The General Principles of the Bank Regulation are:
Minimum Requirements: The main minimum requirement is maintaining minimum capital ratios. In this, the requirements are forced on the bank to prompt the objectives of the regulator.
Supervisory Review: This is process of identifies the responsibilities of the bank to increase benefits and setting targets. It is the processed of the structure to protect the banks that can have sufficient capital to support all risks.
Market Discipline: Market discipline is a market – based advertisement of the transparency and declaration of the risk. It is used to increase the safety and soundness of the market.
|1||Sir Osborne Smith||01.04.1935 to 30.06.1937|
|2||Sir James Taylor||01.07.1937 to 17.02.1943|
|3||Sir CD Deshmukh||11.08.1943 to 30.06.1949|
|4||Sir Benegal Rama Rau||01.07.1949 to 14.01.1957|
|5||KG Ambegaonkar||14.01.1957 to 28.02.1957|
|6||HVR Lengar||01.03.1957 to 28.02.1957|
|7||PC Bhattacharya||01.03.1962 to 30.06.1967|
|8||LK Jha||01.07.1967 to 03.05.1970|
|9||BN Adarkhar||04.05.1970 to 05.06.1970|
|10||S Jagannathan||16.06.1970 to 19.05.1975|
|11||NC Sen Gupta||20.05.1975 to 19.08.1975|
|12||KR Puri||20.08.1975 to 02.05.1977|
|13||M.Narsimham||02.05.1977 to 30.11.1977|
|14||Dr IG Patel||01.12.1977 to 15.09.1982|
|15||Dr.Manoharan Singh||16.09.1982 to 14.01.1985|
|16||A Ghosh||15.01.1985 to 04.02.1985|
|17||RN Malhotra||04.02.1985 to 22.12.1990|
|18||S Venkatramanan||22.12.1990 to 21.12.1992|
|19||Dr C Rangarajan||22.12.1992 to 21.11.1997|
|20||Dr Bimal Rajan||22.11.1997 to 06.09.2003|
|21||Dr YV Reddy||06.09.2003 to 05.09.2008|
|22||Dr D Subbarao||05.09.2008 to 04.09.2013|
|23||Dr Raghuram Rajan||04.09.2013 till date|
|24||Urjit Patel||04.09.2016 till 10.12.2018|
|25||Shaktikanta Das||December 2018 till date|
1. Issuer of Currency Notes : RBI is responsible for issuing currency notes. It brings uniformity in notes issue thus making it easier to control and regulate credit in accordance with the requirements in the economy. RBI always strives to restore the faith of the public in the paper currency.
2. Banker to the Government : RBI, the banker to the government manages the banking needs of the government. It maintains and operates the government’s deposit accounts. It collects receipts of funds and makes payments on behalf of the government. It represents the Government of India as the member of the IMF and the World Bank.
3. Custodian of Cash Reserves of Commercial Banks : The commercial banks hold deposits in the Reserve Bank and the latter has the custody of the cash reserves of the commercial banks. RBI is also the regulator and supervisor of the financial system and prescribes broad parameters of banking operations within which the country’s banking and financial system functions. The primary objectives of RBI are to maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public. Reserve Bank of India decides policy rates and reserve ratios.
4. Custodian of country’s Foreign Currency Reserves : RBI has the custody of the country’s reserves of international currency, and this enables the Reserve Bank to deal with crisis connected with adverse balance of payments position. The custody of the India’s reserves of international currency, enables the Reserve Bank to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
5. Lender of Last Resort : RBI is the final resort for the commercial banks in times of emergency to tide over financial difficulties. Though RBI is always available to handle the emergencies and financial hurdles, it charges a higher rate of interest.
6. Controller of Credit : Credit money forms the most important part of supply of money, and since the supply of money has important implications for economic stability, the importance of control of credit is vital for the financial stability of the nation. Credit is controlled by the Reserve Bank of India in accordance with the economic priorities of the government.
7. Central Clearance and Accounts Settlement : Commercial banks have their surplus cash reserves deposited in the Reserve Bank. Thus, it is easier to deal with each other and settle the claim of each on the other through book keeping entries in the books of the Reserve Bank. The clearing of accounts has now become an essential function of the Reserve Bank.
8. Detection of Fake Currency : Reserve Bank is expected to unearth black money held in cash. As the new currency notes (demonetization) have added security features, they would help in curbing the menace of fake currency.
RBI is the Regulator of Financial System. The primary and essential objectives of RBI:
• Controlling money supply in the system, monitoring different key indicators.
• Maintaining people’s confidence in banking and financial system.
RBI is the Controller and Supervisor of Banking systems. The banks are as follows:
• Public Sector Banks
• Private Sector Banks
• Foreign Banks
• Co-operative Banks, or
• Regional Rural Banks
Answer: Option A
2. The Central Office of the Reserve Bank was permanently moved to Mumbai in ____.
Answer: Option B
3. When RBI came into existence on 1st July 1935, it was ___.
Answer: Option C
4. Reserve Bank is fully owned by the Government of India since nationalization in ____.
Answer: Option B
5. The Governor of RBI as on March 1, 2019 is ______.
Answer: Option B