RBI & ITS ROLE PPT.pptx

8/19/2019 RBI & ITS ROLE PPT.pptx

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RESERVE BANK OF INDIA & IT’S

ROLEBYPRAVEEN KUMAR RAI

SUBMITTED TOPROF(DR) M K BHANDARIDEAN/DIRECTORAMITY UNIVERSITY

MUMBAI


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INTRODUCTION

It is the Ce t!"# B" $ % I 'i"Est" #ishe' i 1 st April

1935” * 'e! the RESERVEBANK OF INDIA ACT” +

Its he"' ,*"!te! is i Mumb i (M"h"!"sht!")+ Its -!ese t.% e! %! is MR +DSubb r !” +

It h"s "" R#$i!% l O&'#s” 01%st % the1 i St"te 2"-it"#s+


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BRIEF (ISTOR)

It 3"s set *- % the !e2%11e '"ti% s % the(ilt!% )!u%$ C!mmissi!%” +

It 3"s st"!te' "s S* r#+(!l,#rs B %- 3ith "-"i' *- 2"-it"# % 5 'r!r#s +

I iti"##4 it 3"s #%2"te' i K!l- t +

It 1% e' t% Mumb i i 193. +

I iti"##4 it 3"s /ri0 t#l O2%#, +


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Si 2e N ti!% li ti!% i% 1949 theRese! e B" $ is *##4 %3 e' 4 the5% e! 1e t % I 'i"+


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/REAMB6E

The P!e"1 #e % the Rese! e B" $ %I 'i" 'es2!i es the "si2 * 2ti% s % theRese! e B" $ "s 67

78T! r#$ul t# t*# issu# ! B %- N!t#s%, -##pi%$ ! r#s#r0#s 2it* 0i#2 t!

s#'uri%$ m!%#t r st bilit i% I%,i %,

$#%#r ll t! !p#r t# t*# 'urr#%' %,'r#,it s st#m ! t*# '!u%tr t! its,0 %t $#:;


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FUNCTIONS OF RBI

Iss*e % 2*!!e 24De e#%-1e t !%#eB" $e! t% .% e! 1e t

B" $e! t% " $R%#e % RBI i i 8"ti% 2% t!%#F%!1*#"te 1% et"!4 -%#i24M" ".e! % %!ei. !ese! eC#e"!i . h%*se * 2ti% sRe.*#"ti% s % " $i . s4ste1


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Issu# ! Curr#%' T% e s*!e "'e,*"te ,*" tit4 % s*--#ies % 2*!!e 24%tes " ' 2%i s % .%%' ,*"#it4+Iss*es e3 2*!!e 24 " ' 'est!%4s 2*!!e 24 " ' 2%i s%t 9t %! 2i!2*#"ti% +It h"s t% $ee- i %!1s % .%#' " ' %!ei. se2*!ities

"s -e! st"t*t%!4 !*#es "."i st %tes & 2%i s iss*e'+

D#0#l!pm#%t l R!l# T% 'e e#%- the ,*"#it4 % " $i . s4ste1 i I 'i"+Pe! %!1s " 3i'e !" .e % -!%1%ti% "# * 2ti% s t%

s*--%!t "ti% "# % :e2ti es+ T% est" #ish 9 " 2i"# i stit*ti% s % "ti% "#

i1-%!t" 2e0 %! e+.6 NABARD0IDBI et2+


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B %-#r t! t*#

Pe! %!1s "## " $i . * 2ti% %! the 2e t!"# " 'the st"te .% e! 1e ts " ' "#s% "2ts "s thei! " $e!e;2e-ti . th"t %


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B %-#r t! b %-s=

M"i t"i s " $i . "22%* ts % "## s2he'*#e'" $s+

RBI "#s% !e.*#"tes the %-e i . /i st"##"ti% % ATMF!esh 2*!!e 24 %tes %! ATMs "!e s*--#ie' 4 RBI+

RBI !e.*#"tes the %-e i . % !" 2hes 4 " $s+

It e s*!es th"t "## the N:B:F:S %##%3 the K %3 Y%*! C*st%1e! .*i'e#i es+


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The Rese! e B" $ % I 'i" "#s% !e.*#"tes thet!"'e % .%#'+ C*!!e t#4 1. I%,i % b %-s "!ei %# e' i the t!"'e % $!l, i I 'i"+

RBI h"s i ite' "--#i2"ti% s !%1 1%!e " $s %!

