Description
Reserve Bank Of India Presentation
Reserve Bank of India
Presented by, Ravi kanth Ritika
Reserve Bank of India
• • • • • Headquarters Established Governor Reserves Offices : : : : : Mumbai, Maharashtra 1 April 1935 Duvvuri Subbarao US$300.21 billion (2010) 22 regional offices
Structure
Central Board of Directors • The Central Board of Directors is the main committee of the central bank. • The Government of India appoints the directors for a four-year term. • The Board consists of: 1 governor 4 deputy governors, 4 directors in regional boards, and 10 other directors from various fields.
Main Functions
Monetary Authority: • Formulates, implements and monitors the monetary policy. Objective: Maintaining price stability and ensuring adequate flow of credit . Regulator and supervisor of the financial system: • Prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objective: Maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
Manager of Foreign Exchange: • Manages the Foreign Exchange Management Act, 1999.
Objective: To facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency: To ensure adequate quantity of supplies of currency notes and coins of good quality.
Objective: To give the public adequate quantity of supplies of currency notes and coins and in good quality.
Developmental role: • Performs a wide range of promotional functions to support national objectives. Related Functions: • Banker to the Government: Performs banking function for the central and the state governments; also acts as their banker. • Banker to banks: Maintains banking accounts of all scheduled banks.
Policy rates
• • • • • • Bank Rate Repo Rate Reverse Repo Rate Base Rate Savings Bank Rate Deposit Rate 6.0% 8.25% 7.25% 9.50%–10.75% 4% 8.50%–9.50%
Reserve ratios
Cash Reserve Ratio (CRR): • Every commercial bank has to keep certain minimum cash reserves with RBI. • RBI can vary this rate between 3% and 15%. • RBI uses this tool to increase or decrease the reserves affect a decrease or an increase in the money supply. • The current rate is 6%.
Statutory Liquidity Ratio (SLR): • Apart from the CRR, banks are required to maintain liquid assets in the form of gold and approved securities.
Generally RBI uses three kinds of selective credit controls:
• Minimum margins for lending against specific securities. • Ceiling on the amounts of credit for certain purposes. • Discriminatory rate of interest charged on certain types of advances.
Direct credit controls in India are of three types:
• Part of the interest rate structure i.e. on small savings and provident funds, are administratively set. • Banks are mandatorily required to keep 24% of their deposits in the form of government securities. • Banks are required to lend to the priority sectors to the extent of 40% of their advances.
References
en.wikipedia.org/wiki/Reserve_Bank_of_India
www.rbi.org www.economictimes.indiatimes.com
doc_446469511.pptx
Reserve Bank Of India Presentation
Reserve Bank of India
Presented by, Ravi kanth Ritika
Reserve Bank of India
• • • • • Headquarters Established Governor Reserves Offices : : : : : Mumbai, Maharashtra 1 April 1935 Duvvuri Subbarao US$300.21 billion (2010) 22 regional offices
Structure
Central Board of Directors • The Central Board of Directors is the main committee of the central bank. • The Government of India appoints the directors for a four-year term. • The Board consists of: 1 governor 4 deputy governors, 4 directors in regional boards, and 10 other directors from various fields.
Main Functions
Monetary Authority: • Formulates, implements and monitors the monetary policy. Objective: Maintaining price stability and ensuring adequate flow of credit . Regulator and supervisor of the financial system: • Prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objective: Maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
Manager of Foreign Exchange: • Manages the Foreign Exchange Management Act, 1999.
Objective: To facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency: To ensure adequate quantity of supplies of currency notes and coins of good quality.
Objective: To give the public adequate quantity of supplies of currency notes and coins and in good quality.
Developmental role: • Performs a wide range of promotional functions to support national objectives. Related Functions: • Banker to the Government: Performs banking function for the central and the state governments; also acts as their banker. • Banker to banks: Maintains banking accounts of all scheduled banks.
Policy rates
• • • • • • Bank Rate Repo Rate Reverse Repo Rate Base Rate Savings Bank Rate Deposit Rate 6.0% 8.25% 7.25% 9.50%–10.75% 4% 8.50%–9.50%
Reserve ratios
Cash Reserve Ratio (CRR): • Every commercial bank has to keep certain minimum cash reserves with RBI. • RBI can vary this rate between 3% and 15%. • RBI uses this tool to increase or decrease the reserves affect a decrease or an increase in the money supply. • The current rate is 6%.
Statutory Liquidity Ratio (SLR): • Apart from the CRR, banks are required to maintain liquid assets in the form of gold and approved securities.
Generally RBI uses three kinds of selective credit controls:
• Minimum margins for lending against specific securities. • Ceiling on the amounts of credit for certain purposes. • Discriminatory rate of interest charged on certain types of advances.
Direct credit controls in India are of three types:
• Part of the interest rate structure i.e. on small savings and provident funds, are administratively set. • Banks are mandatorily required to keep 24% of their deposits in the form of government securities. • Banks are required to lend to the priority sectors to the extent of 40% of their advances.
References
en.wikipedia.org/wiki/Reserve_Bank_of_India
www.rbi.org www.economictimes.indiatimes.com
doc_446469511.pptx