FUNTIONS OF RBI

PRESENTED BY : RAKESH GANGURDE SACHIN MORE ANIL RAVIDAS SHUBHANGI MACHHI

Introduction
It is central bank of india Established in 1st April 1935 under the RESERVE BANK OF INDIA ACT Nationalized in year 1949 Its headquarters is in Mumbai (Maharashtra) Its present governor is Dr. duvvuri subbarao It has 24 regional offices ,most of them in state capitals. Website :www.rbi.org.in

Brief history
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 Rs. 5 crore Initially it was located in Calcutta It moved to Mumbai in 1937. Initially it was privately owned.

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Since nationalization in 1949 ,the RBI is fully owned by government of india. Its first governor was sir Osborne A smith April 1 ,1935 to June30,1937. The first Indian governor was Sir chintaman D Deshmukh (August 11,1943 to June 30,1949) On June 27,2006,the union Government of india reconstituted the central board of Director of the RBI with 13 members ,including Azim Premji and Kumar Mangalam Birla.

GOVERNERS sir osborne A smith (April 1 ,1935 to June30,1937)

Sir Chintaman D Deshmukh
(August 11,1943 to June 30,1949)

Dr. duvvuri subbarao

(September 5,2008)

preamble
The preamble of the RBI describes the the basic funtions of RBI AS : "...to regulate the issue of Bank Notes and 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 .

MAIN FUNTIONS OF RBI(Act 1934) Issue of currency Banker, Agent and advisor to the Government Bankers Bank Custodian of Foreign Exchange Reserves Credit Control Manager of foreign Bank

Issue of currency
enjoys monopoly. Destroys currency and coins. It has to keep in form of gold and foreign securities as per statutory rules against notes and coins.

Banker, Agent and advisor

Banker Agent
Advisor

Bankers Bank
maintain banking accounts of all schedule banks. keep cash reserve a fix percentage of their aggregate deposite liability.

expect for the help of RBI in the time of banking crisis.

Custodian of Foreign Exchange Reserves

Maintaining external value of rupee. Adopting appropriate monetary policies.
observe relationship of Indian currency with other international currency.

Credit Control
holds the cash reserves of all schedule banks. RBI has power to ask bank whole banking system not to lend a particular group or persons.

licence from RBI for banking operation.

Manager of foreign exchange

RBI plays key role in the regulation and development of foreign exchange market and assumes three broad roles : Regulation transaction. Ensure smooth conduct. Managing the foreign currency and gold reserve.

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