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Rbi Functions TODAY’S TOPIC: RESERVE BANK OF INDIA- ORGANISATION STRUCTURE & FUNCTION • It is the Central Bank of India. Also known as Banker’s Bank. •Established in “1st April 1935” under the “RESERVE BANK OF INDIA ACT” • Its Head Quarter is in Mumbai (Maharashtra) . •Present Governor is Mr.Shaktikanta Das. •It has 22 “Regional Offices” most of them in State capitals. 1926- “Hilton young Commission” gave recommendation for RBI 1934- RBI Act was passed 1st April 1935- RBI was established 1937- RBI permanently moved from Kolkata to Mumbai 1st January 1949- RBI was Nationalised 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; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth." GOVERNOR DEPUTY GOVERNORS EXECUTIVE DIRECTORS PRINCIPAL CHIEF GENERAL MANAGERS CHIEF GENERAL MANAGERS GENERAL MANAGERS DEPUTY GENERAL MANAGERS ASSTT.GENERAL MANAGERS MANAGER ASSTT.MANAGERS SUPPORT STAFF GOVERNOR- Mr Shaktikanta Das Deputy Governors- Mahesh Kumar Jain Michael Patra Rajeshwar Rao Local Boards • MUMBAI • KOLKATA • CHENNAI • NEW DELHI The Members are appointed by the Central Government for a term of four years. Each board consists of five members. Functions : Their main purpose is 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. MANAGER OF ISSUE OF BANKER TO FOREIGN CURRENCY BANK RESERVE CLEARING DEVELOPMENT INFLATION HOUSE ROLE CONTROL FUNCTIONS FORMULATE REGULATIONS BANKER TO MONETARY OF BANKING GOVERNMENT POLICY SYSTEM Issuer of currency(SEC 22) – RBI issue, exchange currency notes and destroy notes and coins which are not fit for circulation. Rs 2 to Rs 2000 note is issued by RBI and signed by Governor whereas guaranteed by Govt of India. Rs 1 note and all coins are issued by govt .Rs1 note is signed by Finance Secretary (Ajay Bhusan Panday). Total 17 language written in currency notes (denomination of currency). Notes are printed by RBI . Min amount – 200 cr printed at a time Before circulating the notes same amount of currency is kept as reserve under (MRS since 1956). 200 cr(115 in form of gold and rest 85cr in form of forex). Coins are issued by govt under coinage act 1906. (But printed by RBI) RBI destroy mutilated notes. RBI manage Govt’s funds as banker and disburse amount according to the instruction given by Govt of India. RBI help Govt by managing money of social welfare schemes so that it reaches to the poor people by different financial Institutions through DBT. RBI acts as a banker of all banks means whenever banks have excess idle money in their hand they park with RBI to get some rate of return(rev repo rate) and borrow money from RBI according to their requirement. Whenever RBI find inflation is more than its normal (4%,+-2%) and it became problematic for ECONOMY or public to fulfil their basic needs then RBI increase REPO rate or policy rates to makes loan costly. Due to higher interest when people reduce borrowing then their demand fall and inflation comes under control. Formulate, implements and monitors the monetary policy. The objective is to maintain price stability and ensuring adequate cash flow of credit to productive sectors. When ever banks find liquidity crisis in an economy then banks know , RBI is the last option as fund provider, Where banks can borrow money according to their requirement. RBI keep foreign exchange in their custody to maintain currency exchange rate computable against other currency. so whenever RBI issue currency notes then out of every 200cr, 85cr must be reserved in terms of foreign exchange. Prescribes broad parameters of Banking operations within which the countries banking and financial system are working. Objective- Maintain public confidence in the system, protect depositors' interest and provide cost effective banking services to the public. Performs a wide range of promotional activity to support National objectives. RBI introduce new Banks like Bandhan Bank, IDFC Bank as well as payment Bank, Small Bank to empower our Banking system. Deposit Insurance And Credit Guarantee Corporation Of India (DICGC) Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) Reserve Bank Information Technology Private Limited (REBIT) Indian Financial Technology And Allied Services (IFTAS) Security Printing and Minting Corporation of India Limited (SPMCIL). It is an Indian government-owned corporation that engages in the production of bank notes, coins, non–judicial stamps, postage stamps, and other government related documents for India. It contains seven units, which include two presses, four mints, and a paper mill. India Government Mint operates four mints in the country for the production of coins. Mumbai, Maharashtra . Kolkata, West Bengal . Hyderabad, Telangana . Noida, Uttar Pradesh Security Printing and Minting Corporation of India Limited having two printing press – Nashik, Maharashtra Dewas, Madhya Pradesh Bharatiya Reserve Bank Note Mudran Private Limited Mysore,Karnataka Salboni,West Bengal Coins are minted Under The Coinage Act, 1906. Production by Government of India. Coins of the Indian rupee were first minted in 1950. Coins can be issued up to the denomination of Rs.1000. Q. Reserve Bank of India was established under which act? 1. Reserve Bank of India Act 1930 2. Reserve Bank of India Act 1921 3. Reserve Bank of India Act 1934 4. Reserve Bank of India Act 1945 5. None of these Q. RBI was established in: 1. 1 April, 1940 2. 1 April, 1935 3. 1 April 1948 4. 1 April 1958 5. None of these Q. Which of the following organization administered Monetary Policy as an arm of the economic policy? 1. Government of India 2. Reserve Bank of India 3. SEBI 4. SIDBI 5. NABARD Q. On 50 rupee currency note in India, whose signature is found? 1. President of India 2. Governor, RBI 3. Finance Minister 4. Prime Minister of India 5. Secretary, Ministry of Finance Q. Which of the following organization provide Insurance cover for bank deposits in India? 1. SBI 2. Government 3. RBI 4. LIC 5. DICGC Q. No banking company can grant loan against: 1. Its own certificate of deposit 2. Shares of a private Ltd company 3. Its own share 4. All above 5. None of the above Q. What is the minimum value of stock of gold coins, bullion & foreign securities which RBI has to maintain at any point of time : 1. Rs 200 cr 2. Rs 215 cr 3. Rs 115 cr 4. Rs 500 cr 5. None of the above Q. As per RBI guidelines, banks may freely grant advances against: 1. Partly paid shares 2. Gold bullions 3. Primary security of shares/ debentures to a sole proprietary/ partnership concern 4. All of the above 5. None of the above Q. One rupee notes bear the signatures of : 1.Finance Minister 2.Governor of RBI 3.Secretary, Ministry of Finance 4.Deputy Governor of RBI 5.None of the above Q. Soiled notes can be got exchanged by the tenderer, provided in case of single numbered notes: 1. Note should not be in more than 2 pieces 2. No essential features of the note should be missing 3. Complete number should be available in an undivided area on one of the pieces 4. All of the above 5. None of the above Q. Issue Department of RBI undertakes the task of issuing new notes. It issues these notes against: 1. Government of India rupee securities 2. Foreign securities 3. Gold coins and bullion 4. All of the above 5. None of the above .
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