Description
It covers the history, structure, departments, team, milestones, subsidiaries, activities, authorities, minting foreign exchange, regulations etc related to RBI.
Reserve Bank of India (RBI)
Submitted to: Prof. Sumit Soni
Submitted by: Prajakti Sen (MBA (FA) Ist Sem secB)
Establishment
•
•
•
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
Preamble
• The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank 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."
Central Board
• The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. • Appointed/nominated for a period of four years Constitution: 1) Official Directors Full-time : Governor and not more than four Deputy Governors 2) Non-Official Directors Nominated by Government: ten Directors from various fields and one government Official Others: four Directors - one each from four local boards Functions : General superintendence and direction of the Bank's affairs
Local Board
• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi • Membership: • Consist of five members each • Appointed by the Central Government • For a term of four years Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.
Milestones
Continued
Continued
Continued
Management
RBI is made up of:
• • • • • • • • • • • 26 Departments: These focus on policy issues in the Reserve Bank’s functional areas and internal operations. ?? 26 Regional Offices and Branches: These are the Reserve Bank’s operational arms and customer interfaces, headed by Regional Directors. Smaller branches / sub-offices are headed by a General Manager / Deputy General Manager.
Continued
• • • • • • • • Training centres: The Reserve Bank Staff College at Chennai addresses the training needs of RBI officers; the College of Agricultural Banking at Pune trains staff of co-operative and commercial banks, including regional rural banks. The Zonal Training Centres, located at regional offices, train non-executive staff.
Research Institutes
• • • • • • • Research institutes: RBI-funded institutions to advance training and research on banking issues, economic growth and banking technology, such as, National Institute of Bank Management (NIBM) at Pune, Indira Gandhi Institute of Development Research (IGIDR) at Mumbai, and Institute for Development and Research in Banking Technology (IDRBT) at Hyderabad.
Subsidiaries
• • • • • • • • • : Fully-owned subsidiaries include National Housing Bank (NHB), Deposit Insurance and Credit Guarantee Corporation (DICGC), Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). The Reserve Bank also has a majority stake in the National Bank for Agriculture and Rural Development (NABARD).
Main Activities of RBI
• • • • • • • • • ?? Monetary Authority ?? Issuer of Currency ?? Banker and Debt Manager to Government ?? Banker to Banks ?? Regulator of the Banking System ?? Manager of Foreign Exchange ?? Regulator and Supervisor of the Payment and Settlement Systems ?? Developmental Role
Monetary Authority
• • • • • • • The main objectives of monetary policy in India are: ?? Maintaining price stability ?? Ensuring adequate flow of credit to the productive sectors of the economy to support economic growth ?? Financial stability The relative emphasis among the objectives varies from time to time, depending on evolving macroeconomic developments.
Issuer of currency
• • • • • • • •
•
The Reserve Bank is the nation’s sole note issuing authority. Along with the Government of India, we are responsible for the design and production and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes. The Reserve Bank also makes sure there is an adequate supply of coins, produced by the government. In consultation with the government, we routinely address security issues and target ways to enhance security features to
reduce the risk of counterfeiting or forgery
.
Printing and Minting
• • • • • • • • • • • • • Four printing presses actively print notes: Dewas in Madhya Pradesh, Nasik in Maharashtra, Mysore in Karnataka, and Salboni in West Bengal. The presses in Madhya Pradesh and Maharashtra are owned by the Security Printing and Minting Corporation of India (SPMCIL), a wholly owned company of the Government of India. The presses in Karnataka and West Bengal are set up by BRBNMPL, a wholly owned subsidiary of the Reserve Bank. Coins are minted by the Government of India. RBI is the agent of the Government for distribution, issue and handling of coins. Four mints are in operation: Mumbai, Noida in Uttar Pradesh, Kolkata, and Hyderabad.
RBI’s Anti-counterfeiting Measures
Continual upgrades of bank note security features ?? Public awareness campaigns to educate citizens to help prevent circulation of forged or counterfeit notes ?? Installation of note sorting machines
• • • •
Denominations of coins and notes in circulation:
Banker and Debt Manager to Government
• • • • • • • Managing the government’s banking transactions is a key RBI role. Like individuals, businesses and banks, governments need a banker to carry out their financial transactions in an efficient and effective manner, including the raising of resources from the public. As a banker to the central government, the Reserve Bank maintains its accounts, receives money into and makes payments out of these accounts and facilitates the transfer of government funds. We also act as the banker to those state governments that have entered into an agreement with us.
