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Regulators in Financial System - Rbi - Sebi - Irda

The document discusses the key regulators in India's financial system - the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority (IRDA). It then provides more details on the RBI, including its history as the central bank of India established in 1935, functions such as issuing bank notes, acting as the government's banker, overseeing monetary policy, and supervising commercial banks.

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Akshay sachan
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155 views17 pages

Regulators in Financial System - Rbi - Sebi - Irda

The document discusses the key regulators in India's financial system - the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority (IRDA). It then provides more details on the RBI, including its history as the central bank of India established in 1935, functions such as issuing bank notes, acting as the government's banker, overseeing monetary policy, and supervising commercial banks.

Uploaded by

Akshay sachan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Regulators in Financial System

• RBI
• SEBI
• IRDA
PRESENTATION ON
RBI

By –
Dr. Y. P. Singh
CONTENT
 Concept
 Background/History
 Functions of RBI
CONCEPT
RBI is the central bank of india, founded in 1
april,1935. Which maintains the policy of its
national currency, the rupee and the nation's
currency reserves. It is a member of the asian
clearing union. The primary function of this
establishment is to regulate the issuing of
bank notes to ensure secure monetary
stability in India.
HISTORY
• RBI was established on April 1935 as central bank of
India, It was nationalized on Jan 1949.
• The banks share capital is Rs. 5 cr.
• RBI regulate affairs of players in financial system under
RBI Act 1934 and Banking Regulation Act 1949,
• Governor of RBI is Mr. Raghuram rajan, since 4
sep,2013, who took over from D.Subbarao.
• It took over 23 governors.
• Its headquarter is in Mumbai, Maharashtra.
Functions of RBI:
1) Issue of bank notes: RBI has the sole right to
issue currency notes except one rupee note
which is issued by ministry of finance.
Advantage:-
a) It makes possible effective state supervision.
b) It is easier to control and regulate credit in
accordance with the requirement in the economy.
c) It brings uniformity in notes issue.
d) It keeps faith of the public in the paper currency.
2) Bankers to Government:

It maintain and operate the govt.'s deposit


accounts. It collect receipts of funds and
makes payments on behalf of govt. it
represents the govt. of India as the member
of IMF and the world bank.
3) Controlling money supply in the system
i.e. Monetary regulation and management.
4) Monitoring different key indicators like
GDP and inflation.
5) Banker's bank.
6) Agriculture finance, Industrial finance and
Export finance.
Summary of Functions of RBI

• Note issuing authority,


• Government’s banker,
• Banker's bank,
• Supervising authority,
• Regulator of money and credit
Note issuing authority
• Printing of currency notes are performed by ‘The Bhartiya
Reserve Bank Note Mudran Private limited’ (BRBNMPL),
• This is a wholly owned subsidiary of RBI,
• Two printing press one at Mysore in Karnataka and another at
Salboni in West Bengal,
• Both press have a combined capacity of 19.8 billion notes per
year,
• As per 2007-08 Balance Sheet of RBI total 6,12,323 cr. Notes
are in circulation,
Government’s banker

• Maintain of current accounts of central and


state government,
• Payment and collections,
• Lending to government under ‘Ways and
Means Advance’
• Advisor to government,
Banker’s Bank
(Authority to implement Banking regulation Act)

• Reserves with RBI in form of CRR and SLR,


• Issuing of licenses,
• Controlling over banking affairs,
• Banker of last resort,
Supervising Authority

• RBI has a Board for Financial Supervision (BFS),


• This board supervise the affairs of commercial banks in public
and private sector, NBFCs, Financial Institutions through CAMEL
rating system,
• C= capital adequacy,
• A= asset quality,
• M= management,
• E= earning,
• L= liquidity,
• A banks health is evaluated on 1 to 5 rating where 1 refer as
highest rating and 5 as lowest,
Regulator of Money and Credit

• RBI regulate supply of money and credit in economy through Monetary


Policy,
• MP is prepared to pace up economic development and ensure price
stability through controlled bank credit and money supply,
• RBI use different tools under MP,
• Bank rate,
• Cash Reserve Ratio (CRR),
• Statutory Liquidity Ratio (SLR),
• Open Market Operation (OMO),
• liquidity Adjustment Facility (LAF),
• Repos/ Reverse Repos
• Bank rate - 9%
• Interest on reserve - 4%
• Repo rate - 8%
• Reserve repo rate - 7%
• CRR - 4%
• SLR - 22%

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