2. Agenda Preamble Brief history Governors The key role of the
RBI Monetary authority Regulator and supervisor of the financial
system Manager of foreign exchange Issuer of currency Developmental
role Instruments of credit control Objective and reasons for
establishment of RBI Subsidiaries
3. Central Bank It is a bank of banker -- Samuelson Bank which
has monopoly over note issue -- Vera Smith Central bank is the
governments bank -- Sayers
4. Structure of Banking in India Reserve Bank Commercial Bank
Co-operative Bank -Public Sector Bank -State Co-op bank -Private
Sector bank -Central Co-op Bank -Regional Rural Bank -Primary Co-op
Soc
5. Organizational Structure Governor Deputy Governor Executive
Directors Principal Chief General Manager Chief General Managers
General Managers Deputy General Managers Asstt. General Managers
Managers Asstt Managers Support staff
6. PREAMBLE The preamble of the Reserve Bank of India describe
the basic functions of the Reserve Bank as to regulate the issue of
Bank Notes and keeping of reserve with a view to securing monetary
stability in India and generally to operate the currency and credit
system of the country to its advantage
7. BRIEF HISTORY (1 OF 2) It was set up on the recommendations
of the HILTON YOUNG COMMISSION It was started as Share-Holders Bank
with a paid up capital of 5 Crs It was established on 1st of April
1935 Initially it was located in Kolkata It moved to Mumbai in the
year 1937 Initially it was privately owned It was the 1st bank to
be Nationalized in 1949 It has 22 regional offices, most of them in
state capitals
8. Since nationalization in 1949, the Reserve Bank is fully
owned by the Government of India Its First governor was Sir Osborne
A.Smith(1st April 1935 to 30th June 1937) The First Indian Governor
was Sir Chintaman D.Deshmukh(11th August 1943 to 30th June 1949) On
27th June 2006, the Union Government of India reconstituted the
Central Board of Directors of the Reserve Bank of India(RBI) with
13 Members, including Azim Premji and Kumar Mangalam Birla BRIEF
HISTORY (2 OF 2)
9. GOVERNORS (1 of 2) Sir Osborne A. Smith April 1, 1935 to
June 30, 1937 Sir James Braid Taylor July 1, 1937 to February
17,1943 Sir Chintaman D.Deshmukh August 11, 1943 to June 30,
1949
10. Dr. Bimal Jalan November 22, 1997 to September 5, 2003
Dr.Y.V.Reddy September 6, 2003 to September 5, 2008 Dr. D. Subbarao
September 5, 2008 to September 4, 2011 September 5, 2011 to
September 4, 2013 (close of business) GOVERNORS (2 of 2)
11. Dr. Raghuram Rajan September 4, 2013 (close of business)
onwards
12. THE KEY ROLES OF THE RBI ARE Regulator and supervisor of
the financial system Manager of Exchange control Issuer of currency
Banker to the Government Bank to banks: maintains banking accounts
of the scheduled banks
13. Monetary Authority Formulates, implements and monitors the
monetary policy Objective: maintaining price stability and ensuring
adequate flow of credit to productive sectors Regulator and
supervisor of the financial system: Prescribes broad parameters of
banking operations within which the country's banking and financial
system functions Objective: maintain public confidence in the
system, protect depositors interest and provide cost-effective
banking services to the public Manager of Foreign Exchange Manages
the Foreign Exchange Management Act, 1999. Objective: to facilitate
external trade and payment and promote orderly development and
maintenance of foreign exchange market in India
14. Issuer of Currency Issues and exchanges or destroys
currency and coins not fit for circulation Objective: to give the
public adequate quantity of supplies of currency notes and coins
and in good quality Developmental Role Performs a wide range of
promotional functions to support national objectives Related
Functions Banker to the Government: performs merchant banking
function for the central and the state governments; also acts as
their banker Banker to banks: maintains banking accounts of all
scheduled banks
15. INSTRUMENTS OF CREDIT CONTROL Quantitative or General
Methods Qualitative or Selective Methods Quantitative Qualitative
Bank Rate Selective Credit Control Open Market Rationing of Credit
Operation(OMO) Moral Persuasion Change in Cash Direct Action
Reserve Ratio (CRR) Statutory Liquidity Ratio(SLR) Repo and Reverse
Repo Ratio
16. The main objectives for establishment of RBI as the central
bank of India were as follows : To manage the Monetary and credit
system of the country To stabilize internal and external value of
rupee For balanced and systematic development of banking in the
country For the development of organized money market in the
country For proper arrangement of agriculture finance For proper
arrangement of industrial finance For proper management of public
debt To establish monetary relations with other countries of the
world and international financial institutions For centralization
of cash reserves of commercial banks To maintain balance between
demand and supply of currency OBJECTIVE AND REASONS FOR
ESTABLISHMENT OF RBI
17. Fully owned National Housing bank (NHB) Deposit Insurance
and Credit Guarantee Corporation of India (DICGC) Bharatiya Reserve
Bank Note Mudran Private Limited (BRBNMPL) Major stakes National
Bank For Agriculture and Rural Development (N ABARD) The reserve
Bank of India has recently divested stake in State Bank of India to
the government of India SUBSIDIARIES..!