Banker to Banks
• • • • • • • Like individual consumers, businesses and organisations of all kinds, banks need their own mechanism to transfer funds and settle inter-bank transactions—such as borrowing from and lending to other banks—and customer transactions. As the banker to banks, the Reserve Bank fulfills this role. In effect, all banks operating in the country have accounts with the Reserve Bank, just as individuals and businesses have accounts with their banks.
Regulator of the Banking System
• • • • • • • • • Banks are fundamental to the nation’s financial system. The central bank has a critical role to play in ensuring the safety and soundness of the banking system—and in maintaining financial stability and public confidence in this system. As the regulator and supervisor of the banking system, the Reserve Bank protects the interests of depositors, ensures a framework for orderly development and conduct of banking operations conducive to customer interests and maintains overall financial stability through preventive and corrective measures.
Manager of Foreign Exchange
• • • • • • With the transition to a market-based system for determining the external value of the Indian rupee, the foreign exchange market in India gained importance in the early reform period. In recent years, with increasing integration of the Indian economy with the global economy arising from greater trade and capital flows, the foreign exchange market has evolved as a key segment of the Indian financial market.
Regulator and Supervisor of Payment and Settlement Systems
• • • • Payment and settlement systems play an important role in improving overall economic efficiency. They consist of all the diverse arrangements that we use to systematically transfer money—currency, paper instruments such as cheques, and various electronic channels.
Developmental Role
• • • • • • This role is, perhaps, the most unheralded aspect of our activities, yet it remains among the most critical. This includes ensuring that credit is available to the productive sectors of the economy, establishing institutions designed to build the country’s financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy.
Financial Inclusion and Literacy:
• • • • • • Expanding Access; Encouraging Education Expanding access to and knowledge about finance is a fundamental aspect of the Reserve Bank’s operations. These efforts are critical to ensuring that the benefits of a growing and healthy economy reach all segments of the population.
Policy Rates
• Bank Rate : 6.0% • Repo Rate : 8.50% • Reverse Repo Rate : 7.50%
References
• www.rbi.org.in • www.google.com
doc_543365204.ppt
It covers the history, structure, departments, team, milestones, subsidiaries, activities, authorities, minting foreign exchange, regulations etc related to RBI.
Reserve Bank of India (RBI)
Submitted to: Prof. Sumit Soni
Submitted by: Prajakti Sen (MBA (FA) Ist Sem secB)
Establishment
•
•
•
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
Preamble
• The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank 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."
Central Board
• The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. • Appointed/nominated for a period of four years Constitution: 1) Official Directors Full-time : Governor and not more than four Deputy Governors 2) Non-Official Directors Nominated by Government: ten Directors from various fields and one government Official Others: four Directors - one each from four local boards Functions : General superintendence and direction of the Bank's affairs
Local Board
• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi • Membership: • Consist of five members each • Appointed by the Central Government • For a term of four years Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.
Milestones
Continued
Continued
Continued
Management
RBI is made up of:
• • • • • • • • • • • 26 Departments: These focus on policy issues in the Reserve Bank’s functional areas and internal operations. ?? 26 Regional Offices and Branches: These are the Reserve Bank’s operational arms and customer interfaces, headed by Regional Directors. Smaller branches / sub-offices are headed by a General Manager / Deputy General Manager.
Continued
• • • • • • • • Training centres: The Reserve Bank Staff College at Chennai addresses the training needs of RBI officers; the College of Agricultural Banking at Pune trains staff of co-operative and commercial banks, including regional rural banks. The Zonal Training Centres, located at regional offices, train non-executive staff.
Research Institutes
• • • • • • • Research institutes: RBI-funded institutions to advance training and research on banking issues, economic growth and banking technology, such as, National Institute of Bank Management (NIBM) at Pune, Indira Gandhi Institute of Development Research (IGIDR) at Mumbai, and Institute for Development and Research in Banking Technology (IDRBT) at Hyderabad.
Subsidiaries
• • • • • • • • • : Fully-owned subsidiaries include National Housing Bank (NHB), Deposit Insurance and Credit Guarantee Corporation (DICGC), Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). The Reserve Bank also has a majority stake in the National Bank for Agriculture and Rural Development (NABARD).
