A Project Report On

BACHELOR OF Commerce
Miss. Nilesha Namdev Mahale

Prof. S. P. Jadhav Sir Prof. Pooja Mehakarkar

Head Of Dept. Project Guide

R. A. Arts M. K. Commerce S. R. Rathi Science College.

2016-2017
Reserve Bank Of India
To regulate the issue of bank notes.
To maintain reserves with a view to securing
monetary stability.
To operate the credit & currency system of the
country.
Board of RBI
Bank affairs are governed by Central Board of
Directors
Central Board consists of Official and Non-Official
appointed by Govt. of India for a period of four years.
Official Directors include Governor and not more than
4 Deputy Governor.
RBI having four local boards in 4 regions to represent
territorial and economic interest of local co-operative
& indigenous banks.
Legal Framework
Umbrella Acts which form the basis of its very
foundation.
Acts which govern the specific function of apex body.
Acts which govern the Banking operation.
Acts which govern the individual institutions.
Main Functions of Reserve Bank of India
Maintenance of Price Level.
Regulator & Supervisor of the financial system.
Manager of Foreign Exchange.
Issuance & Replacement of Currency.
Functions of Various Departments of RBI
Urban Banks Department: RBI regulates the interest
rates on deposits & advances, also prescribing min
reserves & liabilities to be maintained. Also refinance
facilities to state co-operative banks.
Rural Planning & Credit Department: Facilitating
credit to rural, agriculture & small scale industries,
Policy on priority sector lending, support to NABARD
etc.
Foreign Exchange Department:
Timely realization of export proceeds and reviews
Licensing banks to deal in foreign exchange,
collecting data related to forex transactions from
authorized dealers on daily basis for exchange rate
management.
Also laying down policy guidelines for risk
management to forex transactions in bank
Department of Banking Supervision
Undertaking scheduled and on-site inspections of
banks
Determining the criteria for the appointment of
statutory auditors and assessing audit performance
and disclosure standards.
Dealing with financial sector frauds and attending the
complaints received against banks and FIs from
public, banks & Government.
Department of Banking Operations &
Development

To promote & foster a sound & competitive banking

system.
Laying down regulations relating to capital adequacy,
asset classification, provision for loan, investment
valuation, accounting & disclosure standards and risk
management systems.
Licensing of new banks, expansion of foreign and
domestic banks, approval for setting up of
subsidiaries.
Functions of Various Departments of RBI
Department of Information Technology:
Computerization in RBI
Legal Department: To tender legal advice on various
matters referred by the operational
departments/offices/associates of the reserve bank.
Department of Govt. and Bank Accounts: Acting as
a banker to the banks, administering public debt of
both central & state govt.
Functions of Various Departments of RBI
Monetary Policy Department: Preparation of
monetary budget, periodic review of monetary, review
of CRR & SLR stipulations, analysis of data on
developments in money market.
Internal Debt Management Dept.: Managing
Internal Debt, Auctioning the govt. Debt from time to
time, Introduction of new instruments, smoothening
the maturity structure of debt.
Department of Economic Analysis and Policy
Analyzing the basic issues & problems affecting the
Indian economy.
Serves as a primary source of data & information
relating to aspects of Indian economy.
Prepares monetary & credit aggregates, balance of
payments and external debt statistics, internal debt &
govt. finance statistics, and flow of funds & financial
savings.