RESERVE BANK OF INDIA
AN INTRODUCTION
• RBI is the central bank of the country
• It is the apex institution of country’s monetary
and financial system
• It was established on the recommendations of
hilton young commission as a body corporate
under the RBI act 1934
• It plays a leading role in organising, running,
supervising, regulation and developing the
monetary and financial system
Continued……
• The design and conduct of monetary and
credit policy are its special responsibility.
• It was in 1948, through the Reserve
bank(Transfer of public ownership) Act,1948
the entire share capital was acquired by
central govt
• Its head office located at Mumbai
ORGANISATION AND MANAGEMENT
OF RBI
1. Central board- The general superintendence
and direction of the banks affairs is in the
hands of central board of directors. It
comprises of a governor, four deputy
governors and 15 directors.
2. Local board- there is a local board with
headquarters at mumbai, kolkata, delhi and
chennai for each of the regional areas of the
country i.e. east, west, north and south
METHODS OF CREDIT CONTROL
TECHNIQUES USED BY RBI
QUANTITATIVE OR GENERAL
METHODS
QUALITATIVE
METHODS
MARGIN REQUIREMENTS
REGULATION OF CONSUMER CREDIT
BANK RATE
OPEN MARKET OPERATIONS
CHANGE IN CRR AND SLR
RATIONING OF CREDIT
DIRECT ACTION
MORAL SUASION
MONETARY POLICY
• Monetary policy refers to that policy through
which the central bank of the country
controls:• The supply f money
• Availability of money and
• Cost of money i.e. rate of interest, in order to
achieve a set of objectives oriented towards
the growth and stability of the country
Objectives of monetary policy
• i) controlled expansion of money supply
• It is needed to restrain the inflationary forces
of the economy. It is essential for growth with
stability which can be achieved through
monetary policy of RBI.
• Ii) sectoral allocation of funds