RESERVE BANK

OF
INDIA
Why RBI ?
o Regulate the issue of banknotes .
o Maintain reserves with a view to securing monetary
stability and
o To operate the credit and currency system of the
country to its advantage.
Central board of directors

Local boards

Offices of RBI Organization of RBI

ROLE OF RBI
oIssue of currency notes.
RBI has separate department for this purpose i.e
issuing department.
The basis of note issue is minimum reserve system.
In 2007-08 (june-july) RBI allocated Rs. 2026 crore
and the number of units is 1393 crore
RBI acts as

Agent
Banker

Advisor

GOVERNMENT
RBI IS
oBanker’s bank

oCustodian of Foreign Exchange

Reserves.
Regulation of banking system

Licensing-section 22
Management - section 10
Branch expansion-section 35
Credit control
o Objectives of credit control
To obtain stability money market.
To attain stability in exchange rate.
To meet financial requirements of an economy not
only during normal times but also during emergency
or war.
To help the economic growth of a country within
specified period of time..
Methods and Instruments of credit control

Bank rate
Repo rate and
reverse repo
rate

CRR
Quantitativ
e methods

SLR

OMO
 Moral Direct
persuasion action

Rationing Qualitativ
of credit e methods

Selective
credit control
Current rates
Reserve
Policy rates
ratio’s
●
Bank rate-6.0%
●
Repo rate-4.75% ●
CRR-5.0%
●
Reverse repo ●
SLR-25.0%
rate-3.25%