Open Market Operations: The RBI directly buys or sells the securities and bills in the money market either to decrease or to increase the total volume of money.

(a) Banking Department: The bank has seven offices of Banking Department
(i) Public Accounts Department
(ii) the Public Debit Office
(iii) Deposit Accounts Department
(iv) Securities Department.
(b) Issue Department:
(i) General Department,
(ii) Cash Department.
(c) Central Policy Department:
(i) Credit Planning Cell
(ii) Personal PolicyDepartment.
(iii) Administration Department.

Banks can be classified on the basis of their functions, ownership and schedules.
(a) On the basis of functions, the types of banks are:
(i) Commercial Banks
(ii) Industrial Banks
(iii) Regional Rural Banks
(iv) Exchange Banks and
(v) Central Bank.
(b) On the basis of ownership, the Banks are:
(i) Public sector Banks
(ii) Private sector Banks and
(iii) Co-operative Banks .
(c) On the basis of schedules of RBI,the Banks are:
(i) Scheduled Banks and
(ii) Non-scheduled Banks.

National Bank for Agriculture and Rural Development.

(i) Rationing of Credit
(ii) Marginal requirement
(iii) Direct Action
(iv) Moral Suasion

(i) Banker and financial advisor to the government
(ii) Monopoly of note issue
(iii) Banker's bank
(iv) Controller of credit and liquidity

(i) India's representative in World Financial Institutions
(ii) Regulator and supervisor of Indian Banking System
(iii) Monetary authority
(iv) Closely monitoring economic parameters
(v) Promptly responding to new challenges

According to Banking Regulation Act 1949, "Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and with drawable by cheque,draft, pay order or otherwise".

Government of India on the recommendation of the RBI carried out demonetization on November 8, 2016 in order to : -
i. Drive out counterfeit currency in circulation.
ii. To crack a whip against black money.
iii. Formalization of cash dependent business and
iv. Dismandling the financial strength of terrorism and naxalism.

(i) The methods which influence the total volume of credit in Indian economy are called quantitative or general methods.
(ii) An increase in the first three measures will reduce the volume of money in circulation in India and vice versa.
(1) Bank Rate Policy:
Bank rate refers to the rate at which the RBI rediscounts the bills given by the Scheduled banks.
(2) Cash Reserve Ratio (CRR):
It is the ratio of Cash reserves with the RBI kept by Scheduled banks in proportion to the total Time and Demand Liabilities with them.
(3) Statutory Liquidity Ratio (SLR):
It is the ratio of money and money equivalents kept within the bank in proportion to the Time and Demand Liabilities with them.
(4) Open Market Operations:
The RBI directly buys or sells the securities and bills in the money market either to decrease or to increase the total volume of money.

Banking Ombudsman offices:
The Banking Ombudsman scheme, 1995 was notified by RBI on June 14, 1995 in terms fo the power confessed on the Bank by Section 35A of the Banking Regulations Act 1949 (10 of 1949) to provide for a system of redressal of grievances against banks. The scheme sought to establish a system of expeditions and inexpensive resolutions of customers complaints. The scheme is operation since 1995 and was revised during the year 2002. The scheme is being executed by Banking Ombudsman appointed by RBI at 15 centres covering the entire country.

The non-performing asset (NPA) situation has been one of the contentious issue in the country over the last few years. Even though demonstration has been issueed. Recently, the issue of NPAs has been at the foremost of the banking fraternity's concerns in the last year. In the context of an ordinance issued by the government to provide more independence to the Rese~e Bank of India (RBI), it is important to understand what can really be done, considering that RBI has more powers to address this issue. The question for the RBI now is "How will it solve the problem?". While experts have commented on various measures, it would also be prudent to look across the border to China to see how to deal with this.
1. The first was to reduce risks by strengthening banks and spearheading reforms to the state-owned enterprises (SOEs) by reducing their level of debt.
2. The second important measure was enacting laws that allowed the creation of assets management companies, equity participation and most importantly asset-based securitization.
3. The third key measure that the China took was to ensure the government had the financial loss of the debt "discounted" and debts equity swaps were allowed in case of growth opportunity.
4. The fourth measure they took was producing incentives like tax breaks, exemption from administrative fees and transparent evaluation norms.
To conclude, it is important to look after some of the key measures taken by other countries to address the NPA issue. India should learn from it, especially is the context of valuations, securitization and more targeted NPA redresal mechanism.                                                                                                                                                                                                  

