Banasthali vidyapith

Course BCOM 2ND YEAR

(3RD SEMESTER)

1st Assignment
of
Principles and Practices of Banking

Topic:Role Of RBI In Economic

And Social DevelopmentOfIndia

Submitted By:
Ritika Aggarwal(2014656)
Sara Singh (2014657)
Kumari Shikha (2014663)
Sheeva Gupta (2014580)
Rupal Sharma (2014651)

Submitted To
Ms.Pawandeep Kaur Bindra
 DATE IO
PAGE MAMA

LNTRODUC TTON
lhe Reserve Bank_of TndiaRBI Was_es.tablishe
in theYear 1935 in accoxdance the Res-
ewe Bank ofE Zndia Act,1934 The Kesenve BaakK
lof India the Cenhal Bank of Tndia _entsus.ed
ihhe mulhidiminsianal1ole.
T Pexthxns imbtant monakxry hunchons mm iss=
ue ofCunency noe a maimknance emmeaxy
Istabilily in he Caunty Tnihially he Rasave Bank-
af Tndia wWas a Pivae_ Shatte halda's mbany
Combamy hthich ulas naiinalized in 13u9 THisa
aiys_ane goexned by he CentalBaatd a
Directas akhainted bygavennmAnt o Tndia
SinceIk incehmon he Bank_& India
had -playedan imboxtant_Aolein ecanamic
had
derelepnamt. Omd mmetanyStabillity in the Cay-
-n

tvoLUZZON ABT
The Koyal Commission nIndian _Cunency amd
Einanceapbainled Augudt_25, 125 has Sugg-
Sted the establishment h e Cenhal Bank in-
Tndia,laten the TndionCenalBankimgenuiK
 DATE DO0
PAGE U MAMA
Commitlee931 stessed _establishmant ot he cenkalL
Bank in India.
The ReseHe Bank hlas establkshed mApxil1,19.35
undn Raaeve Bank_ot Inda Act 1934L he main
aim ohiecthiveotKeboHVeBank Tndia is
to tegulate LSSl_ot_ Bank_nokes and the_keebing
toAAHVees with_a vieuw b aecuung mmetary Stakliky
in Tndia and gmikally o opexae cunxency ond au
CatditSysem a Coualhyo its advandage
The
Tha AOSAAVe Bank a Tnalia as_established as a
privaeShanehaldanis_bank.
Ihe Celnal oice ot RaboHve Bank e Thdia alas
inihallylacaledin Calcutt whichlas lak shitid
o Bambay. The bank issuad ist its uxeny4
notes inJanua 1938in demminatm Rs.6,
LOmd RS. 10 and latiin Samme yea demminalim
Rs.loo Rsloao 0nd Rs.laoa0

OS JLNDE PENDENCE
The
The KosoHve Bank of ndia Jalas nallonalizedd
in theyea 1949 thsaugh theRabeve Bomk Act
138 amd allShates alee ambharnedto Cemltal
novexnmint Zhe RabiHve Bamk 04 India is_Cms-
Hhkd4o managemint Cuem and a
Cannyng he buaines.s bamking n acCox.comce
hxovisim he. Act
 DATE LOOO
PAGE MAMA

T is_o body Coxbaxalehaving benbehual. Su-.

-CCes.sLOmCommon Sealamd Can be Suedax
Su in name Ihegehexal Supeuision and
divectim of the_atfains of ReseaveBank ot In-
-dia is entus.ted withCental Baaxd at Diuechxs.

KOLE U NBL. L
tCONOMTC EVETOPPENT
he Central Bank in a develabing econ.omy
bendaxmss haditional amd nan-tiadihianal func-
hians beranmedby it aue monoaly ot nate
isSuebankex_ the oVemment,bankex's bank,
lenda of last esart Contalle_ CXedit and
naintauning Stable exchang 1ale.
But al
allI these tunctims Aelatedta the
Hoxemost funcian a l i n s in theeconamic.
develobmant the the Counto
The Centtal
Bank n adavelabing Cauny
like- India ms at he bxomoian omd
maiaTainance a isingleveL_ braduchim-
lembloymsmt amnd Htalincme in the_ Caun
 DATE 0
PAGE
The CeTtal Bamks in he mauamy Uda
douelebedCALuueshave heomiven wlde
aomate gtAuth ucheLonamies They,he-
xejoaepeLoa the tallauling funchms tauaHds
this end

1.Cxealuon and expan3Lm stinancial Tnshuins.

2Prabe adustmant betueen damand ar ond l y
ot mme
3A Suitable hlenestRata palicy
.Debt Monagentaat
5 Czedit Camlzol
6.Solving the baance Paymantxoblem
 DAIE
PAGE NO.

