and Settlement Systems Act of (PSS Act) gives RBI oversight authority for the payment and settlement systems in the country. RBI focuses on the development and functioning of safe, secure and efficient payment and settlement mechanisms. . Developmental Role: This role includes the development of the quality banking system in India and ensuring that credit is available to the productive sectors of the economy.
It provides a wide range of promotional functions to support national objectives. It also includes establishing institutions designed to build the country’s financial infrastructure. It also helps in expanding access to affordable financial services and promoting financial education and literacy. .
Publisher of monetary data and other data: RBI maintains and provides all essential banking and other economic data, formulating and critically evaluating the economic policies in India. RBI collects, collates and publishes data regularly. . Exchange manager and controller: RBI represents India as a member of the International Monetary Fund [IMF].
Most of the commercial banks are authorized dealers of RBI. . Banking Ombudsman Scheme: RBI introduced the Banking Ombudsman Scheme in . Under this scheme, the complainants can file their complaints in any form, including online and can also appeal to the Ombudsman against the awards and the other decisions of the Banks.
. Banking Codes and Standards Board of India: To measure the performance of banks against Codes and standards based on established global practices, the RBI has set up the Banking Codes and Standards Board of India (BCSBI). . .
. Credit Control Measures Credit control is the primary mechanism available to the Central banks to realize the objectives of monetary management. The RBI is much better placed than many of credit control. The statutory basis for the control of the credit system by the Reserve Bank is embodied in the Reserve Bank of India Act, and the Banking Regulation Act, .
Credit Control Measures General (Quantitative) Selective (Qualitative) . Bank Rate . Open Market Operations . Variable Cash Reserve Ratio .
Rationing of Credit . Direct Action . Moral suasion . Publicity .
Regulation of Consumer’ Credit . Marginal Requirements