BRICS economies could become a much
larger force in the world economy.
 The BRICS real exchange rates could
appreciate by up to 300% over the next 50
years
 BRICS maintain policies and develop

46. BRICS NATIONS FUTURE
BANK
BRICS nations are going to develop a joint
bank within the BRICS nations for
assistant them self,
And to meet the following reasons:

47. Cont…
o Growing emerging markets.
o Climate change, food and energy security,
o International economic exchange.
o Financial assistant.
o Populations control

48. Market analysis
The concept of a joint development bank within
BRICS nations whether its needed to establish….?
YES its need full Thought.
1-GDP growth rate in BRICS nations is higher
2-Massive marketing opportunities.
3-Service sector contribution.
4-Human resources using.

49. SWOT Analysis
Strength of the BRICS nations
1- To use resources.
2-Market opportunities.
3-Economic developments.
Weakness of the BRICS nations
1- Population problem.
2- lack of Infrastructure.
3- Decreasing GDP growth rate.

50. Cont…
Opportunities of the BRICS nations
1- To expand the market.
2- Regional development.
3-Monetry resources.
Threats of the BRICS nations
1-Financial crises.
2- Threats from other unions.
3-dollar role

51. Criticism
 The BRICS dream isn’t green.
 Nothing more than a neat acronym for the
five largest emerging market economies.
 A criticism is that the BRICS projections are
based on the assumptions that resources are
limitless and endlessly available when
needed

52. Cont….
BRICS doesn’t have a concrete and
constructive agenda for change or vision for a
future world order.
 China is the muscle of the group and the
Chinese know it. They have effective veto
power over any BRICS initiatives

53. Conclusion
 The BRICS have come together in a political
grouping in a way that has far exceeded most
expectations.
 Although BRICS cooperation has been significant,
intra-BRIC competition and rivalry are important

54. cont….
BRICS nations have the potential and the
resources to form a powerful economy with
greater opportunity than any other nation
The BRICS are becoming super powers.
Whether they would surpass the
expectations lying on them is something that
we can only speculate on. But it is no doubt,
that they have become more important
today than before more rests on their growth
rather than on the growth of the previously
bigger powers of the world.

55. THANK YOU