RESERVE BANK OF INDIA

Presented By-
P. Sai Prathyusha
19351044
 CONTENTS
Introduction
Objectives of RBI
Organisational Structure of RBI
Functions of RBI
Conclusion
 INTRODUCTION
• Reserve Bank of India (RBI) – central bank of India
• Owned and operated by the Government of India

• Headquarters : Mumbai, Maharashtra, India since 1937

• Established : 1st April 1935 under the Reserve Bank of India Act, 1934
• Nationalised : 1st January 1949
• Present Governor : Shaktikanta Das (25th governor) (27.11.2017)
 OBJECTIVES OF RBI
• The Preamble to the Reserve Bank of India Act, 1934 spells it as

“ to regulate the issue of Bank notes and

the keeping of reserves with a view to
securing monetary stability in India and
generally to operate the currency and
credit system of the country to its
advantage.’’
 ORGANISATIONAL STRUCTURE
Central Board of Directors (20 Members)

Governor (one)

Deputy Governors (four)

Directors (Four)

Executive Directors (Ten)

Government official nominated by central government (one)

 FUNCTIONS OF RBI
Financial supervision
 RBI performs this function under the guidance of the board for financial
supervision which was constituted in November1994 as a committee of the
central board of directors of the RBI.

 Objective: is to undertake consolidated supervision of the financial sector

comprising of commercial banks, financial institutions and non- banking
finance companies.
 FUNCTIONS OF RBI
Regulator and supervision of the financial
system
 The RBI prescribes board parameters of banking operations within which the
country’s banking and financial system functions.

 Objective is to maintain public confidence in the system, protect depositors interest

and provide a cost- effective banking services to the public.
 FUNCTIONS OF RBI
Regulator and supervisor of the payment
and settlement systems
 Important role in improving the overall economic efficiency.

 It gives the RBI an oversight authority, including regulation and supervision for the
payment and settlements systems in the country.

 It focuses on the development and functioning of safe, secure and efficient payment
and settlement mechanisms.
 FUNCTIONS OF RBI
Banker and debt manager to the
government
 Maintains accounts

 Raises money from public

 FUNCTIONS OF RBI
Custodian of foreign exchange
 Objective is to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.

 Facilitates external trade and development of foreign exchange market in India.

 Acts as a custodian and manages the FEMA

 FUNCTIONS OF RBI
Issue of currency
 Issues , exchanges or destroys currency.

 Provides the public adequately with currency notes and coins.

 Goal of ensuring an adequate supply of clean and genuine notes.

 FUNCTIONS OF RBI
Banker’s bank
 Transfers funds and settles inter- bank transactions.

 It maintains all the accounts of the commercial banks.

 It acts as a clearing house for cheques between the commercial banks.

 It acts as the lender of the last resort to the commercial banks.

 FUNCTIONS OF RBI
Controller of credit
 Credit control is a major weapon used by the RBI to control the demand and supply
of money in the economy.

 Credit is controlled by the reserve bank in accordance with the economic priorities
of the government.
 FUNCTIONS OF RBI
Detection of fake currency
 In order to counterfeit the fake currencies in India, the RBI has launched a website to
raise awareness among masses about fake notes in the market.
 The website is www.paisaboltahai.rbi.org.in (provides information about how to
identify a fake note)
RBI is expected to unearth black money from the market which would curb the
menace of fake currency.
 FUNCTIONS OF RBI
Developmental role
 Promotes and performs promotional functions to support national banking
and financial objectives.
i. Kisan credit card (KCC) Scheme
ii. Lead bank scheme
iii. Special agricultural credit plan
 CONCLUSION

 Therefore, we can conclude that RBI supports our nation’s economy in a vital
manner.

 It is the backbone of the economy.

 It promotes economic growth with stability.

 It plays a muti- facet role by executing multiple functions such as issuing currency,
managing the foreign exchanges, acting as a banker to the government and the
banks
THANK YOU!!!