RESERVE BANK OF INDIA AN

INTRODUCTION

RBI is the central bank of the country.

It is the apex institution of the country's monetary and financial system

It was established on the recommendations of the Hilton young

commission as a body corporate under the RBI act 1934

It plays a leading role in organizing, running, supervising, regulation and

developing the monetary and financial system

The design and conduct of monetary and credit policy are its special

responsibility.

It was in 1948, through the Reserve bank(Transfer of public ownership)

Act, 1948 the entire share capital was acquired by central govt

Its head office located at Mumbai.

ORGANISATION AND MANAGEMENT OF RBI

Central board- The general superintendence and direction of the bank's affairs is in the

hands of central board of directors. It comprises of a governor, four deputy governors

and 15 directors.

Local board- there is a local board with headquarters In Mumbai, kolkata, Delhi and

Chennai for each of the regional areas of the country i.e. east, west, north and south.

METHODS OF CREDIT CONTROL

 TECHNIQUES USED BY RBI

Quantitative or Qualitative methods

general methods

Bank rate open Change in Margin requirements, Regulation of

market operations CRR and consumer credit rationing of credit
SLR direct action moral suasion

MONETARY POLICY

Monetary policy refers to that policy through which the central bank of

the country controls:-

The supply f money

Availability of money and

Cost of money i.e. rate of interest, in order to achieve a set of

objectives oriented towards the growth and stability of the country

Objectives of monetary policy

i) controlled expansion of money supply

It is needed to restrain the inflationary forces of the economy. It is

essential for growth with stability which can be achieved through

monetary policy of RBI.

li) sectoral allocation of funds