'i!e2t i1-%!t % .%#' t% 2*! ill#$ l tr ,# i .%#'" ' i 2!e"se 2%1-etiti% i the 1"!$et+

C%##e2ti% " ' -* #i2"ti% % '"t"+

It iss*es .*i'e#i es " ' 'i!e2ti es %! the'!mm#r'i l b %-s:


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R!l# ! RBI i% i%> ti!%

'!%tr!lI 8"ti% "!ises 3he the 'e1" ' i 2!e"ses " ' the!e is "sh%!t".e % s*--#4 The!e "!e t3% -%#i2ies i the h" 's %the RBI+

M% et"!4 P%#i246 It i 2#*'es the i te!est !"tes+ >he the" $ i 2!e"ses the i te!est !"tes th" the!e is !e'*2ti% i

the %!!%3e!s " ' -e%-#e t!4 t% s" e 1%!e "s the !"te %i te!est h"s i 2!e"se'+

Fis2"# P%#i246 It is !e#"te' t% 'i!e2t t";es " ' .% e! 1e ts-e 'i .+ >he 'i!e2t t";es i 2!e"se' " ' .% e! 1e ts-e 'i . i 2!e"se' th" the 'is-%s" #e I 2%1e % the-e%-#e !e'*2es " ' he 2e the 'e1" ' !e'*2es+


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F!rmul t# m!%#t r p!li'

M"i t"i -!i2e st bilit " ' e s*!i . ,#?u t# >!2 % 2!e'it i the e2% %14+

It %!1*#"tes i1-#e1e ts " ' 1% it%!s them!%#t r p!li' +

I st!*1e ts6 ,*"#it"ti e & ,*" tit"ti e+


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@u %tit ti0# M# sur#s

?*" tit"ti e Me"s*!es BANK RATE” "#s% 2"##e'Dis'!u%t R t#” +It "#s% i 2#*'es R#p! R t#” +7Op#% M r-#t Op#r ti!%s” *4i . " ' se##i . %

.% e! 1e t se2*!ities+7V ri bl# R#s#r0# R ti!” it i 2#*'es C:R:R " 'S:6:R

@u lit ti0# M# sur#s1: Dir#'t A'ti!%": M!r l p#rsu si!%3: 6#$isl ti!%4: /ubli'it


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BANK RATE

It’s the i te!est !"te th"t is 2h"!.e' 4 "'!u%tr s '#%tr l b %- % #%" s " ' "' " 2es t%2% t!%# 1% e4 s*--#4 i the e2% %14 " ' the

" $i . se2t%!+

This is t4-i2"##4 '% e % " ,*"!te!#4 "sis t%2% t!%# i%> ti!% " ' st" i#i@e the 2%* t!4’s# '* %$# r t#s +

A 8*2t*"ti% i b %- r t#s Tri$$#rs Rippl#+E #'t "s it i1-"2ts e e!4 se2t%! % " 2%* t!4’se2% %14+

A 2h" .e i " $ !"tes " e2ts 2*st%1e!s "s iti 8*e 2es /rim# I%t#r#st R t#s %! -e!s% "#


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RE/O RATE

>he e e! the " $s h" e " 4 sh%!t".e % * 'sthe4 2" %!!%3 it !%1 the 2e t!"# " $+ Re-% !"teis the !"te "t 3hi2h %*! b %-s b!rr!2 'urr#%'

!%1 the 2e t!"# " $+

A !e'*2ti% i the !e-% !"te 3i## he#- " $s t%.et M% e4 "t " '*# p#r r t# +

>he the !e-% !"te i 2!e"ses %!!%3i . !%1 the2e t!"# " $ e2%1es m!r# # p#%si0# +

I %!'e! t% i 2!ese the #i,*i'it4 i the 1"!$et0 the2e t!"# " $ '%es it+


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REVERSE REPO RATE

It’s the !"te "t 3hi2h the " $s -"!$ surplusu%,s 3ith !ese! e " $+

>hi#e the Re-% !"te is the !"te "t 3hi2h the " $sb!rr!2 !%1 the 2e t!"# " $+

It is 1%st#4 '% e 0 3he the!e is s*!-#*s #i,*i'it4 ithe 1"!$et 4 the 2e t!"# " $+

The -!ese t !e e!se !e-% !"te is


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• C"sh Rese! e R"ti% (CRR) is the "1%* t %C"sh(#i,*i' 2"sh #i$e .%#')th"t the " $s h" e t%

$ee- 3ith RBI+• This R"ti% is "si2"##4 t% se2*!e s%# e 24 % the

" $ " ' t% '!"i %*t the e;2essi e 1% e4 !%1 the" $s+

• The -!ese t CRR !"te is + G +

CRR (C"sh Rese! e R"ti%)


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S6R St tut!r 6i?ui,it R ti!• It is the "1%* t " 2%11e!2i"# " $ ee's t%1"i t"i i the %!1 % 2"sh0 %! .%#' %! .% t+"--!% e' se2*!ities (B% 's) e %!e -!% i'i . 2!e'itt% its 2*st%1e!s+