Ceeation And Exbaneton

OPindNtiaL INsihatons
in an ndidaeiahadLoune A ta

M bAmRs Aad namcial iaatitaions

AnonSaadiaciltieD Amd to dtAnT

camnudb LinAnct.al nttuiena Aa

CAunkiinOmdnartda CkLdit acRts_

adad Commingal kouALD

n dons to koma dy taingta Csmba

6Ama Uhauld elend "baaman bamning t
kal.antan a manL Cudlr aualLabla.to
asan dmalL businabmaa aAdhadud

commancfoA bamna aAtdo onl dhoat

 OATE
PAGE NO.

OnL
Th Ony uJo
o&tty n- extsren
o n k i r d t u uko
st telog chal
ha hold e the RALaQL monandird

n a Lniltukanal Annamnands
adby ta CAndal bom inaafe

dktaaondt nakierh CO-kana

Slmllanl 4k coa balp the ttaisbmun

ALead bamnhamd taaAuQ Boam
cASK adites to manQina Jonmand

tnduskRa bomlab. and tnadialL

 DATE
pAGE NO

Amd dmal tnduates .

o Hdtustmint betsein Demand

o ond $upply Marndy
h camdia bAm lousAm imparxamt
eltnbnnaRnoabskapraku
Adumamt ba midimamdsu amd
Sul o mantAn umhalAma ksam

ndushial p£ducan Amd anfci

 DATE
pAGE NO.

mema ou ton
h dumamd

So th lochsd Lo meni
h a s z to bo mAn tham
paltJuitt
panaloncat to thi lomiOL
n tha

hind la ho
Enkakon na h
ihAesd ctnchaaALdmeniy ukl

ataq nlaadn

RConamaj tha amxkaL hAm hould

aeng iitmamtad beduco

adutse
 DATE
FAGE NO

A Suitakl Tntthiar Rat fotey

In am UndaudauLsad. csunkyt

dsponitias bitusm long-tnmAmd

ALh bsth priuase Amd bublic

RnLAKnss in Am wndindiueload
RLonomy

A Lss lnkai ka lAg thanajeni,lbaundlal

n neaunaotnnpniua uaatmat La
AgRCsunalAmA Induatu $incL in
wndanduet.afatdcAuahias Kuuiasslmsa

aom the c t t a i manht le punpadeb

AEnusKmank Amd thiy id bennsLu
 DArE

PAGE N a

ALos tntndad
au nCewageÄq p u h l
pali
tnstuub Lo
Lu
L n N L X m s m t Aaonay polReyX Mak
hiupb tha
6 a a u i n g ehuap
pubiicdsbt la,
auatic.
Eaamcing conti
darolobmum

n Gndiu.u diAcsunAgL ta
Giciy lnto dbaeuloiuebonnLing

Amd Lnslestmam the CAnhal bOma

dissaiminatnuy inatnitath, Chani

wneaoduckue eamb Amd las A0tta

CAunHio:
 DATE

PAGE NO

Lare Im h ConkeK LConom

aaRtab.k1he tasua o mony a

Amd ta preeimalty tD AauL dacilne
ndain an sondlRonA kacoma tig

LatnibK ta {lAL Atomaticol 4hi

Juauid AAdk In inlltian La ich O
sLAsioA Amy ea to Cono
d brdësastiau A *abli anleL

AucCaAb oaLau laknut Aa polie

hich cám 6i mainKainsd by Jalloutn
O dk cloun pallcay ba the nkal
hom monatday
 DEST MANAGEMENT-
>Debtmanaqement k> one OF tHe imposfant_ ncons
Q he enjaal bank is n _undercle.elapea_ouDt-
94Sbauld aim at paOpex timing and isSinq
qOeinmenDonds, sabilizine tb£ID p i e s r
minimizinq tneLastS SéaviaOq_LubÉc_deb
I is hCeptaal bonkLabich trhdexakeSthe
Seliq Nd buqing Ogovernmen bopds Ad maki
limd change£h he siaduae and (ompasiticr
publicDdeb
ln 0zdex o Samqthen_d epbi tize the maatet
TUqoVnmep bonds he policy Of lQLL inferest

heice af RNernmeo_ bonds hereb makinq

impejus fhe PublicbaMDLoig nqDamme O

fhE_GOvernmen Tbe maintenbie Stuctone
Ofloua PoEarSaa i dlso Callec fas minimizing
the_Ca Of Sexvicipq the Dational deb

urther enoU KIGOS indting e cleb_by_private

zStloc Jeeh He SLCCeESO debt manaqement.
uolclolepend upODhe_ EesEOLEA LellJdaclopedk
n0ney and Copal_mankefS_fo abfth Lafde Hanqge
CCUBIhEs CXiS bothor Shoaf Aollanq-Dekiods.
i s he_ceotal bank Lhích Can help the
developmfn thASaaa{es
 CREDIT CONTROL
Cental Baok sha ld ako afm a_COolling-Cocit
in oxdez _bfluence he
paHexns0
iouesmen dnd Dduction io a _delapinq cocm
S IMa>n_Obiecdiue 1s o conatlinflatioreay
-

