Reserve Bank of India (RBI)
An Overview of India's Central Bank
Introduction to RBI
• - Established: April 1, 1935
• - Nationalized: 1949
• - Headquarters: Mumbai, India
• - Governs monetary policy and banking system
• - Regulates financial stability and currency
issuance
Functions of RBI
• - Monetary policy formulation
• - Issuance and regulation of currency
• - Regulation of banks and NBFCs
• - Maintaining financial stability
• - Foreign exchange management
• - Consumer protection and financial inclusion
Monetary Policy Tools
• - Repo Rate & Reverse Repo Rate
• - Cash Reserve Ratio (CRR)
• - Statutory Liquidity Ratio (SLR)
• - Open Market Operations (OMO)
• - Marginal Standing Facility (MSF)
Regulation of Banks and NBFCs
• - Issues banking licenses
• - Regulates and supervises commercial banks
• - Governs Non-Banking Financial Companies
(NBFCs)
• - Ensures financial stability and compliance
with banking laws
Financial Inclusion & Digital
Initiatives
• - Promotes financial inclusion (Jan Dhan
Yojana, PMMY)
• - Digital payments: UPI, RTGS, NEFT
• - Introduced e-Rupee (CBDC) for digital
transactions
• - Strengthening cybersecurity in banking
Role in Economic Development
• - Controls inflation and ensures price stability
• - Provides liquidity support during crises
• - Supports economic growth through policy
measures
• - Manages foreign exchange and external
trade policies
Challenges Faced by RBI
• - Balancing inflation and growth
• - Managing Non-Performing Assets (NPAs)
• - Addressing cybersecurity risks
• - Adapting to technological advancements
• - Strengthening financial literacy and inclusion
Conclusion
• - RBI plays a crucial role in India's financial
stability
• - Regulates banks and ensures smooth
economic growth
• - Adapting to digital transformation and global
challenges
• - Continues to evolve as India's financial
guardian