Monday, January 7, 2013


01. RBI generally reviews the monetary policy every three months on a quarterly basis
02. The rate at which Reserve Bank of India lends short term money to the banks  is called as repo rate
03. The Reserve Bank of India was nationalized on 1.1.1949
04. RBI functions are governed by RBI act 1934
05. RBI is not expected to perform the function of accepting deposits from the general public
06. RBI functions as a banker to the government; accepts deposits from commercial banks and issues currencies
07. RBI has its headquarters at Mumbai
08. The first Governor of the Reserve Bank of India from 01.04.1935 to 30.06.1937 was Sir Osborne Smith
09. The 22nd current Governor of Reserve Bank of India is Y V Reddy
10. Prime lending rate is not decided by RBI
11. Prime lending rate is decided by the individual banks
12. RBI decides the following rates namely; Bank rate, repo rate, reverse repo rate and cash reserve ratio
13. RBI was set up on the recommendations of Hilton Young commission
14. RBI formulates implements and monitors the monetary policy
15. The central banking institution in India is Reserve Bank of India
16. RBI had divested its stake in State Bank of India to IDBI bank
17. At present the RBI holds one percent of shareholding in National Bank for Agriculture and Rural Development Bank – NABARD
18. The number of regional offices of RBI is 23
19. In India RBI prescribes the minimum SLR level for scheduled commercial banks in India in specified assets as a percentage of bank’s net demand and time liabilities
20. CRR refers to the share of liquid cash that rural banks have to maintain with RBI of their net demand and time liabilities
21. The functions of RBI are – acts as the currency authority; controls money supply and credit; manages foreign exchange and serves as a banker to the government
22. The quantitative instruments of RBI are – bank rate policy, cash reserve ratio and statutory liquidity ratio
23. The objective of monetary policy of RBI is to control inflation; discourage hoarding of commodities and encourage flow of credit into neglected sector
24. When RBI is lender of the last resort, it means that RBI advances credit against eligible securities
25. When RBI acts as a banker to the government, its functions are – keeping bank accounts of the government; carrying out government transactions and advising the government on all financial and monetary matters
26. Government of India decides the quantity of coins to be minted
27. The method which is used currently in India to issue currency note – minimum reserve system
28. An anna was equal to four paise
29. The first decimal issues of coins in 1950 in India consisted of 1,2,5 paise
30. RBI began production of notes in 1938, issuing Rs.2,5,10, 1000 notes. Rs. 500 note was reintroduced again in 1987
31. Rs. 1000 note was reintroduced again in 2000
32. Coins which were struck in with the hand picture are available since 2010
33. Under Britton Woods system, as a member of International Monetary Fund, India declared its par value of rupee in terms of gold
34. On September, 25, 1975, rupee was delinked from pound sterling and was linked to basket of currencies
35. On March 1, 1992, RBI announced a new system of exchange rates known as partial convertibility and liberalized exchange rate system
36. In India, the fixed fiduciary system of note issue was in force from 1816 to 1920
37. During 1992, India adopted partial convertibility of rupee
38. All banks are authorized to accept soiled notes across their counters and pay the exchange value
39. Banks are expected to offer this service even to non customers
40. All public sector bank branches and currency chest branches of private sector banks are authorized to adjudicate and pay value in respect of mutilated notes
41. RBI has also authorized all commercial bank branches to treat certain notes in two pieces as soiled notes and pay exchange value
42. At present there are over 4000 currency chests in the country
43. Indo_Greeks were the first rulers in India to issue coins which can be definitely attributed to the kings
44. Section 22 of RBI act 1934 gives sole power to RBI to issue currency notes
45. For issuing notes, RBI is required to hold the minimum reserves of Rs. 200 crore of which note less than Rs. 115 crore is to be held in gold
46. The decimal system of note and coin issue was started in the country in 1957
47. The objectives of financial sector reforms in the country are – creating an efficient, productive and profitable financial sector industry; preparing the financial system for increasing international competition; opening the external sector in a calibrated fashion; promoting the maintenance of financial stability even in the face of domestic and external environments
48. The Narasimhan Committee-I was set in 1991
49. The Narasimhan Committee-I was set up to suggest some recommendations for improvement in the efficiency and productivity of the financial institution
50. The Narasimhan Committee-II was set up to suggest some recommendations for improvement in the banking reform process

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