18. RBI also regulates the opening / installation of ATM RBI
regulates the opening of branches by banks It ensures that all the
N.B.F.C follow the KYC Guidelines Fresh currency notes for ATM are
supplied by RBI Banker to the Government: Performs all banking
function for the central and state governments and also act as
their banker The reserve bank of India also regulates the trade of
gold. Currently 17 banks are involved in the trade of gold in India
RBI has invited applications from more banks for direct import of
gold to curb illegal trade in gold and increase competition in the
market It issues guidelines and directions for the commercial banks
Related Functions
19. Conclusion Central bank plays important role in achieving
economic growth of a developing country It promotes economic growth
with stability It helps in attaining full employment balance of
payment disequilibrium and in stabilizing exchange rate RBI is an
autonomous body promoted by the government of India and is
headquartered at Mumbai RBI is an autonomous body promoted by the
government of India and is headquartered at Mumbai treasury foreign
exchange movements and is also the primary regulator for banking
and non- banking financial institutions The RBI operates a number
of government mints that produce currency and coins
20. RBI Websites RBI Bulletin..www.bulletin.rbi.org.in RBI
Annual Report....www.annualreport.rbi.org.in Weekly Statistical
Supplement...www.wss.rbi.org.in Monetary and Credit
Policy.www.cpolicy.rbi.org.in RBI
Notifications.www.notifics.rbi.org.in RBI Press
Release.www.pr.rbi.org.in RBI Speecheswww.speeches.rbi.org.in
Monetary and credit Information Reviewwww.mcir.rbi.org.in Report on
Trend and Progress of Banking..www.bankreport.rbi.org.in
23. BRICS BRICS stand for Brazil, Russia, India, China &
South Africa. Came into existence in the year 2001 as BRICNATIONS.
BRICS is international political organization of leading emerging
economies its Five members are all developing industrialized
countries. Biggest and fastest growing emerging economies Term BRIC
was first prominently used in a Goldman Sachs report from
2003.
24. South Africa has been asked to join the BRIC group of major
emerging markets. Officially admitted as a BRIC nation on December
24, 2010 South Africa stands at a unique position to influence
African economic growth and investment
25. Cont China is South Africas largest trading partner India
wants to increase commercial ties with Africa South Africa brought
into BRIC "not only South Africa but a larger African market of a
billion people,"
26. Objectives of BRICS 1-To achieve regional development 2-To
remove trade barriers. 3-Economic development. 4-Optimum use of
resources. 5-Builiding relationship.
27. BRICS Summit The BRIC countries met for their first
official summit on 16 June 2009, in Yekaterinburg, Russia.
Discussed the current global financial crisis, global development,
and further strengthening of the BRICS group. Issued a joint
statement on global food security, calling for "action by all
governments
28. Cont Attacked the role of dollar as the primary
international currency & suggested new global reserve currency
that is 'diversified, stable and predictable'. 2nd BRIC summit held
on April 16, 2010 Brazil 3rd BRICS summit held on April 14, 2011
china
29. The Fourth BRICS Summit was hosted in New Delhi on 29 March
2012 under the theme of BRICS Partnership for Global Stability,
Security and Prosperity. The Summit has imparted further momentum
to the BRICS process of planning a joint development bank.
30. Dreaming with BRICS: The Path to 2050 Already BRICS
accounts for: 40 per cent of the world's population, 25.9 per cent
of its total geographic area, 40 per cent of global GDP By 2050,
BRICS countries expected to accounts for over 40% of the worlds
population and 60% of global GDP.
