EVOUTION OF RBI ORGANISATION STRUCTURE OF RBI ROLES n FUNCTIONS NARASIMHAN COMMITTEE RECOMMEDATIONS

RBI was established as a body corporate under the Reservre Bank of India Act RBI was came in to effect from 1st April 1935 RBI was nationalised in 1949

Governor
Deputy governor Executive directior Chief manager Chief accountant

1. 2. 3. 4. 5.

Promotion of commercial banking Promotion of rural credit Development of Bill market Exchange controls Promotion of industrial finance

Central banking functions 2. Supervisory functions 3. Promotional functions

1.

1969- Banks Nationalization E ffects Phenomenal increase in the geographical coverage of our banking and financial institutions. Despite impressive quantitative achievement- low efficiency and productivity, bad portfolios performance, and eroded profitability. Several public sector banks and financial institutions were incurring losses year after year

1991 -RBI proposed the committee chaired by M. Narasimham, former RBI Governor to review the Financial System

Review- aspects relating to the Structure, Organization, Procedures and Functioning of the financial system

Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector
T he Narasimham Committee laid the foundation for the reformation of the Indian banking sector

Reduction of Statutory Liquidity Ratio (SLR) to 25 per cent over a period of five years P rogressive reduction in Cash Reserve Ratio (CRR) to 3-5% P hasing out direct credit programs and redefining the priority sector S etting the capital adequacy ratio (CAR) to 8 percent by March 1996

Opening of More Pvt. sector banks M otivation foreign banks to expand their network by opening new branches D eregulation of RBI and Finance ministry of India. Making RBI as a regulator of all Banks and let Banks takes participation in equity market with govt. stake of 51% O ther Regulation introduced by RBI include Asset classification ,NPA ratio

Corporate Governance : promoting customer relations and office culture A sset Reconstruction for bringing down NPA in future R isk Management C DR E-Banking and VRS

PRESENTED BY: MISS BINDU