This article provides information about the reserve bank of India guidelines to the Indian banks!

The Reserve Bank of India regulates and supervises the nation’s financial system. A core function of the Reserve Bank in the last 75 years has been the formulation and implementation of monetary policy with the objectives of maintaining price stability and ensuring adequate flow of credit to productive sectors of the economy.

The Reserve Bank designs and implements the regulatory policy framework for banking and non- banking financial institutions with the aim of providing people access to the banking system, protecting depositors’ interest, and maintaining the overall health of the financial system.


One of the most important functions of central banks is formulation and execution of monetary policy. As the regulator and the supervisor of the banking system, the Reserve Bank has a critical role to play in ensuring the system’s safety and soundness.

The importance of farm credit as a critical input to agriculture, Reserve Bank of India (RBI) have played a vital role in creating a broad-based institutional framework for catering to the increasing credit requirements of the sector.

Agricultural policies in India have been reviewed from time to time to maintain pace with the changing requirements of the agriculture sector, which forms an important segment of the priority sector lending.

The Indian economy has emerged as one of the fastest growing emerging market economies and the Indian banking sector. The Reserve Bank of India has initiated measures to liberalize the financial system recognizing the role of exports in the overall growth process of the economy.


The Government of India and the Reserve Bank of India have, over time, taken several measures to ensure adequate flow of credit towards export related activities. At present, exporters have the option to avail of pre-shipment and post-shipment credit in foreign currency from banks in India.

In order to encourage competition among banks and also to increase flow of credit to the export sector, the Reserve Bank of India has liberalised interest rates.

RBI has also drawn certain guidelines for commercial Banks where the banks should independently assess the “credit risk while issuing cards to persons. With the rapid growth in the number of mobile phone few banks have started offering information based services like balance enquiry, stop payment instruction of cheques, record of last five transactions, location of nearest ATM/branch etc.

Considering that the technology is relatively new and due care needs to be taken on security of financial transactions, there has been an urgent need for a set of operating guidelines that can be adopted by banks.