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Role of Rbi

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Role of Rbi
Introduction

Reserve bank of India is central bank of India which is functioning for different activities in Indian financial sector, their main intension is to stabilise the financial and monetary systems for growth. It regulates and supervises the banking industry, having authority of monetarism, currency issuer, banker to all banks, manages the foreign exchange, debt management to central government and developing leader of country...etc. some of the main activities we are going to analyze below are

RBI as regulator
Monetary policy
Basel norms and impact on Indian industry

Howe these typical concepts affect the Indian banking system is the main aim of the project.

Fundamentally, Indian financial system is supporting by banks, reserve bank of India (RBI) is playing the critical role of regulating and supervising such banks as well as ensuring the soundness and safety of banking system which leads to financial stability. As a regulator and supervisor, RBI ensures a frame work for operations and development of banking industry which is focusing for the conductive customer interests and financial stability of the country through certain preventive measures.
RBI tools
For supervision and regulation RBI ensures some tools which are On-site inspection Off-site scrutiny which is tending to get reports from regulated entities Thematic inspections, surveillance and periodic meetings
RBI’s regulatory role
A range of activities are comprised by the national financial regulator, they are Licensing Monitoring governance Prescribing capital requirements Regulating interest rates Setting prudential regulations to make sure solvency and liquidity of the banks Ordering the lending to certain priority sectors of economy Setting appropriate regulatory norms related to income recognition, asset classification, Provisioning, investment valuation, exposure limits and the like Initiating new regulation

For instance let us apply for banks

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