PROJECT ON

RISK MANAGEMENT OF CENTRAL BANK OF

INDIA
SUBJECT-INTERNATIONAL BANKING FINANCE
MASTER OF COMMERCE
BANKING AND FINANCE
SEMESTER IV
2014-2015

SUBMITTED BY
SUKESH.K.NAIR
ROLL NO.37

PROJECT GUIDE
PROF. ARCHANA NAIR
VIDYA PRASARAK MANDAL
K. G. JOSHI COLLEGE OF ARTS & N. G. BEDEKAR COLLEGE OF
COMMERCE
JNANADWEEPA CHENDANI BUNDER ROAD, THANE (W) 400 601
(COMMUNITY COLLEGE OF UNIVERSITY OF MUMBAI)
RE-ACCREDITED A GRADE BY NAAC
 VIDYA PRASARAK MANDAL THANE
K.G.JOSHI COLLEGE OF ARTS &
N.G.BEDEKAR COLLEGE OF COMMERCE
CERTIFICATE
Of
PROJECT WORK
This is to certify that

Mr./Ms.____________________________________________
Of SECOND Year M.COM (Sem-IV) (Banking and Finance)
Roll No.________ has
Undertaken & completed the project work titled
___________________________________________
During the academic year 2014-15 under the guidance of
Mrs.______________________
Submitted on ______________ to this college as demanded
in the curriculum of

MASTERS OF COMMERCE (Banking and Finance)

This is bonafide project work & the information presented is true & original to the
best of our knowledge and belief.

Internal Examiner External Examiner

 ACKNOWLEDGEMENT
Success always strikes the door of the people who work hard with dedication
plus the blessing of the elders and gentle part of the friends and colleagues. The
success not due to any single person, but due to the combined efforts of a group
of dedicated and aspirant individuals. Several special people have contributed
significantly in the course. I wish to recognize and thank them.
Before I get presentation of this dissertation and entitled RISK
MANAGEMENT OF CENTRAL BANK OF INDIA. I find it as my obligation to
express my sincere gratitude to many a specialist in this field without those
assistance and guide, I would ever have success in making this venture in reality.
First of all I thank god almighty, for this kind blessing for the successful
completion of this project work. I expressed my sincere thanks to the facilities, of
Prof. ARCHANA NAIR. For encouragement and help given during this project work.

Yours sincerely,
SUKESH.K.NAIR
 DECLARATION
I, Mr.SUKESH.K.NAIR, student of VPM Joshi & Bedekar college of Arts &
Commerce of M.COM-II BANKING & FINANCE (SEMESTER- IV) hereby
declare that I have completed the project on RISK MANAGEMENT OF
CENTRAL BANK OF INDIA. Wherever the data or information have been
taken from any book or other sources the same has been mentioned in the
bibliography.
The information is submitted is true and original to the best of my knowledge.

Date:-
Place: - SIGNATURE OF THE STUDENT
 EXECUTIVE SUMMARY

Risk is defined as anything that can create hindrances in the way of achievement of certain
objectives. It can be because of either internal factors or external factors, depending upon the type of risk
that exists within a particular situation. Exposure to that risk can make a situation more critical. A better
way to deal with such a situation; is to take certain proactive measures to identify any kind of risk that can
result in undesirable outcomes. In simple terms, it can be said that managing a risk in advance is far better
than waiting for its occurrence. Risk Management is a measure that is used for identifying, analyzing and
then responding to a particular risk. It is a process that is continuous in nature and a helpful tool in
decision making process. Risk Management is the application of proactive strategy to plan, lead, organize,
and control the wide variety of risks that are rushed into the fabric of an organizations daily and long-
term functioning. Like it or not, risk has a say in the achievement of our goals and in the overall success
of an organization.

Risk Analysis and Risk Management has got much importance in the Indian Economy during this
liberalization period. The foremost among the challenges faced by the banking sector today is the
challenge of understanding and managing the risk. The very nature of the banking business is having the
threat of risk imbibed in it. Banks' main role is intermediation between those having resources and those
requiring resources. For management of risk at corporate level, various risks like credit risk, market risk
or operational risk have to be converted into one composite measure. Therefore, it is necessary that
measurement of operational risk should be in tandem with other measurements of credit and market risk
so that the requisite composite estimate can be worked out. So, regarding to international banking rule
(Basel Committee Accords) and RBI guidelines the investigation of risk analysis and risk management in
banking sector is being most important.
 INDEX
SR. TOPIC PG.NO
NO.
1 1
INTRODUCTION OF CENTRAL BANK OF
INDIA
2 5
INTRODUCTION OF RISK MANAGEMENT
3 RISK MANAGEMENT IN CENTRAL BANK 18
OF INDIA
4 48
DATA ANALYSIS
5 CONCULSION 49
6 BIBLIOGRAPHY 52

INDEX
 CHAPTER TOPIC PAGE NO
NO.
1 INTRODUCTION 1

2 WHAT IS SDR 2
3 5
HISTORY OF SDR
4 ROLE & CHARACTERISTICS OF SDR 7
5 WHY WAS SDR CREATED 12
6 USES OF SDR 13
7 BUYING AND SELLING SDR`S 14
8 SDR VALUATION 15
9 SDR INTEREST RATE 16
10 MECHANICS OF SDR ALLOCATION 17

11 SDR ALLOCATION TO IMF MEMBERS 16

12 18
ADVANTAGES & DISADVANTAGES OF
SDR
13 THE SDR DEPARTMENT WORKS 23
14 SDR AND WORLD LIQUIDITY 24
15 RECENT EVENTS 30

CONCLUSIONS

REFERENCE

RESEARCH AND METHODOLOGY:

For the purpose of present study secondary data were used.

SECONDARY DATA:

1) WEBSITES AND SEARCH ENGINES:

The internet, being the largest sources of information and knowledge, proved to be biggest help in data
collection. The website of various banks provides lots of information.

2) BOOK AVAILABLE:

The data was also collected from the book with us and the brochures also proved very useful.