Reserve Bank Of India

1
Reserve Bank Of India

• To regulate the issue of bank notes.
• To maintain reserves with a view to securing
  monetary stability.
• To operate the credit currency system of the
  country.

2
Board of RBI

• Bank affairs are governed by Central Board of
  Directors
• Central Board consists of Official and
  Non-Official appointed by Govt. of India for a
  period of four years.
• Official Directors include Governor and not more
  than 4 Deputy Governor.
• RBI having four local boards in 4 regions to
  represent territorial and economic interest of
  local co-operative indigenous banks.

3
Legal Framework

• Umbrella Acts which form the basis of its very
  foundation.
• Acts which govern the specific function of apex
  body.
• Acts which govern the Banking operation.
• Acts which govern the individual institutions.

4
Main Functions of Reserve Bank of India

• Maintenance of Price Level.
• Regulator Supervisor of the financial system.
• Manager of Foreign Exchange.
• Issuance Replacement of Currency.

5
Functions of Various Departments of RBI

• Urban Banks Department RBI regulates the
  interest rates on deposits advances, also
  prescribing min reserves liabilities to be
  maintained. Also refinance facilities to state
  co-operative banks.
• Rural Planning Credit Department Facilitating
  credit to rural, agriculture small scale
  industries, Policy on priority sector lending,
  support to NABARD etc.

6
Foreign Exchange Department

• Timely realization of export proceeds and reviews
• Licensing banks to deal in foreign exchange,
  collecting data related to forex transactions
  from authorized dealers on daily basis for
  exchange rate management.
• Also laying down policy guidelines for risk
  management to forex transactions in bank

7
Department of Banking Supervision

• Undertaking scheduled and on-site inspections of
  banks
• Determining the criteria for the appointment of
  statutory auditors and assessing audit
  performance and disclosure standards.
• Dealing with financial sector frauds and
  attending the complaints received against banks
  and FIs from public, banks Government.

8
Department of Banking Operations Development

• To promote foster a sound competitive banking
  system.
• Laying down regulations relating to capital
  adequacy, asset classification, provision for
  loan, investment valuation, accounting
  disclosure standards and risk management systems.
• Licensing of new banks, expansion of foreign and
  domestic banks, approval for setting up of
  subsidiaries.

9
Functions of Various Departments of RBI

• Department of Information Technology
  Computerization in RBI
• Legal Department To tender legal advice on
  various matters referred by the operational
  departments/offices/associates of the reserve
  bank.
• Department of Govt. and Bank Accounts Acting as
  a banker to the banks, administering public debt
  of both central state govt.

10
Functions of Various Departments of RBI

• Monetary Policy Department Preparation of
  monetary budget, periodic review of monetary,
  review of CRR SLR stipulations, analysis of
  data on developments in money market.
• Internal Debt Management Dept. Managing Internal
  Debt, Auctioning the govt. Debt from time to
  time, Introduction of new instruments,
  smoothening the maturity structure of debt.

11
Department of Economic Analysis and Policy

• Analyzing the basic issues problems affecting
  the Indian economy.
• Serves as a primary source of data information
  relating to aspects of Indian economy.
• Prepares monetary credit aggregates, balance of
  payments and external debt statistics, internal
  debt govt. finance statistics, and flow of
  funds financial savings.