Cartoon Presentation On Rbi

Reserve Bank of India (RBI)

Introduction RBI

– The Central Bank of India Need for bank to be constituted ◦ Issue of bank notes ◦ Reserves with a view to security monetary stability ◦ Credit and Currency system at the country to its advantage

Organisational Structure of RBI

ROLES AND FUNCTIONS OF RBI

SUMMARY ROLES

AND FUNCTIONS

1. Price stability 3. Encourage growth

9. Supervising authority

Monetary policy10. Regulator of money and credit

5. Financial stability 7. Development of financial infrastructure 5. Regulate the overall volume of money and credit 6. Lender of last resort 7. Note issuing authority 8. Bankers’ bank

11. Exchange control authority

Credit Control Methods

Need:  To

encourage the priority sectors for overall growth.

 Facilitate

the flow of adequate volume of bank credit to its industry, agriculture and trade.

 To

keep Inflation pressure under check.

 To

ensure that Credit is not diverted to undesirable purposes.

 To

facilitate the Development of Indian economic growth.

Types of credit control : Quantitative

Method Qualitative Method

Quantitative Methods Bank

rate policy

Open

Market operation

Variation Fixation

of cash reserve ratio

of lending rate

Qualitative Methods Fixation

of Margin Requirement

Regulation Rationing Prior

of consumer credit

of credit

authorisation of schemes

Direct

Action