Banking Awareness 2017 Inwards Uncomplicated Linguistic Communication – Lesson 3

Banking Awareness 2017 inwards Simple Language 

Dear Gr8 Ambitionists, this is the tertiary lesson of our Banking Awareness 2017 in Simple Language series. In our previous lessons, nosotros convey learnt almost the basics of banking, structure of Indian Banking in addition to introduction of the Reserve Bank of Republic of Republic of India (RBI). In this lesson also, nosotros shall popular off on learning almost the Reserve Bank of India. Please work the comments department below, if you lot convey whatever doubts or suggestions. Happy Reading 🙂

Banking Awareness 2017 : â€‹â€‹Functions of RBI

​We tin dissever the Functions of the Reserve Bank of Republic of Republic of India inwards iii categories. They are,

  1. ​Main functions
     nosotros convey learnt almost the basics of banking Banking Awareness 2017 inwards Simple Language - Lesson 3
  2. Regulatory in addition to Supervisory Functions
  3. ​Promotional Functions

​Main Functions of RBI :

  • ​Issue of Bank Notes : RBI issues currency of Rs two & higher upward [mas. bound to lawsuit non 10,000 Rs.]
  • ​Banker to Government : RBI manages banking needs of Government. it operates govt. deposit accounts, collect funds in addition to brand payments. All transactions of centre in addition to province govt. are carried out past times RBI, except Govt. of Jammu & Kashmir.
  • ​Note : In IMF and World Bank RBI represents Govt. of India.
  • ​Banker to Other Banks : RBI has ability to control, assistance in addition to straight off other commercial banks.
  • ​Lender of Last Resort : RBI helps commercial banks inwards the fourth dimension of involve in addition to emergency amongst finance in addition to rescue it.
  • ​Custodian of Country’s Foreign Currency Reserves : The Reserve Bank has the custody of the country’s reserves of International Currency in addition to hence RBI can bargain amongst crisis connected amongst adverse residuum of payments option.
  • ​Central clearance in addition to Accounts Settlement : For commercial banks it is easier to bargain in addition to settle the claim of each other through RBI clearing keeping entries inwards the books of Reserve Bank.
  • ​Controller of Credit : RBI controls render of credit coin according to economical priority of the Government.
  • Selective Credit Control : RBI restricts depository fiscal establishment finance against sensitive commodities every bit foods, grains, cotton, textile, stone oil seeds, etc. For the purpose to bound depository fiscal establishment loans in addition to so that the toll of these goods may non increase because of belongings these goods past times using depository fiscal establishment finance. 

Regulatory and Supervisory Functions of RBI : 

  • ​Power to lawsuit license to the novel banks every bit good every bit to existing banks for branch expansion.
  • ​Power of solar daytime of the month & removal of banking board / personnel.
  • ​Power to regulate the occupation concern of banking.
  • ​Power to hand directions on surgical operation of banks from fourth dimension to time.
  • ​Power to inspect in addition to supervise banks in addition to impose norms of practice.
  • ​Power to comport audit of the banks.
  • ​Power relating to moratorium, amalgamation & winding up.
  • ​Power to collect & furnish credit data & impose penalty. 

Promotional Functions of RBI :

  • Establishment of Financial Institutions similar IDBI, SIDBI, IFCI, ICICI, IRBI.
  • Promotion of agriculture past times establishment of NABARD (National Bank of Agricultural & Rural development) & Agriculture College, Pune.
  • ​Promotion of Regional Rural Banks (RRB’s) in addition to thereby extending banking facilities to the rural areas.
  • ​Development of unusual merchandise past times helping inwards establishment of the Export-Import Bank in addition to facilitating the opening of branches inwards unusual centres past times Indian Banks.
  • ​Development of coin marketplace past times helping inwards establishment of Discount & Finance family of Republic of Republic of India Ltd.
  • ​Promotion of Housing Sector past times establishing National Housing Bank (NHB)
  • ​Establishment of Deposit Insurance in addition to Credit Guarantee Corporation of India (DICGC).

​That’s all for at nowadays friends. In our adjacent lesson of Banking Awareness 2017, nosotros shall hash out real of import topic, i.e., Methods of Credit Control past times RBI. That lesson volition endure a fleck lengthy, but ease assured, I volition become far every bit unproblematic every bit I can. All the Best 🙂

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