--way to go or a case to metamorphose
: Dinesh Agarwal
Team Name : Indian Ventures Institute : SIMSREE - Sydenham Institute of Management Studies, Research and Entrepreneurship Education. Mobile Mail : +91 9324296928 : firstname.lastname@example.org
The Bankers bank, Reserve Bank of India (RBI) established in April 1, 1935 has undergone many functional changes. Though the Preamble limits its functionality to regulate issuance of local currency, reserve maintenance; the conflict of interest comes from Monetary and Credit Policy lookout and at the same time raising funds for the Fiscal Policy which the Government of India outlines. Traditional Functions Issuance of currency. Banker to Government. Agent and Advisor to Government. Bankers Bank. Clearing House. Lender of the last resort. Promotional Functions Supervisory Functions Expansion of banking system. Granting License to banks Inspections and monitoring
Export promotion. banking system. Agriculture credit Depositor insurance scheme Small scale industry Periodical review of promotion. Co-operative promotion. Minimum requirement. New commercial banks. sector Directives to commercial banks. statutory Non-banking financial
corporation control. banking Health of financial system by verification.
Foreign Exchange custodian. transactions. Exchange rate maintenance. Foreign exchange and Credit control. Internal Value of currency. Economical statistical data. Fight against Economic Crisis.
RBI primary role is to regulate credit and thereby manage inflation rate. Through its slew of measures like Statuary Liquidity Ratio (SLR), Cash Reserve Ratio (CRR) and repo rates it manages the liquidity available with the banks and monitor credit growth in the economy. An increased SLR reduces the extendable credit with the banks. An increased Cash Reserve Ratio means more parking of funds by banks with the RBI. Both reduce liquidity in the money market. When there is ample liquidity in the... [continues]
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