A PRESENTATION ON

RESERVE BANK OF INDIA

BY:- GROUP 1
 CENTRAL BANK
The central bank has been defined by
R.P.KENT as “an institution charged with
the responsibility of managing the
expansion and contraction of the volume
of money in the interest of the general
public welfare”
 ECB,FRANKFURT

  
FEDERAL RESERVE, USA
BANK OF ENGLAND, U K
HONG KONG MONETARY
AUTHORITY,H K.
CENTRAL BANK OF BRAZIL,BRASILIA
RESERVE BANK OF INDIA,
MUMBAI
 INTRODUCTION

The RBI was established by passing "transfer

of public ownership Act" in Sep-1948 under
which the ownership of
the bank was passed into the hands of the
Government of India with effect from 1st
January 1949.
 FUNCTIONS

The functions are classified into three heads,

A) Traditional functions

B) Promotional functions and

C) Supervisory functions.
 A) TRADITIONAL FUNCTIONS
1. Monopoly of currency notes issue
2. Banker to the Government(both the central and state)
3. Agent and advisor to the Government
4. Banker’s Bank
5. Acts as the clearing house of the country
6. Lender of the last resort (B R P)
7. Custodian of the foreign exchange reserves
8. Maintaining the external value of domestic currency
9. Controller of forex and credit (Credit Policy)
10. Ensures the internal value of the currency

11. Publishes the Economic statistical data

12. Fight against economic crisis and ensures stability of
Economy.
 B) PROMOTIONAL FUNCTIONS
1. Promotion of banking habit and expansion of banking systems.
2. Provides refinance for export promotion. (E P C G)
3. Expansion of the facilities for the provision of the agricultural
credit through NABARD.
4. Extension of the facilities for the small scale industries.
5. Helping the Co-operative sectors.
6. Prescribe the minimum statutory requirement. (SLR)
7. Innovating the new banking business transactions.
 C) SUPERVISORY
1. Granting license to Banks.
FUNCTIONS
2. Inspecting and making enquiry or determining position in
respect of matters under various sections of RBI and Banking

regulations.
3. Periodical review of the work of the commercial banks.
4. Giving directives to commercial banks.
5. Control the non-banking finance corporations.
6. Ensuring the health of financial system through on-site and
off-site verification.

These are all the functions which are protective to the

Indian Economy, that's why RBI is considered as the head
of all banks.
FUTURE PROSPECTS &
CONCERNS

 Supervision of financial institutions

 Consolidated accounting
 Legal issues in bank frauds
 Divergence in assessments of non-performing assets
 Supervisory rating model for banks. (Soundness and
Credibility of transactions)
 SLR

 FROM INFLATION TO GROWTH

 FOREIGN BANKS

 REAL ESTATE

 EXPORTS

 FDIs
“The country’s economic growth may fall short of the Reserve Bank of
India’s projection of 7.5-8% for the current financial year ending March
2009 and more pain would be in store for the next fiscal 2009-10 in terms of
growth”