Reserve Bank of India (RBI)

IntroductionRBI

The Central Bank of India Need for bank to be constituted Issue of bank notes Reserves with a view to security monetary stability Credit and Currency system at the country to its advantage

Organisational Structure of RBI

ROLES AND FUNCTIONS OF RBI

SUMMARYROLES 1. Price stability 3. Encourage growth 5. Financial stability 7. Development of financial infrastructure 5. Regulate the overall volume of money and credit 6. Lender of last resort 7. Note issuing authority 8. Bankers bank AND FUNCTIONS 9. Supervising authority

Monetary policy 10. Regulator of money and credit 11. Exchange control authority

Credit Control Methods

Need: To

encourage the priority sectors for overall growth. the flow of adequate volume of bank credit to its industry, agriculture and trade. keep Inflation pressure under check.

Facilitate

To To To

ensure that Credit is not diverted to undesirable purposes. facilitate the Development of Indian economic growth.

Types of credit control :Quantitative

Method Qualitative Method

Quantitative MethodsBank Open

rate policy Market operation of cash reserve ratio

Variation Fixation

of lending rate

Qualitative MethodsFixation

of Margin Requirement of consumer credit

Regulation Rationing Prior

of credit

authorisation of schemes Action

Direct