CIA-3

Roles & powers of

Reserve Bank of India
and its execution
through technological
platforms
Submitted to – Prof. Nijumon K John
Submitted by – Dhruv Thapar (2220943)
Akarsh Agarwal (2220932)
Lakshay Lashkari (2220907)
 Reserve Bank of India
According to the provisions of the Reserve Bank of India
Act, 1934, the Reserve Bank of India was established on
April 1, 1935. The Reserve Bank's Central Office was
initially located in Kolkata but was permanently relocated
to Mumbai in 1937. The Governor sits in the Central
Office, where policies are developed. Though originally
privately owned, the Reserve Bank has been totally owned
by the Government of India since its nationalisation in
1949.
Roles of RBI
 Powers of RBI…

1) Monetary Authority:
Formulates, implements and monitors monetary policy.
Objective: Maintain price stability while taking into account growth
targets.

2) Financial system regulators and supervisors:

It defines a wide range of banking parameters in which the country's banking and financial system operates.
Purpose: To maintain public confidence in the system, protect the interests of depositors, and provide cost-
effective banking services to the public.

3) Forex manager - Governing the Foreign Exchange Control Act 1999.

Purpose: To facilitate foreign trade and payments, and promote the orderly development and maintenance of
the foreign exchange market in India.
4) Currency Issuer:
It issues, exchanges and destroys banknotes and circulates coins issued by the
Government of India. Purpose: To provide the public with sufficient quantity and
quality of banknotes and coins. role of development Perform a wide range of
advertising functions to support national goals.

5) Payment system regulators and supervisors: Introduce and improve safe and
efficient payment systems in the country to meet the needs of the general public.
Objective: Maintain public trust in payment systems Related functions

6) Government Bankers: Perform commercial banking functions for central and

state governments. It also serves as their bunker.

7) Banker to Banks: Maintain bank accounts for all proposed banks.

Technological platforms used by RBI

PRISM:
The Reserve Bank of India (RBI) is putting in place a Platform for
Regulated Entities for Integrated Supervision and Monitoring
(PRISM), a web-based end-to-end workflow automation system, to
strengthen compliance by supervised entities (SEs).
 Distributed Ledger Technology, Blockchain and Central
Banks:
Distributed Ledger Technology (DLT) and blockchain have developed considerably in features and complexity to
offer solutions to various industries including the financial sector. Some central banks have undertaken pilot
projects to study and understand DLT and explore the potential benefits for their operations and the financial
systems. So far most of these projects have been experimental in nature to explore the viability of conducting
inter-bank settlements, settlement of digital assets and tokens and cross-border payments across DLT
platforms with functionalities of the existing system. In the Indian context, increasing support from the Reserve
Bank of India and the Government of India for innovations and emerging technologies through regulatory
sandbox and various other schemes would pave the way for the new economy, enriched with technology-
centric growth momentum.