Main Activities of RBI
• • • • • • • • • ?? Monetary Authority ?? Issuer of Currency ?? Banker and Debt Manager to Government ?? Banker to Banks ?? Regulator of the Banking System ?? Manager of Foreign Exchange ?? Regulator and Supervisor of the Payment and Settlement Systems ?? Developmental Role
Monetary Authority
• • • • • • • The main objectives of monetary policy in India are: ?? Maintaining price stability ?? Ensuring adequate flow of credit to the productive sectors of the economy to support economic growth ?? Financial stability The relative emphasis among the objectives varies from time to time, depending on evolving macroeconomic developments.
Issuer of currency
• • • • • • • •
•
The Reserve Bank is the nation’s sole note issuing authority. Along with the Government of India, we are responsible for the design and production and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes. The Reserve Bank also makes sure there is an adequate supply of coins, produced by the government. In consultation with the government, we routinely address security issues and target ways to enhance security features to
reduce the risk of counterfeiting or forgery
.
Printing and Minting
• • • • • • • • • • • • • Four printing presses actively print notes: Dewas in Madhya Pradesh, Nasik in Maharashtra, Mysore in Karnataka, and Salboni in West Bengal. The presses in Madhya Pradesh and Maharashtra are owned by the Security Printing and Minting Corporation of India (SPMCIL), a wholly owned company of the Government of India. The presses in Karnataka and West Bengal are set up by BRBNMPL, a wholly owned subsidiary of the Reserve Bank. Coins are minted by the Government of India. RBI is the agent of the Government for distribution, issue and handling of coins. Four mints are in operation: Mumbai, Noida in Uttar Pradesh, Kolkata, and Hyderabad.
RBI’s Anti-counterfeiting Measures
Continual upgrades of bank note security features ?? Public awareness campaigns to educate citizens to help prevent circulation of forged or counterfeit notes ?? Installation of note sorting machines
• • • •
Denominations of coins and notes in circulation:
Banker and Debt Manager to Government
• • • • • • • Managing the government’s banking transactions is a key RBI role. Like individuals, businesses and banks, governments need a banker to carry out their financial transactions in an efficient and effective manner, including the raising of resources from the public. As a banker to the central government, the Reserve Bank maintains its accounts, receives money into and makes payments out of these accounts and facilitates the transfer of government funds. We also act as the banker to those state governments that have entered into an agreement with us.
Banker to Banks
• • • • • • • Like individual consumers, businesses and organisations of all kinds, banks need their own mechanism to transfer funds and settle inter-bank transactions—such as borrowing from and lending to other banks—and customer transactions. As the banker to banks, the Reserve Bank fulfills this role. In effect, all banks operating in the country have accounts with the Reserve Bank, just as individuals and businesses have accounts with their banks.
Regulator of the Banking System
• • • • • • • • • Banks are fundamental to the nation’s financial system. The central bank has a critical role to play in ensuring the safety and soundness of the banking system—and in maintaining financial stability and public confidence in this system. As the regulator and supervisor of the banking system, the Reserve Bank protects the interests of depositors, ensures a framework for orderly development and conduct of banking operations conducive to customer interests and maintains overall financial stability through preventive and corrective measures.
Manager of Foreign Exchange
• • • • • • With the transition to a market-based system for determining the external value of the Indian rupee, the foreign exchange market in India gained importance in the early reform period. In recent years, with increasing integration of the Indian economy with the global economy arising from greater trade and capital flows, the foreign exchange market has evolved as a key segment of the Indian financial market.
Regulator and Supervisor of Payment and Settlement Systems
• • • • Payment and settlement systems play an important role in improving overall economic efficiency. They consist of all the diverse arrangements that we use to systematically transfer money—currency, paper instruments such as cheques, and various electronic channels.
Developmental Role
• • • • • • This role is, perhaps, the most unheralded aspect of our activities, yet it remains among the most critical. This includes ensuring that credit is available to the productive sectors of the economy, establishing institutions designed to build the country’s financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy.
Financial Inclusion and Literacy:
• • • • • • Expanding Access; Encouraging Education Expanding access to and knowledge about finance is a fundamental aspect of the Reserve Bank’s operations. These efforts are critical to ensuring that the benefits of a growing and healthy economy reach all segments of the population.
Policy Rates
• Bank Rate : 6.0% • Repo Rate : 8.50% • Reverse Repo Rate : 7.50%
References
• www.rbi.org.in • www.google.com
doc_543365204.ppt