Functions of the Reserve Bank of India

banks

The main functions are as follows –

 

  • advice to the Government on financial problems;
  • providing cash loans to the Government, private commercial banks, and some large institutional clients; 
  • carrying out activities as a “lender of last resort”. The Bank provides loans to the country’s commercial banks;
  • Furthermore, exercising control over the activities of private commercial banks;
  • money issue and regulation of money circulation;
  • sale, purchase of promissory notes and other securities;
  • public debt management by the Government of the country;
  • management of the monetary system in the interests of the whole country;
  • storage of the country’s gold and foreign exchange reserves. Purchase, sale of precious metals (gold, silver) and foreign currency;
  • exercising control over the repatriation of export proceeds and payments for imports;
  • regulation of the country’s banking system;
  • storage and settlement of funds, the government of the country and the state governments;
  • storage of required reserves of commercial banks

 

Note that, the india post payment bank ifsc code will help you to identify the IFSC code. As we already know that IFSC code is important to transfer a fund from one bank to another bank. And it is not possible without the IFSC code. 

 

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The Bank has broad powers to directly regulate the Indian banking system, as provided for by the Banking Regulation Act 1949. In addition, and indirectly by adjusting its discount rate, reserve requirements, selective credit control, and open market operations. Furthermore, with the exception of refinancing of food loans and export credits, the refinancing policy of commercial banks is at the discretion of the Reserve Bank of India.

 

In the system of commercial banks, there are currently 274 registered banks (these are banks included in the second list attached to the Law on the Reserve Bank) and 4 banks not included in the list. Furthermore, 22 foreign banks out of 274 registered banks specialize in foreign trade lending and also compete in the domestic banking market.

 

The largest registered bank is the State Bank of India, formed as a result of the nationalization of the Imperial Bank of India in 1955. The State Bank functions as an agent of the Reserve Bank in government operations and also performs purely commercial functions.

 

Banks of India:

 

    1. Allahabad Bank – It is the oldest bank in India, serving clients since 1865.
    2. Andhra Bank – Andhra Bank was founded on November 20, 1923, by the famous freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya. The bank currently has about 1,500 branches that cover 22 states and 2 territories. The bank plans to open 121 more branches and 50 ATMs in North India.
    3. Abu Dhabi Commercial Bank (India) – represented by two branches in India.
    4. Bank of India – It was nationalized in 1969 along with 13 other Indian banks. Has over 3,100 branches, including 27 branches outside India. The bank was founded on September 7, 1906.
    5. Bank of Baroda – founded in 1908 and is one of the largest banks in India. It was nationalized on July 19, 1969, by the Indian government.
    6. Canara Bank – Today Canara Bank occupies a leading position among Indian banks. As of December 2009, the bank had over 3 thousand branches throughout India.
    7. Centurion Bank of Punjab is an Indian private bank, founded in 1994. On May 23, 2008, the Indian bank, HDFC Bank bought this bank.
    8. Corporation Bank is one of the oldest commercial banks in the country.
    9. Development Credit Bank (DCB) – was transformed into a commercial bank in 1995 as a result of the liberalization of the Indian economy. The Central Bank of India controls the bank. 
    10. Dena Bank – It was founded in 1938 and nationalized in 1969. In addition, the state owns 51% of the shares. The bank has more than 1,100 branches and 400 ATMs, more than half of which are located in the western states of Maharashtra and Gujarat. 
    11. Deutsche Bank India – serves private, corporate, and institutional clients. Services include investment banking, asset and wealth management, debit and credit cards, consumer loans, business process outsourcing, etc.
    12. ICICI Bank – It is the second-largest bank in India.
  • IDBI Bank 
  • Indian Bank
    1. ING Vysya Bank – was founded in Bangalore in 1930 with the aim of providing services to non-privileged segments of the population.
  • Indian Overseas Bank
  • IndusInd Bank
    1. The Federal Bank Ltd is the largest bank in the private sector.
  • Guardian Souharda Sahakari Bank Niyamitha
    1. HDFC Bank – If you’re making a fund transfer with the HDFC bank then the hdfc0000240 will help you to identify the IFSC code for HDFC Bank.
    2. Maharashtra Bank – founded on September 16, 1935. After nationalization in 1969, the bank developed rapidly and currently has a branch network of about 1400 branches throughout the country and is the largest in the state of Maharashtra.
  • Mandvi Bank
  • Oriental Bank of Commerce
    1. Punjab National Bank (PNB) – was founded in 1895 and nationalized in 1969 along with 13 other banks.
    2. Punjab & Maharashtra Co-operative Bank – PMC Bank began operations on February 13, 1984, and in 2000 became the youngest cooperative bank to receive Scheduled Bank status.
  • Reserve Bank of India
    1. South Indian Bank
  • State Bank of India (SBI)
  • State Bank of Saurashtra
  • Thane Janata Sahakari Bank Ltd
  • UCO Bank
  • Union Bank of India
  1. Citibank – has one of the largest ATM networks in the country.
  2. Vijaya Bank – was founded in 1931 and nationalized in 1980. The branch network includes more than 1150 branches.

 

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