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PYQ 1200 Q/A Part - 1
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Kerala PSC India Year Book Study Materials Page 206
Book's First Pageexchange market has evolved as a key segment of the Indian financial market and RBI has an important role to play in regulating and managing this segment. It manages forex and gold reserves of the nation. RBI is the sole body that is authorized to issue currency in India. The bank also destroys the same when they are not fit for circulation. All the money issued by the central bank is its monetary liability, i.e., the central bank is obliged to back the currency with assets of equal value, to enhance public confidence in paper currency. The objectives are to issue bank notes and give public adequate supply of the same, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. For printing of notes, the Security Printing and Minting Corporation of India Limited (SPMCIL), a wholly owned company of the Government of India, has set up printing presses at Nashik, Maharashtra and Dewas, Madhya Pradesh. The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), also has set up printing presses in Mysore in Karnataka and Salboni in West Bengal. In all, there are four printing presses. For minting coins, SPMCIL has four mints at Mumbai, Noida (UP), Kolkata and Hyderabad. In order to curb the fake currency, RBI has launched a website to raise awareness among masses about fake notes in the market www.paisaboltahai.rbi.org.in provides information about identifying fake currency. Relevant Website: www.rbi.org.in Regional Rural Banks The Regional Rural Banks (RRBs) were established under Regional Rural Banks Act, 1976 to create an alternative channel to the cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. RRBs are jointly owned by Government of India, concerned state government and sponsor banks with the issued capital shared in the proportion of 50 per cent, 15 per cent and 35 per cent, respectively. Kisan Credit Card The Kisan Credit Card (KCC) scheme was introduced in 1998-99, as an innovative credit delivery system aiming at adequate and timely credit support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible, convenient and cost effective manner. The scheme is being implemented by all cooperative banks, RRBs and public sector commercial banks throughout the country. KCC is one of the most effective tools for delivering agriculture credit. NABARD monitors the scheme in respect of cooperative banks and RRBs and RBI in respect of commercial banks. A new scheme for KCC has been circulated by RBI and NABARD which provides for KCC as an ATM card which can be used at ATM/Point of Sale (POS) terminal. Rural Infrastructure Development Fund The Central Government established a fund to be operationalised by NABARD namely, the Rural Infrastructure Development Fund (RIDF), which was set-up within NABARD during 1995-96 by way of deposits from Scheduled Commercial Banks operating within the country from the shortfall in their agricultural/priority sector/weaker sections lending. The fund has since been continued, with its allocation being announced every year in the Union Budget. Over the years, coverage under the RIDF has been broad based, in each tranche, and at present, a wide