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Banking and Law Presentation
Banking and Law Presentation
SUBMITTED BY SUBMITTED TO
SHAMBHAVI TRIPATHI MR. KSHITIJ KHARE
Content
Introduction to RBI
Functions of RBI
Comparison of RBI with commercial banks
Monetary policies of RBI
Tools of Monetary Policy
Current Monetary Policy
Introduction to RBI
RBI is an apex body that controls, operates, regulates and directs the
entire banking and monetary structure of the country.
It is known as the supreme body as it occupies the top most position in the
monetary and banking system of the country.
All the financially developed countries have their own central bank.
India’s central bank is Reserve Bank of India i.e., RBI.
RBI was establish in April 1,1935 under RBI Act passed in 1934.
It controls money supply and credit in an economy.
There is only one central bank in a country which performs several
functions that normal banks cannot perform.
Function of RBI
Meaning It is an apex body that controls, operates, It is an institution which perform the function
regulates and direct the entire banking and of accepting deposits, granting loans and
monetary structure of the country. making investments with the objective of
earning profit.
Status It is the apex institution in the money market. It is merely a unit in the banking structure of
the country and operates under the control
of central bank.
Ownership It is generally owned and governed by the It can be owned and governed by the
government. government or the private sector.
Issue of currency It has sole monopoly in issue of currency. It has no power to issue currency.
Public Dealing It does not deal directly with the public. It deals directly with public.
Monetary policy of RBI
Monetary policy is the process by which a central bank (RBI) manages money
supply in the economy. The objectives of monetary policy include ensuring
inflation targeting and price stability, full employment and stable economic
growth.
For example:- Some monetary policy examples detailed in this section of the
report include increases and decreases in the federal funds rate, reductions or
increases in the Federal Reserve balance sheet like payments on SOMA
securities and changes in the required reserve rate for banks.