• SLR !"te is 'ete!1i e' " ' 1"i t"i e' 4 the RBI(Rese! e B" $ % I 'i") i %!'e! t% 2% t!%# thee;-" si% % " $ 2!e'it+

• The -!ese t SLR !"te is +


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@UA6ITATIVE MEASURES

1: Dir#'t A'ti!%= The 2e t!"# " $ 1"4 t"$e 'i!e2t"2ti% "."i st 2%11e!2i"# " $s th"t i%#"te the!*#es0 %!'e!s %! "' i2e % the 2e t!"# " $+ This-* ish1e t is e!4 se e!e % " 2%11e!2i"# " $+

": M!r l p#rsu si!% 6 It is " %the! 1eth%' 4 3hi2h2e t!"# " $ 1"4 .et 2!e'it s*--#4 e;-" 'e' %!2% t!"2te'+ B4 1%!"# -!ess*!e it 1"4 -!%hi it %!

'iss*"'e 2%11e!2i"# " $s t% 'e"# i s-e2*#"ti e*si ess+


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3 : 6#$isl ti!%= The 2e t!"# " $ 1"4 "#s% "'%-t e2ess"!4

#e.is#"ti% %! e;-" 'i . %! 2% t!"2ti . 2!e'it1% e4 i the 1"!$et+

4: /ubli'it = The 2e t!"# " $ 1"4 !es%!t t% 1"ssi e

"' e!tisi . 2"1-"i. i the e3s -"-e!s01"."@i es " ' :%*! "#s 'e-i2ti . the -%%!e2% %1i2 2% 'iti% s % the 2%* t!4 s*..esti .2%11e!2i"# " $s " ' %the! 9 " 2i"# i stit*ti% s t%2% t!%# 2!e'it eithe! 4 e;-" si% %! 4 2% t!"2ti% +


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M % $#r ! F!r#i$% E '* %$#

T% "2i#it"te e;te! "# t!"'e " ' -"41e t " '-!%1%te %!'e!#4 'e e#%-1e t " ' 1"i te " 2e %

%!ei. e;2h" .e 1"!$et i I 'i"+

It "2ts "s " 2*st%'i" " ' M" ".es the F!r#i$%E '* %$# M % $#m#%t A't FEMA 1999:

RBI *4s " ' se##s %!ei. 2*!!e 24 t% 1"i t"i

the e;2h" .e !"te % I 'i" R*-ee /s %!ei.2*!!e 2ies #i$e the US D%##"!0 E*!%0 P%* ' " '


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Cl# ri%$ (!us# Fu%'ti!%s

The RBI %-e!"tes 2#e"!i .h%*ses t% sett#e " $i .t!" s"2ti% s+ The RBI

1" ".es J 1":%!2#e"!i . h%*ses % the2%* t!4 sit*"te' i'i e!e t 1":%! 2ities+ TheSt"te B" $ % I 'i" " ' its

"ss%2i"tes #%%$ " te!2#e"!i . h%*ses * 2ti%i %the! -"!ts % the2%* t!4 "s " ".e t %RBI+


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= R#$ul ti!% ! B %-i%$ S st#m

The -!i1e '*t4 % the !ese! e B" $ is t% !e.*#"te the" $i . s4ste1 % %*! 2%* t!4 i s*2h " 3"4 th"t the

-e%-#e % the 2%* t!4 2" t!*st i the " $i . U- t%-e! %!1 its '*t4+

The Rese! e B" $ h"s %##%3i . -%3e!s i this !e."!'6• 6i'#%si%$=A22%!'i . t% the se2ti% % the B" $i . Re.*#"ti%A2t0 e e!4 " $ h"s t% % t"i #i2e se !%1 the Rese! e

B" $+ The Rese! e B" $ iss*es s*2h #i2e se % #4 t%th%se " $s 3hi2h *#9## 2% 'iti% % the " $+


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M % $#m#%t= Se2ti% J % the B" $i . Re.*#"ti% A2t

e1 %3e!e' the Rese! e B" $ t% 2h" .e 1" ".e!%! 'i!e2t%! % " 4 " $ i it 2% si'e!s it e2ess"!4 %!'esi!" #e+Br %'* E p %si!%=

Se2ti% !e,*i!es e e!4 " $ t% t"$e -!i%!-e!1issi% !%1 Rese! e B" $ t% %-e e3 -#"2es% *si ess i I 'i"+/!2#r ! i%sp#'ti!% ! B %-=

U 'e! Se2ti% G0 the Rese! e B" $ 1"4 i s-e2t" 4 " $ " ' its %%$s " ' "22%* ts eithe! "t its%3 i iti"ti e %! "t the i st" 2e % the Ce t!"#5% e! 1e t+


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BIBIO


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RBI & ITS ROLE PPT.pptx