Reserve Bank of India - Facts you need to know

RBI is the central Bank of India.It established on 1st April 1935 under RBI Act 1934 with the recommendation of Hilton Young Commission .

RBI Governor : Raghu Ram Rajan ( 5th Sept,2013 - 4 Sept,2016)

Deputy Governors : 4

H. R . Khan
K. C. Chakrabarty
Dr. Urjit Patel
R Gandhi

Facts about RBI

1.	India’s central banking institution/authority
2.	Controls Monetary policy of the Indian rupee
3.	Est. 1 Apr,1935 during the British Raj under RBI ACT 1934
4.	Nationalized in 1^st Jan,1949
5.	Member bank of the Asian Clearing Union
6.	Providing license to New Banks
7.	It regulate, control & inspects the bank in India
8.	Share capital fully paid initially owned by private shareholders
9.	It plays an important part in the development strategy of the govt. of India
10.	Consist of 21 members 1 Governor 4 Deputy Governor 2 Finance Ministry Representative 10 Govt. nominated directors to represent important elements from India's economy 4 Directors to represent local boards

Public Sector Bank

Example : SBI, Allahabad Bank, Bank Of Baroda, Bank of India

Private Sector Bank

In which private Individual or Group of Private individual's share is 51% or above.

Example : ICICI

Foreign Bank

Head office locate outside and Branches comes in India.

Public Sector Bank (PSB)

1969 's 14 Bank nationalised
1981 's again 6 Bank nationalised
1993 2 merge bank Bank of India & PNB
19 + IDBI + SBI + 5 Associate Of SBI + Bhartiya Mahila Bank

Subsidiary of RBI

Fully owned by Govt.
national Housing Bank (NHB)
Insurance Credit & Depository
(NBARD) National Bank of Agric. & Rural Development

Monetary Policy

CRR ( Cash Reserve Ratio)

Every Bank need to maintain in the form cash
4 % of NDTL ( Net Demand & Time Liability )

SLR ( Statutory Liquidity Ratio )

21.50 % of NDTL
In the form of Gold, Govt. Securities which are easily converted into cash.

Repo Rate

When bank lends money from RBI certain interest has to paid by bank.
7.25%
For Short Term\more than 2 days upto 90 days
There will be always minimum difference between Repo Rate & Reverse Repo Rate is 1%

Reverse Repo Rate

When bank deposit surplus amount with RBI certain interest has to paid by RBI.
6.25%

Marginal Standing Facility (MSF)

Same as Repo Rate ( Scheduled Bank borrow funds overnight from RBI)
Short term upto 90 days
upto 2 % of NDTL

Bank Rate

long term
Same as Repo Rate

Base Rate

Fixed by RBI
Below it No loan can provided by any Bank
PLR(Prime Lending Rate)
Fixed by Bank
Loan provided by banks to his customers

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