Indian financial institution & Market

Submitted by:-

Sumit Pachauri

M.B.A. 3rd Semester

Manglayatan University, Beswan,Aligarh(U.P)

Institute of Business Management

Mangalayatan University, Aligarh (U.P.)

Under the Guidance of :-Dr. Jyoti Agarwal

Manglayatan University, Beswan,Aligarh(U.P)

RESERVE BANK OF INDIA

FUNCTIONS OF R.B.I.

Monetary Authority

Regulator & Supervisor of Financial System

Management of Foreign Exchange

Issuer of Currency

Banker of Banks

Detection of Fake Currency

Manglayatan University, Beswan,Aligarh(U.P)

Monetary Authority

• Reserve Bank of India is the main monetary authority of the country.

• It formulates, implements and monitors the monetary policy.• It has to ensure an adequate flow of credit to productive

sectors.

Manglayatan University, Beswan,Aligarh(U.P)

Regulator & Supervisor of the Financial System

• Prescribes broad parameters of banking operations within which the country''s banking and financial system functions.

• Objective: maintain public confidence in the system, protect depositors'' interest and provide cost-effective banking services to the public.

• Regulator and supervisor of the payment systems• Authorises setting up of payment systems• Lays down standards for operation of the payment system• Issues direction, calls for returns/information from payment system

operators.

Manglayatan University, Beswan,Aligarh(U.P)

Management of Foreign Exchange

• Manages the Foreign Exchange Management Act, 1999.• Objective: to facilitate external trade and payment and

promote orderly development and maintenance of foreign exchange market in India.

Manglayatan University, Beswan,Aligarh(U.P)

Issuer of Currency

• Issues and exchanges or destroys currency and coins not fit for circulation.

• Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Manglayatan University, Beswan,Aligarh(U.P)

Banker of Banks

• RBI also works as a central bank where commercial banks are account holders and can deposit money.

• RBI maintains banking accounts of all scheduled banks.• RBI to control the credit through the CRR, bank rate and open

market operations• It can grant financial accommodation to schedule banks. It

acts as the lender of last resort by providing emergency advances to the banks.

Manglayatan University, Beswan,Aligarh(U.P)

Detection of Fake Currency

• In order to curb the fake currency menace, RBI has launched a website to raise awareness among masses about fake notes in the market.www.paisaboltahai.rbi.org.in provides information about identifying fake currency

Manglayatan University, Beswan,Aligarh(U.P)

Manglayatan University, Beswan,Aligarh(U.P)