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eserve Bank ofeserve Bank ofIndiandia

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Historical BackgroundHistorical Background

Established on April 1, 1935 with theenactment of the Reserve Bank ofIndia Act, 1934.

In its early years, the Reserve Bankwas a shareholders institution.

The Bank started functioning as a state

owned institution from 1st June, 1949.

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The PreambleThe Preamble

According to the preamble of theReserve Bank of India Act, the basicfunction of the bank is to regulatethe issue of Bank notes and keepingof resources with a view to securingmonetary stability in India and

generally to operate the currency andcredit system of the country to itsadvantage.

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Currency AuthorityCurrency Authority

It is the sole authority for the issue ofcurrency in India responsible forissuance and distribution of currency

notes.

Maintenance and operation of currencychests throughout the country.

Recent developments coinisation, CleanNote Policy improving supply of notes,mopping up of soiled notes, eco-friendlyand fast processing of notes through

CVPS.

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Banker to GovernmentBanker to Government

The Reserve Bank acts as the banker tothe Central Government as well asState Governments.

Holding and maintenance of the Govt.sprincipal accounts.

Providing services like acceptance of

money on Govt. account, paymentand withdrawal of funds throughdifferent means.

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Public Debt ManagementPublic Debt Management

The Reserve Bank issues new loans onbehalf of Central and State Govt.

Raising resources from the market,Open Market Operation (OMO), andoverdrafts.

The Bank formulates the borrowing

programme for the year for the Govt.

Instruments involved are Treasury Bills,Govt. securities, Gilt funds, etc.

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Monetary RegulationMonetary Regulation

The Reserve Bank formulates andadministers the monetary policy.

Influences the level of aggregatedemand for goods and services inorder to ensure price stability andgrowth.

Instruments of monetary control CashReserve Ratio (CRR), StatutoryLiquidity Ratio (SLR), Bank Rate, etc.

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Regulation & Supervision ofRegulation & Supervision of

Financial IntermediariesFinancial Intermediaries

The Reserve Bank regulates thelicensing of banks, branch expansion,liquidity of their assets, managementand methods of working,amalgamation and reconstruction,etc.

Supervision is done through on-siteinspections as well as off-sitemonitoring system (OSMOS).

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Exchange Management &Exchange Management &

ControlControl

The Reserve Bank is the custodian ofthe countrys foreign exchangereserves responsible for managingthe investment and utilization of thereserves; and foreign exchangetransactions with the public through

Authorised Dealers (ADs).The Bank ensures the external stability

of the currency by maintaining therupees external value.

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Developmental RoleDevelopmental Role

Priority sector lending - agriculture,small enterprises, retail trade, microcredit, education loan and housingloan.

Government sponsored schemes IRDP, SGSY, PMEGP, SJSRY, SRMS,

NREGS, DRI. Lead Bank Scheme (LBS), Service Area

Approach (SAA), Regional Rural Banks

(RRBs), Local Area Banks (LABs), etc.

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Organisation Structure ofOrganisation Structure of

RBIRBI

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Rural Planning and CreditRural Planning and Credit

Department (RPCD)Department (RPCD)

Credit delivery innovations microfinance initiatives, KCCs, etc.

Restructuring cooperatives Framing guidelines for rehabilitation of

sick SSIs.

Most recent move FinancialInclusion and FinancialLiteracy.

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Financial InclusionFinancial Inclusion

Financial inclusion is the process ofensuring access to financial servicesand timely and adequate credit whereneeded by vulnerable groups such asweaker sections and low incomegroups at an affordable cost.

In this regard, RBI Ranchi hasenvisioned 100% financial inclusion inall the 24 districts of the state of

Jharkhand.

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Present Scenario in JharkhandPresent Scenario in Jharkhand

The State has a network of 1661 bankbranches.

There is 1 bank for every17,418 peoplein the State and this number variesfrom as low as 12,241 to a maximumof 26,550 in the Garhwa district.

More than 12 districts are still laggingbehind the State average in terms ofaccess to the formal banking system.

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Initiatives Undertaken toInitiatives Undertaken to

Promote Financial InclusionPromote Financial Inclusion

Govt. sponsored schemes

Self Help Groups (SHGs)

No Frill AccountsRelaxation of KYC norms

Kisan Credit Cards (KCCs)

BC/BF Model for doorstep bankingCredit Counselling Centres & RUDSETIs

http://rbi.org.in/financialeducation/

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hank Youhank You