Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 10 Reserve Bank of India Notes
→ Educational, medical, hospitality and the like service business existed for centuries.
→ Banking service is the nerve center of industry and commerce in a country.
→ The word Bank, normally refers to commercial bank.
→ A Central bank is set up as an autonomous or quasi-autonomous body.
→ “ A central bank being generally recognized as a bank which constitutes the apex of the monetary and banking structure of its country and which performs as best as it can, in the national economic interest.” – De Kock.
→ A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country.” – Bank of International Settlement (BIS).
→ The Imperial Bank of India carried out the note issue and other functions of the central bank.
→ The head office of the RBI is situated in Mumbai.
→ Broad economic parameters such as employment level, price levels and production levels, trade cycles, foreign investment flows, balance of payments, financial markets, etc., are closely monitored by the RBI in order to achieve economic stability and growth.
→ The relationship between RBI and other banks in the country is just like the relationship of a commercial bank with its customers.
→ Bank rate refers to the rate at which the RBI rediscounts the bills given by the Scheduled banks.
→ Cash Reserve Ratio (CRR) is the ratio of Cash reserves with the RBI kept by Scheduled banks in proportion to the total Time and Demand Liabilities with them.
→ Statutory Liquidity Ratio (SLR) is the ratio of money and money equivalents kept within the bank in proportion to the total Time and Demand Liabilities with them.
→ Marginal Requirement refers to the percentage of the value of securities submitted before issue of loans.
→ RBI acts as clearing house and maintains a clearing system for all commercial banks in India.
→ The RBI performs a wide range of promotional functions to support national objectives.
→ RBI has appointed 20 (up to 2017) Banking Ombudsman in 20 state capitals.
→ Agriculture industry is specified as priority sector by the RBI.
→ The RBI has simplified the rules for credit to exporters, through which they can now get long term advance from banks.
→ RBI is one of the best central banks in the world.