31. Cont BRICS could be larger economies than the united states
and the developed economies of Europe within 40 years . China and
India will become worlds dominant suppliers manufactured goods and
services Brazil and Russia will become dominant suppliers raw
materials
32. BRAZIL KEYADVANTAGES One of the fastest growing economies
in the last century Brazilian economy becoming less dependent on
exports Extremely rich in resources such as coffee, sugarcane, iron
, and crude oil etc
33. Cont. Focus on equitable development has resulted in
significant poverty reduction Challenges for the Future
Overburdened and ineffective judicial system Industrial output is
weak
34. RUSSIA KEY ADVANTAGES Russia has capability in
high-technology sectors Accounts for around 20% of the worlds oil
and gas reserves fall in the number of people living below the
poverty line
35. Cont Challenges for the Future Labor shortages and poorly
developed infrastructure Corruption
36. INDIA Key Advantages 1.15 billion people 2nd largest labor
force Approximately 2.5 million college graduates per year
37. Cont.. Challenges for the Future Improving basic
educational achievement Improving infrastructure and electrical
capacity Expanding technology industry
38. CHINA Key Advantages Broad expansion of educational
achievement Rapid economic growth Third largest country in land
size
39. Cont Challenges for the Future support to rural areas and
less-developed regions. Bank of China sees inflation as a bigger
risk . Need to improve the investment
40. South Africa KEY ADVANTAGE The South African economy is now
the 23rd largest in the world Inflation is now below 5% and
falling. 25% of goods produced in South Africa are for export
41. Cont Challenges: The economy is growing but not fast enough
Lack of skills, particularly in IT. 48% of the population is living
below the poverty line
42. Recession & Brics The global financial meltdown of 2008
has not left the economies of Brazil, Russia, India, China &
south Africa known as the BRICS club injured. As the developed
world faces recession, BRICS growth is inevitably set to slow. Yet
strong foreign exchange reserves and growing domestic demand has
allowed BRICS to with stand the crisis and continue growing,
strengthening their position as a major consumer market.
43. Financial contribution India has provided loans of more
than $200million to the African countries since 2009. China has
invested almost $4000 million as foreign direct investment. Russia
too has contributed more than $3000million as FDI Brazil has
invested around $4000 million in Africa.
44. Strengths After a decade of growth, BRICS economies have
built up strong consumer demand, which could take the lead as the
prime engine for growth. All BRICS countries have accumulated high
levels of foreign exchange reserves. foreign exchange reserves will
allow governments to boost public spending in order to support the
economy. This could take the form of social benefits to encourage
consumers to spend more
45. Opportunities Inclusive growth BRICS economies could become
a much larger force in the world economy. The BRICS real exchange
rates could appreciate by up to 300% over the next 50 years BRICS
maintain policies and develop
46. BRICS NATIONS FUTURE BANK BRICS nations are going to
develop a joint bank within the BRICS nations for assistant them
self, And to meet the following reasons:
47. Cont o Growing emerging markets. o Climate change, food and
energy security, o International economic exchange. o Financial
assistant. o Populations control
48. Market analysis The concept of a joint development bank
within BRICS nations whether its needed to establish.? YES its need
full Thought. 1-GDP growth rate in BRICS nations is higher
2-Massive marketing opportunities. 3-Service sector contribution.
4-Human resources using.
49. SWOT Analysis Strength of the BRICS nations 1- To use
resources. 2-Market opportunities. 3-Economic developments.
Weakness of the BRICS nations 1- Population problem. 2- lack of
Infrastructure. 3- Decreasing GDP growth rate.
50. Cont Opportunities of the BRICS nations 1- To expand the
market. 2- Regional development. 3-Monetry resources. Threats of
the BRICS nations 1-Financial crises. 2- Threats from other unions.
3-dollar role
51. Criticism The BRICS dream isnt green. Nothing more than a
neat acronym for the five largest emerging market economies. A
criticism is that the BRICS projections are based on the
assumptions that resources are limitless and endlessly available
when needed
52. Cont. BRICS doesnt have a concrete and constructive agenda
for change or vision for a future world order. China is the muscle
of the group and the Chinese know it. They have effective veto
power over any BRICS initiatives
53. Conclusion The BRICS have come together in a political
grouping in a way that has far exceeded most expectations. Although
BRICS cooperation has been significant, intra-BRIC competition and
rivalry are important
54. cont. BRICS nations have the potential and the resources to
form a powerful economy with greater opportunity than any other
nation The BRICS are becoming super powers. Whether they would
surpass the expectations lying on them is something that we can
only speculate on. But it is no doubt, that they have become more
important today than before more rests on their growth rather than
on the growth of the previously bigger powers of the world.