þ»RSSUESarisinq In thepotCess ceuelophoent

IhiS_equires heLSe e bafh_quantsfie and
Qualiatie ethods oClitztdl..
Open manke Operofions ae not SuccesSfil n
Coollinq inlatoD in underdeelopec COuries
beausehebill maaket LS SmallAnd undeveloped
Commestfal banKS keep ao elaic_caah=depost
Slafo_becouse tHe ce2ta banks (onhnl oueh
them ishat Lrnplef They alO l o 2eluctaof
40 Învest_fo govanoent Secúsipies duefo DEÍZ
Delaiel oc ofesHa fRS.

Morecrer instead0 nuesing o geuer mt

Secuaities thesprefex 40 Keep heiz Deknes
IDLquicd oxmSUtD ASgole oaegn exthapGe_
and cash. Coromexcial_ babks ae also
D0t_in_he babi1 a ediscounhosOx
bOaODINg- mtheCentral poDks
 he bank Hate _palfyiS olSo D0t0 ectfie in
Conttolinq (acolit idUNSdue
(a) he Ydck obisLo-fclisceun -
b)the parokl Slze Qf the_BLIL_maske -
2apge hon- monPiS9CSECHS LaDene_ Daaes
rnsa honspkeplh.ce,-
cd the 9xsterce_0 a knge inoagnised morgy
Marke-
etheitenceof indoenoLs banks Labích_don0
dicouobfls Lofth the Lental bank,ad
dhe habbii_0f_LOmmesial baoks o keep
lge_LASh_3APrVeS
Ibe S O Vvariabie RSPAR1ao as methodL
CEd Conaos moe efeche thon 0pen
manke t OpeKaoDS goc bank Hak_mlfcu fn DCS.
Sinehe maatetfor seLifes_ fs_Ven Smal Open
maaket_ Opeathons Dot_SuCESTulBa a_afse_
pa fall ioqhe 8Seove1afo Duy-he_cental baDk
2eduesO8 1OCaFS_ Hhe (ash_ailable _Lulth 4he
COromesúol banks LOjhOukacingtuer.seluhe

DganHe commexiol banks Keep_ ksqe Ash_ eSES Ves

Lhich ant be eclurec Dy à ddtse in the oDk_
La OSale O Secuxites byhe cenpal bapk. But
Haising he Cash= DesEKIe Mato edups
Okoidit
wthhe Daoks. tioueiex he Lwe OInaaiable
has (entain_limiätion în LNC
 Erst,enonDapkipginantial in¢amediaii)
do net keep deposifs Lb the eoal boank
o heY O Dot afectedl by 1 xl,
Danks ubich do pot mathpio exessquicditu
Ae at Afkdcl than fhase ha mainhin i 9

he qualitafie cotdit CeDIolmeasuzesAbt baweveh

more e i e than the guantiopLe measUes in
intHencinq the_allocahion D Lcdit_ancl Hereby
he_pafkn oF_iAestmen Inundezcltuelopecl
Couies heeS 0 STa encie
in in _gold jeLelleyloveotmieS al OSafe
instead of in aljESnafe poducue_chacmel
a1ailableinaqicultuae, mipoinq Planjapons
ADd incdustoy

The gelective Cnealit contpilS axe _mOe Apmupoiate

a L0mlinqand limitiog Coect facilijates_ßs
Sucb unprDot.ctie Puspase hey or henehial_in
00nolinqPeCLlatA dciuies in aod 4rains
And dad Maeniaks hey OVe MOxe Sep
in_CoonllhnqShonal lahions n he _ecOnom

hey_cunjailhe_demand io imwats by
makinq 0bliqota On mporjerso
depoSi h adahcean munf equa
sthe Value 0f40eigh(Uaen-
 (R)

Ibis haS alo He eftt of aiuinG he_EIV

Ofhebanks in So Par as the deposise
heniaec be (ta apks in-be_p20resS
lhe_eLechiA_CXedi CoDHtlmauakS_naq pake
he oxm of hapinq tbhe masqin LeOILLiets
aios_CEtain Lnes oOlLBFLal, he Alain_01
CdnSume Coecti nd the aponhg Of Taclt

