FUNCTIONS OF RESERVE BANK OF INDIA

FUNCTIONS OF RESERVE BANK OF INDIA
Main Functions of RBI.
1. Monetary Authority: Formulates, Implements & Monitors the Monetary policy.
2. Regulator & Supervisor of Financial System: Prescribes Board Parameters of
Banking Operations within which the Country's Banking & Financial System
functions.
3. Manages the Foreign Exchange Management Act, 1999: To facilitate External
trade & Payment/Promote Orderly Development & Maintenance of Foreign
Exchange market in India.
4. Issuer of Currency: Issues & Exchanges or Destroys Currency & Coins not fit
for Circulation.
Perform a wide Range of Promotional functions to Support National.
 Related Functions.
1. Banker to the Govt: Performs merchants Banking function for the Central & the
Stage Governments; also Acts as their Banker.
2. Banker to Banks: Maintains Banking accounts (A/c's) of all Scheduled Banks.
ACTS ADMINISTERED BY RBI.
1. Reserve Bank of India (RBI) Act, 1934
2. Public Debit Act, 1944/ Govt. Securities Act, 2006
3. Government Securities Regulation Act, 2007
4. Banking Regulation Act, 1949
5. Foreign Exchange Management Act, 1999
6. Securitization & Reconstruction of Financial Asrets & Enforcement of Security
Interest Act, 2002 (CHAPTER-II)
7. Credit Information Companies (Regulation) Act, 2005
8. Payment & Settlement Systems Act, 2007
9. Payment & Settlement Systems Regulations Act, 2008 and Amended upto 2011
& BPSS Regulations Act, 2008
10. Factoring Regulation Act, 2011
11. Payment & Settlement Systems (AMENDMENT) Act, 2015- No: 18/2015.
SOME OTHER BANKING RELEVANT ACTS:
1. NI (Negotiable Instruments) Act, 1881
2. Bankers Books Evidence Act, 1891
3. State Bank of India (SBI) Act, 1955
4. Companies Act, 1956/Companies Act, 2013
5. Securities Contact (Regulation) Act, 1956
6. State Bank of India (SBI)‐(Subsidiary Banks) Act, 1959
7. Deposit Insurance & Credit Guarantee Corporation Act, 1961
8. Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970
9. National Bank for Agriculture & Rural Development (NABARD), Act 1981
10. National Housing Bank Act, 1987
11. Recovery of Debts Due to Banks & Financial Institution Act, 1993
12. Competition Act, 2002
13. Indian Coinage Act, 2011: Governs Currency & Coins
14. Banking Secrecy Act
15. Industrial Development Bank (Transfer of Undertaking & Repeal) Act, 1993.