SCHOOL OF COMMERCE

MBA(Foreign Trade) 5 Years "2 Semester"

Topic : Reserve Bank Of
Submi ed By:
India Submi ed To:
Ajay Pratap Singh Chandel
Anshika Mi al
Mrs. Pallavi Pa an
Anushka Jamra
Aparna Uniyal
Harsh Agrawal
Latika Dingwani
The Evolution and Functions of
the Reserve Bank of India: A
Comprehensive Overview
The Reserve Bank of India (RBI) is the central bank of India, established in 1935. It
regulates the issue of bank notes and the keeping of reserves to secure monetary
stability. The RBI also acts as the banker to the government and performs a wide
range of promotional functions.
Historical Background
The RBI has evolved significantly since its
establishment, adapting to the changing
economic landscape of India. It has played
a crucial role in shaping the country's
monetary and financial system,
contributing to economic growth and
stability.
Organizational Structure

The hierarchical framework of RBI,

comprising the Central Board, the
Governor, and various departments. The
function of each tier in ensuring effective
monetary governance.
Monetary Policy

The transition of RBI's monetary policy

from traditional to modern approaches,
including the adoption of inflation
targeting and forward guidance. The
evolving landscape of monetary policy in
India.
Monetary Policy Instruments

An overview of the tools used by RBI to

regulate money supply and interest rates,
such as open market operations, reserve
requirements, and policy rates. The
effectiveness of these instruments in
achieving monetary objectives.
Monetary Policy
Instruments
 Functions Of
Reserve Bank Of India
Monetary Policy
Regulatory Authority
Issuer Of currency
Banker to the Goverment
Monetary Policy Functions

The RBI formulates and implements

monetary policy to maintain price stability
and ensure adequate flow of credit to
productive sectors. It uses various tools
such as open market operations, reserve
requirements, and policy rates to achieve
its objectives.
Regulatory Authority

As the regulatory authority for the banking

sector, the RBI supervises and regulates
banks and non-banking financial
institutions. It aims to maintain the
stability and efficiency of the financial
system, ensuring the safety of depositors'
funds.
 Issuer Of Currency
The RBI is responsible for the issuance and management of currency in India. It
strives to ensure an adequate supply of clean and genuine banknotes, promoting
confidence in the currency system and facilitating smooth transactions.
Banker to the Government

The RBI acts as the banker to the central

and state governments, managing their
accounts, facilitating government
transactions, and conducting debt
management. It plays a crucial role in the
government's financial operations.
In line with its developmental role, the RBI promotes financial inclusion by
ensuring access to banking and credit services for all sections of society. It
implements measures to enhance the reach and effectiveness of financial services.
Challenges and Opportunities

The RBI faces various challenges, including

managing inflation, fostering inclusive
growth, and addressing technological
advancements. However, it also has
opportunities to leverage innovation and
strengthen its regulatory and supervisory
frameworks.
Conclusion

The Reserve Bank of India has been

instrumental in shaping India's monetary
and financial landscape, playing a pivotal
role in fostering economic stability and
development. Its multifaceted functions
and evolving responsibilities underscore its
significance as the central bank of the
country.
Thanks!