Reserve Bank Of India n n n To

Reserve Bank Of India n n n 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.

Board of RBI n n Bank affair’s 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.

Legal Framework n n 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.

Main Functions of Reserve Bank of India n n Maintenance of Price Level. Regulator & Supervisor of the financial system. Manager of Foreign Exchange. Issuance & Replacement of Currency.

Functions of Various Departments of RBI n n 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.

Foreign Exchange Department: n n n 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

Department of Banking Supervision n 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 FI’s from public, banks & Government.

Department of Banking Operations & Development n n n 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.

Functions of Various Departments of RBI n n n 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.

Functions of Various Departments of RBI n n 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.

Department of Economic Analysis and Policy n n n 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.