The reserve bank of india is the central bank of india entrusted with the multidimensional role. The function of the central bank of a country is to control and monitor the. A core function of the reserve bank in the last 75 years has been the. What are the main functions of state bank of india. Latest rbi functions and working information 2020 ebook pdf free. It is one of the main governing body and regulatory body in india and helps the government in its role as a business facilitator. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The affairs of sebi are managed by various departments and regional offices. The preamble of the reserve bank of india describes the basic functions of the reserve bank as.
The increasing importance of the reserve bank of india. What are the main functions of reserve bank of india. The reserve bank of india was established in the year 1935 in accordance with the reserve bank of india act, 1934. Functions and structure of reserve bank of india reserve bank of india was established on 1st april, 1935 under reserve bank of india act, 1934 it was established as a shareholders bank with paid up capital of rs. Reserve bank of india functions and powers bankexamstoday. Basically these functions are in line with the objectives with which the bank is set up. The governor is the reserve bank s chief executive.
An increase in this ratio will eventually lead to considerable decrease in the money supply. Download pdf of rbi s structure, management and functions for banking awareness exam such as rbi exams and for various bank exams. They function just the same way as any other bankrun atm. Lesson 15 banking national institute of open schooling. The reserve bank of india is the central bank of india, which means it is at the apex of the banking structure of the economy. It performs the four basic functions such as planning, organizing, directing and controlling in laying a strong foundation for the functioning of commercial banks. The core structure of rbi includes one central board of directors, two assistive bodies bfs and bpss, four local boards, 33 departments, 19 regional offices and 9 suboffices. The rbi as the leader of the indian money market and as the indias central bank performs the following useful functions. Banker to the governmentthe second important function of the. Rbi regulates commercial banks and nonbanking finance companies working in india. It has constituted various committees from time to time to efficiently manage the working and development of securities market. Rbi supervises the functioning of formal source of loans. When the rbi was established, it took over the functions of currency issue from the government of india and the power of credit control from the then imperial bank of india. These are banks where majority stake is held by the government of india or reserve bank of india.
In this role, the rbi focuses on the development and functioning of safe. However, as the overseer of indias monetary policy, the bank performs several other functions that are important to the. The reserve bank of india accepts and makes payment on behalf of central government. The note issue in india was originally based upon proportional reserve. It serves as the leader of the banking system and the money market. In this video, we have covered all the basic things about rbi that all the banking aspirants should know about. Rbi plays an important part in the development strategy of the government of india. It also sees that banks give loans not just for profit making and traders but. Supervisory and regulatory function of the rbi rbi is vested with a wide range of functions and responsibilities. All about rbi general awareness all competitive exams. The reserve bank of india rbi is the central bank in india.
Key functions of rbi are, bankers bank, the custodian of foreign reserve. Established in 1935 under the rbi act 1934, the main object was to regulate the issue of bank notes and the keeping of reserves to secure monetary stability in india and to operate the currency and credit system of the country to its. The rbi carries out indias monetary policy and exercis. Rbi gk questionsgeneral knowledge questions and answers updated on apr 2020 171488. Important general knowledge questions about reserve bank of india rbi. It was established with the objective of ensuring monetary stability and operating the currency and credit system of the country to its advantage. For smooth and speedy progress of the indian financial system, it has to perform some important tasks. It regulates money supply and credit in the country. The reserve bank of india influences the management of commercial banks through its various policies, directions and regulations. Traditional functions of rbi traditional functions are those functions which every central bank of each nation performs all over the world. The core function of the rbi is to set the lending rate between banks. Reserve bank of india rbi established in 1935 and nationalised on jaunary1, 1949 is responsible for printing and supply of currency in india. Rbi functions and working information ebook download.
The governor supervises and directs the affairs and business of the rbi. Rbi issues currency notes on behalf of the central govt. The reserve bank of india is the central bank of the country. There are various factors that influence and control indian economy, one such being, the rbi, one of the oldest institution behind the success of our economy. The reserve bank of india rbi is the central bank for india. Rbi can exchange these currency notes for other denominations. Rbi is the queen bee of the indian financial system which influences the. Download rbi banking awareness concepts for bank exams. Acting as noteissuing authority the authority for the issuance of currency o. Page 1 principles and practices of banking reserve bank of india rbi in every country there is one organization which works as the central bank. Rbi monitors the banks in actually maintaining cash balance. An important role and function of rbi is to maintain the banking accounts of all scheduled banks and acts as the banker of last resort.
Functions of rbi the indias central bank list v as a central bank, the reserve bank has significant powers and duties to perform. Main and basic need remains with industrial houses to meet their working capital requirements of short periods. Banking awareness important roles and functions of rbi history of rbi. As a developmental function, rbi promotes various specialized institutions. To regulate the activities of stock exchange following functions are performed. Functions of reserve bank of india rbi rbi credit policy. Pdf download pdf of rbis structure, management and. Rbi gk questionsgeneral knowledge questions and answers 171488. Rbi is the queen bee of the indian financial system which influences the commercial banks management in more than one way. The reserve bank of india rbi is indias central bank, which controls the issue and supply of. Download pdf of rbis structure, management and functions for.
The sbi acts as agent of the rbi at the places where the rbi has no branch. It refers to the minimum amount of funds in cash decided by the rbi that a commercial bank has to maintain with the reserve bank of india, in the form of deposits. The functions of sebi include regulation, development and promotion of securities market in india. In terms of section 22 of the reserve bank of india act, the rbi has been given the statutory function of note issue on a monopoly basis. This concentration of notes issue function with the reserve bank has a number of advantages. India is one of the fastest growing economies in the world, with a population over 1. It carries out its exchange, remittance, management of public debt and other banking function of the central government. The functions of sbi can be grouped under two categories, viz. Rbi issues these currency notes 2, 5, 10, 20, 50, 100, 500, against the security of gold bullion, foreign securities, rupee. Rbi gk questionsgeneral knowledge questions and answers. Rbi was set up on the basis of the recommendations of the hilton young commission. The rbi handles many functions, from handling monetary policy to issuing currency. Download pdf of rbis structure, management and functions.
These functions are performed by sebi to regulate the business in stock exchange. The reserve bank of india rbi is the apex financial institution of the countrys financial system entrusted with the task of control, supervision, promotion, development and planning. The reserve bank of india is indias central bank, which controls the issue and supply of the indian rupee. Functions of sebi securities and exchange board of india. As per the provisions of the section 22 of the reserve bank of india act 1934 the rbi has sole right or authority to issue currency notes except one rupee note and coins of smaller denomination. To work as monetary authority and implement its monetary policy. The rbi functions on the traditional lines regarding the following activities. Role of reserve bank of india in indian economy research india. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Read this article to learn about the various functions of rbi reserve bank of india in a detailed and pointwise manner in india, the reserve bank does not only have to do traditional work of the central bank but due to india being rudimentary country, the development work of. It delegates specific functions to the local boards and various committees. Banking awareness important roles and functions of rbi. In india the reserve bank of india is the sole authority to regulate all financial and economic matters. Reserve bank of india act, 1934 ii of 1934 provides the statutory basis of the functioning of the bank, which commenced operations on april 1, 1935.
145 408 1474 1395 1288 752 350 1059 1469 940 622 222 602 1475 1344 1323 531 1257 621 165 876 830 1432 284 774 45 1345 1539 1381 1320 1043 303 185 1294 1020 982 353 476 1385 570 1409