(i) Banker and Financial advisor to the Government:
(1) The RBI accepts money into the central and state governments accounts and make payments on their behalf.
(2) It manages government debts and is responsible for issue of new loans.
(3) It advises the government on the quantum, timing and terms of new loans.
(4) It provides 'ways and means advances' to the Governments to tide over temporary financial needs.
(5) It takes up the responsibility of investment of the surplus Government funds.
(6) Inter Government and inter departmental account adjustments are carried out by the RBI.
(ii) Monopoly of Note Issue:
(1) The RBI is the sole authority for the printing and issue of all currency notes in India except one rupee note.
(2) It is the duty of the RBI to ensure that sufficient number of good quality currency notes is available to the public.
(3) It exchanges currency notes and coins not fit for circulation. The One rupee note and all coins are issued by the Ministry of Finance.
(4) Currency notes are printed at Nasik, Dewas, Salboni, Mysore and Hoshangabad. (Currency notes are never printed outside India).
(iii) Banker's Bank:
(1) The relationship between RBI and other banks is just like the relationship of a commercial bank with its customers.
(2) The RBI maintains the current accounts of all commercial banks in the country. All scheduled banks should deposit a percentage of cash reserve with RBI.
(3) All banks can receive loans from RBI by rediscounting of bills and against approved securities.
(iv) Controller of Credit and Liquidity:
(1) Controlling the credit money in circulation and the interest rate in the country is a major function of RBI.
(2) For this purpose, the RBI uses quantitative and qualitative methods of credit control.
(3) Ensuring the availability of sufficient cash and credit (liquidity) for business transactions and investment purposes in the economy is the responsibility of RBI.
(v) Lender of the Last resort:
(1) In times of emergency any bank in India can approach RBI for financial assistance
(2) RBI provides them credit. When other sources of getting credit are exhausted, all banks can obtain loan from RBI and hence it is called lender of last resort.
(vi) Clearing house service:
(1) RBI acts as clearing house and maintains a clearing system for all commercial banks in India.
(2) The aggregate amount of cheques presented by a bank on other banks represents the claim by that bank on other banks.
(3) Similar claims are made by all the banks on every other bank in the clearing.
(4) A net settlement is arrived at the clearing house and accordingly the debit or credit entry is made in their current accounts.
(vii) Custodian of foreign exchange reserves:
(1) The RBI maintains a reserve of gold and foreign currencies.
(2) When foreign exchange reserves are inadequate for meeting balance of payments problem, it borrows from the International Monetary Fund (IMF).
(3) It also administers exchange control of the country.
(viii) Maintenance of Foreign Exchange Rate:
(1) The RBI manages the exchange value of the rupee in order to facilitate India's foreign trade and payments.
(2) It ensures that normal short-term fluctuations in trade do not affect the exchange rate.
(ix) Collection and Publication of Authentic Data:
(1) It has also been entrusted with the task of collection and compilation of statistical information relating to banking and other financial sectors of the economy.
(2) RBI issues monthly bulletin, annual reports and various committee reports contain treasures of authentic data.

(i) Indias' representative in the world Financial Institutions:
(1) In order to maintain consistency and harmony with international banking standards the RBI associated with the Basel Committee on Banking Supervision (BCBS - Switzerland) since 1997.
(2) RBI represents Government of India in International Bank for Reconstruction and Development (IBRD i.e. World Bank) and International Monetary Fund (IMF) in which India is a member since 27th December, 1945.
(ii) Regulator and Supervisor of Indian Banking System:
(1) The broad guidelines for all banking operations in the country are formulated by the RBI.
(2) The RBI has power to issue licenses, control and supervise commercial banks under the RBI Act, 1934 and the Banking Regulation Act, 1949.
(3) It conducts inspection of the commercial banks and calls for returns and other necessary information from them.
(iii) Monetary Authority:
(1) The RBI formulates, implements and monitors the monetary policy of the country in order to maintain price stability, controlling inflationary trends and economic growth. It provides advices to the Government concerning agricultural finance, resource mobilization for implementing plans and legislation affecting banking and credit and international finance.
(iv) Closely Monitoring Economic Parameters:
(1) Broad economic parameters such as employment level, price levels and production levels, trade cycles, foreign' investment flows, balance of payments, financial markets, etc., are closely monitored by the RBI in order to achieve economic stability and growth.
(2) The Board of Financial Supervision (a committee of the Central Board of Directors) of the RBI meets at least once in a month (at times every day) to closely monitor all these current developments in the country.
(v) Promptly Responding to New  Challenges:
(1) Whenever challenges arose before Indian Banking System, RBI promptly attend them by issuing Master Circulars and by organising committees to analyse, review and strengthen Indian Banking.
(2) A wealth of information can be found in every Master Circular or committee report.
(3) Example: Gopalakrishnan Committee on "Information security, Electronic Banking", April, 2010.