Dolving he Balance OPaymenis ooblem

SThe
The Central bank Shod allo aimât Ptstin
a_deelaphq coDopY Such eODorniASace SeaiLLS
balance o_paimen difculties l t h e aage
0f 1eelop.mentPlansfn_inbiare5eatecl
betieen imposti Ond exp0ads bich _continue h
kdiden Ih_dievelopmen
lbe (onral bank Maoges ànd Cnpus be
helon achangeUthe COLDy ómlalso_ AtS aS
the krhoial uisc he Goenma is
he fnction Conal_Dank-0ci
-fluchu@fions iohe ffonOxchange aaks
mantaln abilt 9 S_So
bIDughEXChanq cnpOsdocl aianons nthe
bank
9at
oo nSe he Lal_Ob nahoDàl (um(y
(Ontinue ll ma dalie ihe_bonk Sin &hus
eocouna the iofloJ Ofeign Cuaaroci8s.
 R) 27

CONCLUSION

Tbus the Cental bankplass on hpotant aile

in_achievipq eccnOmiCq0LHH_D A_leelapin
LCLintau_hEuahthe aiaus measuath liscussed_
a 4Sbatld pnomoe Lonomic getn wäh
Sfabilityhelp in aBtaininqAuill omplbymént 4
ESDLICLES0 es/amenqalance OfPames.
disequiibion_od inUstabilisbinq PXchanqestas.
 Date..

olc o RBI Jn paalL develyimes

AS pe KOT AcL tea is mo Aacial MesponsibiUth
Apecifuad fo RBT
But it ad pomaledSosal Jnstlulior
douolaphnent oA0CiD LcohAbuc
ahoutons 'some Kea aoL

O for agaiciltusal daualeprront: it cecataol

a clakehLZhalhl -ALueLtunol COdit
oloasiiment Qhd hAe Aucultiusual_ke
nanco deelopmon dparad+lon wfick
Vbecame ahs NALARD

Aomalig saLlhga jt f0md

Vdio
o as0tect_snall doposutons G bonka
Deposut nugoneoCopooaZLon_ok Aubida
A USA Hda wai AOOhd CsLilu
o pcLUde clabasit ShsLanco
 Date

he&mal 9nduibuis dleueloprmont

ank and 9oar use ohllkol to
R9Hcnote Ondustouas oloueloprmont
agt up l a l Housing konk to pomot
Touyihg lang
PoonotdAtade {ianca aponitons Od
LLLidled uandhce acilthu
DKank Lslablikad lltge eAeuiculhisal
aoukungcallege
oosaLamathe
aaning dankbaK
ta eaudg-

EtahlihasMCR hashansed elasing

Extablskaol ILRDT at ydesataol a imprave

Ond AALasch in Kanklng lechhalo
4 tablikgd RT6S abd othee hast Pund1
TOnsKaLAsems

ank tabOkad sueont kankuia

dh2hda_ Anco96S, tváen bonk
alacdu o l hUSA
Tencher 'i Sian
 Date..

1 ak fovmd bvnhch ukanuion polc

o spneading bonndhes all ovee
hoda
1 onk inbioduceol pouiouit4 sectos ehalthg

Bank ns insteLwncKioO Jh uocdng

bankihqHitesac
ISKank iAtocucad haad Bank Schorne
douelopunt e Bstucts.

SAtroducad
banks
aguulaon co-op0sliue

( %Qsk establiskaol Jts eun2ole

Lank auistad h omullung CBS

Qhd ihstallotuon e/ ATMs
(9 lucdiucod Srdan Debrt caud RuPAY

richer' Sim
 Date.

Conclunion
KT ds tke apex bakuig induaduon sh Indin
KOT Qn'qutonoob body oormod
Kodáuasilerool cd Muwnbai: lhe ReT plaz
a key aala tha managonod o t
aakuou fodbàh chdhgo movénot
oD makung Qnd nan- borkihg fuacial
VIhe RLI Ccpontos ahwnbeu
Mlz_kat _puadiico.
CLLL0hcy Qhd Coins-
As bech Dhe c/ tha mosE
sucOALhLl Cntia Kahk Qound t
wold Vi pehehtungtka hkects e tho

Let UCoedibii o eyen alecusuan

tat 6kon hy thorkl kuuithe as a
koctod bu Jlaiain iui4
90Csasiy Jan RUY to thibk about
b i t u l h g its Phonlasu AdNce
 Date..

ALL AundloN RLI mondloy hon

hOLlor UO9bussb O omotloralL

nclian Atorork Urder e baukiay

Kegulaluon Act 20 REI has bee O
een a uide HONge OLbouwew Ondo
supiotuyon ilpleghon RLI
a uotkung ebnnka os gohall
Ampeoued Rhz kas been Osospensnba-
deuelopmont _wn ke CálAu