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
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