Submitted by--Megha Shrimankar B-38

RBI Changes in RBI policy

since Raghu ram Rajan
appointed as Governor

Introduction
The central bank of the country--Reserve Bank of India (RBI).
Established in 1st April 1935
Initially it was located in Kolkata
It was set up on the recommendations of Hilton Young Commission
It was started as Share-Holders Bank with a share capital of Rs. 5 corers.
The share capital was divided into shares of Rs. 100 each fully paid up
which was entirely owned by private shareholders in the beginning.
Reserve Bank of India was nationalized in the year 1949

1935

Operations begin on April 1

1949

Nationalisation of the Reserve Bank; Banking Regulation

Act Enacted

1966

Cooperative banks come under RBI Regulation

1969

Nationalisation of 14 major commercial banks (six more

were nationalised in 1980

1973

RBI strengthens exchange controls by amending Foreign

Exchange
Regulation Act

1975

Regional Rural Banks set up

1991

India faces balance of payment crisis; pledges gold to

shore up reserves. Rupee Devalued

2000

Foreign Exchange Management Act replacesFERA

2002

Clearing Corporation of India Limited (CCIL) commences

clearing and
settlement in government Security

2005

Focus on financial inclusion and increasing the outreach

of the banking
Sector

2006

RBI empowered to regulate money, forex, G-sec and gold

Functions of RBI
Issue of currency
Development role
Banker to government
Banker to bank
Role of RBI in inflation control
Formulate monetary policy
Manager of foreign reserve
Clearing house functions
Regulations of banking system

Policy Rates, Reserve Ratios, Lending and Deposit Rates as of August 8, 2014
Bank Rate

9%

Repo Rate

8%

Reverse Repo Rate

7%

Cash Reserve Ratio (CRR)

4%

Statutory Liquidity Ratio (SLR)

Base Rate
Savings Deposit Rate
Term Deposit Rate

22.00%
10% 10.25%
4%
8%9.5%

GOVERNORS OF THE RBI

Sir James Braid
Taylor
July 1, 1937 to
February 17,1943

K.R. Puri
August 20,
1975 to May 2,
1977
M. Narasimham
May 2, 1977 to
November 30, 1977
Dr. I.G.Patel
December 1, 1977 to
September 15, 1982
Dr. Manmohan
Singh
September 16, 1982
to January 14, 1985
A. Ghosh
January 15, 1985 to
February 4, 1985

Sir Osborne A.
Smith
April 1, 1935 to
June 30, 1937
R.N. Malhotra
February 04,1985 to
December 22, 1990

Dr.Y.V.Reddy
September 6, 2003 to
September 5, 2008

S.Venkitaramanan Dr. D. Subbarao

December 22, 1990 to September 5, 2008 to
September 4, 2011
December 21, 1992
September 5, 2011 to
September 4, 2013
Dr. C.Rangarajan
December 22, 1995 to (close of business)
November 22, 1997
December 22, 1992 to
December 21, 1995
Dr. Bimal Jalan
November 22, 1997 to
September 5, 2003

Dr. Raghuram
Rajan
September 4, 2013
(close of business)
onwards

Governor of RBI
Raghuram Rajan is the 23rd governor of the Reserve Bank of India
Mr. Rajan's second assignment in the country. He was appointed the Chief
Economic Adviser to the Finance Ministry in August last year.
Mr. Rajan's claim to fame is his prediction of the 2008 global financial
crisis.
Mr. Rajan has worked as the Eric J. Gleacher Distinguished Service
Professor of Finance at the University of Chicago's Booth School of
Business.

 In January 2003, the American Finance Association awarded Mr. Rajan the
inaugural Fischer Black Prize, given every two years to the financial
economist under age 40 who has made the most significant contribution to
the theory and practice of finance.
He is the author of the popular book Fault Lines: How Hidden Fractures
Still Threaten the World Economy

Potential Leader
Step up and be firm
Lean on predecessors and strong team mates
Think Straight - details and people
Acknowledge the tough choices but not dwell on them
Look ahead - plan for the years beyond the current doldrums

5 Pillars Policy
Pillar 1: Monetary policy framework.
Pillar 2: Reform Indias banking system.
Pillar 3: Liberalizing Indian markets.
Pillar 4: Financial inclusion.
Pillar 5: Dealing with financial distress

Credit policy of RBI

War on inflation is back
Worst over for rupee
Fix the internal macro-economic issues
RBIs biggest concerns
Growth expectations brightening
RBI measures impact
Home loan, auto loans likely to rise