|Monetary Policy Project | |India’s Monetary Policy during recession, Currency Management by Reserve Bank of India and the summary of Monetary policy frameworks of | |various central banks. |
Introduction of Reserve Bank of India and brief summary of India’s Economic profile:2-5 How was India impacted by the global financial crisis?5-7 How did monetary policy of India respond to the crisis?7-11
Economic Offence/Crimes: Surge of counterfeits notes
and the steps taken by reserve bank of India in the area of currency Management.13-17
Part-2 monetary policy frameworks
Monetary Policy Committee- Monetary Policy Target: 18-19
Monetary Policy Communication:19-21
Market Operations: Other discretionary functions: 21-25 Currency distribution and handling.
Introduction of Reserve Bank of India and brief summary of India’s Economic profile:
Establishment: Reserve Bank of India.
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." | |
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. Appointed/Nominated for a period of four years. Constitution:
Official Directors: Full-time: Governor and not more than four Deputy Governors. Non-Official Directors: Nominated by Government: ten Directors from various fields and one government Official and Others, four Directors - one each from four local boards Local Boards: One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi Main Functions:
• Formulates implements and monitors the monetary policy. • Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors. Regulator and supervisor of the financial system:
• Prescribes broad parameters of banking operations within which the country's banking and financial system functions. • Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
Manager of Foreign Exchange:
• Manages the Foreign Exchange Management Act, 1999.
• Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Issuer of currency:
• Issues and exchanges or destroys currency and coins not fit for circulation. • Objective: to...