RBI

Overview
It was established in April 1935 with a share
capital of Rs. 5 crores

The share capital was divided into shares of
Rs. 100 each fully paid which was entirely
owned by private shareholders in the
beginning.

The Government held shares of nominal
value of Rs. 2,20,000.Reserve Bank of India
was nationalized in the year 1949.
Overview
Has 22 regional offices, most of them in state
capitals.
Working is distributed among 24 departments
of organization.
Key Functions :
Monetary Authority
Regulator and supervisor of the financial
system, Manager of Foreign Exchange,
Issuer of currency,
Developmental role,
Related Functions
Overview
RBI is located only in 18 places for currency
operations

Distribution of notes and coins throughout
the country is done through designated bank
branches, called chests

Chest is a receptacle in a commercial bank to
store notes and coins on behalf of the
Reserve Bank

Reason of Formation
To regulate the issue of banknotes

To maintain reserves with a view to securing
monetary stability

To operate the credit and currency system of
the country to its advantage.
Functions Of RBI
Functions
Bankers' Bank
and
Lender of
the Last
Resort
Bank of Issue
Banker To
Government
Controller
of Credit
Custodian Of
Foreign Reserves
Functions Of RBI
Bank of Issue
Under Section 22 of the Reserve Bank of
India Act, the Bank has the sole right to
issue bank notes of all denominations.
The Reserve Bank of India is required to
maintain gold and foreign exchange
reserves of Ra. 200 crores, of which at
least Rs. 115 crores should be in gold.
The system as it exists today is known as
the minimum reserve system.


Functions Of RBI
Banker to Government
The Reserve Bank has the obligation to
transact Government business, via. to
keep the cash balances as deposits free of
interest.

The Reserve Bank of India helps the
Government - both the Union and the
States to float new loans and to manage
public debt.

Functions Of RBI
Bankers' Bank and Lender of the Last
Resort

Banks have been asked to keep cash
reserves equal to 5 per cent of their
aggregate deposit liabilities.

The scheduled banks can borrow from the
Reserve Bank of India on the basis of
eligible securities or get financial
accommodation in times of need.

Functions Of RBI
Controller of Credit
It controls the credit operations of banks
through quantitative and qualitative
controls

It controls the banking system through
the system of licensing, inspection and
calling for information.

It acts as the lender of the last resort by
providing rediscount facilities to scheduled
banks.



Functions Of RBI
Custodian of Foreign Reserves
Besides maintaining the rate of exchange
of the rupee, the Reserve Bank has to act
as the custodian of India's reserve of
international currencies.

To facilitate external trade and payment
and promote orderly development and
maintenance of foreign exchange market
in India.
Functions Of RBI
Supervisory functions

RBI has wide powers of supervision and
control over commercial and co-operative
banks

Relating to licensing and establishments,
branch expansion, liquidity of their assets,
management and methods of working,
amalgamation, reconstruction, and
liquidation.


Functions Of RBI
Promotional functions

The RBI has set up the Agricultural
Refinance and Development Corporation
to provide long-term finance to farmers.

The Bank now performs a variety of
developmental and promotional functions,
which, at one time, were regarded as
outside the normal scope of central
banking.



Financial Supervision
The Reserve Bank of India performs this
function under the guidance of the Board for
Financial Supervision (BFS)

BFS undertake consolidated supervision of
the financial sector comprising of
Commercial Banks
Financial Institutions
Non-banking Finance Companies
Financial Supervision
The BFS oversees the functioning of :
Department of Banking Supervision
(DBS)
Department of Non-Banking Supervision
(DNBS)
Financial Institutions Division
(FID)

Financial Supervision
The initiatives taken by BFS:
Restructuring of the system of bank
inspections
Introduction of off-site surveillance,
Strengthening of the role of statutory
auditors
Strengthening of the internal defenses of
supervised institutions
Financial Supervision
Current Focus
Supervision of financial institutions
Consolidated accounting
Legal issues in bank frauds
Divergence in assessments of non-
performing assets
Supervisory rating model for banks

Organization Structure

Chief General Managers-in -Charge


Support Staff


Managers

Asstt. Managers

Deputy General Managers

Governor

General Managers

Principal Chief General Manager Executive Directors
Deputy Governors
Asstt. General Managers
Chief General Managers
Facts Of RBI
RBI owns the following:
National Housing Bank(NHB)

National Bank for Agriculture and Rural
Development(NABARD)

Deposit Insurance and Credit Guarantee
Corporation of India(DICGC)

Bharatiya Reserve Bank Note Mudran Private
Limited(BRBNMPL)