Industry : BankingBrand : Reserve Bank of

India (RBI)

AboutBanking Sector :

Bank is a financial institution that undertakes the banking activity ie.it accepts deposits and then lends the same to earn certain profit.

Banking in India originated in the last decades of the 18th century.

The first banks were Bank of Hindustan and The General Bank of India.

Banking defined as the business activity of accepting and safeguarding money.

Banks act as payment agents.

Banking services include issuance of debit and credit cards, etc.

Borrow money by accepting funds deposited by current accounts.

The simple looking method of accepting or lending money.

Create new money when they make a loan.

A bank can generate revenue in a variety of different ways .

In 1990, licensing a small number of private banks.

These came to be known as New Generation tech-savvy banks

There has seen rapid growth with the three sectors of banks.

The introduction of online banking in India.

The use of computers in the banking sector in India has increased after the economic liberalization.

After 1991 country's banking sector has been exposed to the world's market .

In 1995, the Committee for proposing Legislation on Electronic Funds Transfer.

Total numbers of ATM’s installed in India as on end June 2012 is 99,218.

1935RBI’s operation begins on 1 April.

1937RBI’S Central office moves to Mumbai

1949Nationalization of Reserve Bank

1963Reserve Bank Staff Training College (RBSC) Established.

1969Nationalization of14 CommercialBanks

1975Regional Rural Banks Set-up

1966Co-operative BanksCome under RBI Regulation

1984Automated Magnetic Ink Character Recognition system introduced

History / Highlights:….

1992ECS & EFT introduced

1997Regulation of non-Banking finance companies strengthened

2000Currency processing mechanized

2004Real Time Gross Settlement (RTGS) commences

2005Machine readable security features introduced

2008Mobile Banking Enabled

2009RBI purchased 200 mts gold under IMF’s Gold sales program .

2010Year-Long platinum Jubilee celebrations

Management & Structure:….

Governor the chief Executive. Supervises & directs the affairs and business.

Management team includes Deputy Governor & executive directors.

GovernorDr .Raghuram

Rajan

Deputy GovernorDr.K.C.Chakrabarty

Deputy GovernorDr.Urjit R. Patel

Deputy GovernorShri.Anand Sinha

Deputy GovernorShri.H.R.Khan

Executive Directors Shri.G Gopalkrishna Shri.D.K.Mohanty Shri. S Karuppasamy Shri R. Gandhi Shri P. Vijaya Bhaskar

Shri B. Mahapatra Shri G. Padmanabhan Shri Jasbir Singh Dr. (Smt.) Deepali Pant Joshi

CentralBoard ofDirectors

Governor

Deputy Governor

Executive Director

Pricipal Chief General Manager

Chief General Managers

General Managers

Deputy General Managers

Assistant General Managers

Managers

Assistant Managers

Support Staff

Organizational Structure:….

Main Activities of the RBI:

….

The Reserve Bank is the umbrella network for numerous activities, all related to the nation’s financial sector, encompassing and extending beyond the functions of a typical central bank. This section provides an overview of our primary activities:

Issuer of Currency Monetary Authority Banker and Debt Manager to Government Banker to Banks Regulator of the Banking System Manager of Foreign Exchange Maintaining Financial Stability Regulator and Supervisor of the Payment

and Settlement Systems Developmental Role

Issuer of Currency :….

Core central banking function.

responsible for overall management of currency.

ensuring an adequate supply of notes.

enhance security feature of forgery of currency notes.

RBI’s Anti-counterfeiting Measures

Continual upgrades of bank note security features

Public awareness campaigns to educate of forged orcounterfeit notes

Installation of note sorting machines

From the 1st April 2014 we can Exchange the old Currency Notes in the Banks.

Denominations of coins and notes in circulation:

Coins in circulation: 50 paise , 1, 2, 5 and 10 Rupee

Notes in circulation: Rs. 5, 10, 20, 50,100, 500 and 1000

Bank notes are legal tender at any place in India for payment without limit.

As per Indian Coinage Act- Rupee coin (1 and above) can be used to pay /settle for any sum Paise 50 coin can be used to pay /settle any sum not exceeding Ten Rupees

Monetary Authority :…

One of the most important functions of central banks

Monetary policy deals with various policy instrument of money in the economy.

Central bank change the choice of instruments in monetary policy.

Maintaining Price stability & Financial stability.

Ensuring adequate flow of credit to productive sector

The basic functions is regulate the issue Bank notes.

Banker and Debt Managerto Government

In 1935 RBI becomes Banker & Debt Manager.

Managing the government’s banking transaction.

Like individual governments need a banker to carry their financial transactions.

Reserve Bank maintains its accounts & transfer of government funds.

RBI act as banker to state government when entered in agreement.

Banker to Banks

As the banker to banks, RBI focus on:

Enabling smooth, swift and seamless clearing and settlement of inter-bank obligations.

Providing an efficient means of funds transfer for Banks.

Enabling banks to maintain their accounts with us for purpose of statutory reserve.

Acting as lender of the last resort.

Regulator of the Banking System :

Banks fundamentals to financial system.

Critical role to play in safety and soundness of banking system.

Maintaining financial stability and public confidence in system.

Reserve Bank protects the interests of depositors, ensures a framework for conduct of banking operations.

Maintains financial stability through preventive and corrective measures.

Manager of Foreign Exchange

RBI plays a key role in Development of Foreign Exchange Market and assumes three broad roles relating to foreign exchange:

Regulating transactions related to the external sector.

Ensuring smooth conduct in the domestic foreign exchange market.

Managing foreign currency assets & gold reserves.

In investing its foreign assets,the Reserve Bankis guided by three principles: safety, liquidity and return

Maintaining Financial Stability :

In 2009, the Reserve Bank set up a dedicated Financial Stability Unit.The department’s remit includes:

Conduct of macro-prudential surveillance of the financial system on an

ongoing basis.

Developing models for assessing financial stability in going forward.

Preparation of half yearly financial stability reports.

Development of a database of key variables which could

impact financial stability.

Regulator and Supervisorof the Payment and Settlement Systems :

Increasingly recognized as a core responsibility of central banks.

RBI taken steps towards integrating the payment system with the settlement systems for government securities.

Play an important role in improving overall economic efficiency.

• They systematically transfer money—currency, paper instruments such as cheques, and various electronic channels.

Developmental Role

Reserve Bank has added new institutions as the

economy has evolved.Some of the institutions

established by the RBI include:

Deposit Insurance and Credit Guarantee Corporation

(1962): to provide protection to bank depositors.

Unit Trust of India (1964): the first mutual fund of the

country.

Industrial Development Bank of India (1964): a

development finance institution for industry.

National Bank for Agriculture and Rural

Development (1982): for promoting rural and

agricultural credit.

Discount and Finance House of India (1988):

a primary dealer in government securities.

National Housing Bank (1989): promoting

and regulating housing finance.

Securities and Trading Corporation of India

(1994): a primary dealer.

The Reserve Bank's web site posts relevant information for citizens in 13 local languages.

Communicating withthe Public

RBI’s emphasis on communication involves a range of activities, all aimed at sharing knowledge about the financial arena.

The Reserve Bank’s web site (www.rbi.org.in) provides a full range of information about his activities, his publications, his history and his organisation.

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