FUNCTIONS AND ROLES OF RESERVE BANK OF INDIA

AADITYA GARG ABHISHEK DWIVEDI AHMAD ANSARI AKANKSHA MISHRA

ABOUT THE RESERVE BANK OF INDIA

Reserve Bank of India is central bank of the country. It was established in 1935 with the share capital of 5 crores on the bases of recommendation by Hilton Young commission. RBI was nationalized in 1949.

At present Dr. D. Subbarao is working as the Governor of RBI.

STRUCTURE OF RBI
The general superintendence and direction of the bank is entrusted to central board of directors of 20 members, one Governor and four deputy Governors, one government official from the ministry of finance, ten nominated directors by the Government to the representation of important economical element in the economic life of the country and four nominated Directors by the central Government to represent the four local boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi.

Local Boards consists of five members each central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous bank.

 The RBI act, 1934 was commenced on April 1 1935, the act 1934 (II on 1934) provides the statutory basis of the functioning of the bank.
To regulate the issue of banknotes. To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.

FUNCTIONS OF RBI
Bank of Issue:- under section 22 of the RBI act, the bank has to sole right to issue Bank notes but the issue of one rupee coin and note is concerned to the Ministry of Finance. Bankers of Government:- It works as Banker agent and advisor of the government. Bankers Bank and lender of the last resort:- It provides loan to banks and government.

Controller of credit:- It has the power to influence the volume of credit created by banks in India.

 Custodian of foreign Reserves:- After India become a member of international monetary fund in 1946 the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the IMF. Supervisory Functions:- The reserve bank has certain non-monetary functions of the nature of supervision of banks and pramotion of sound banking in India.

 Promotional Functions:- Reserve Bank has responsibility to promote banking habit, extend banking facilities to rural and semi urban areas.

ROLE OF RBI
The RBI is an umbrella network for numerous activities, all related to the nations financial sector, encompassing and extending beyond the functions of a typical central bank, this sector provides overview of our primary activities. Provision of Finance

Promotional activities
Issuer of currency

 Banker and Debt Manager to Government

Banker to banks
Regulator of Banking system

Manager of Foreign Exchange

Regulator and supervisor of the Payment and Settlement system. Developmental Role

 Formulate Monetary Policies Quantitative measures such as Bank Rate, Variable reserve Ratio, Open Market Operations. RBI also Regulates the Installation and opening of ATMs. Collection and Publication of Data.

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