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History of RBI, Problems faced by RBI, 1969_85, 1994, 1993 - Coggle Diagram
History of RBI
1969 - 1999
next 40 years
1985
India started facing BoP problem
7th 5 yr plan
Importing more than export
Import debt rising
went till 1991
1991
Economic Crisis
India verge of Bankruptcy
RBI cant lend more loan to Govt.
low Forex
Growth Rate 5.49%
High Current account deficit
But what saved us
GOLD
by selling gold
Can Save Forex Reserve
Can maintain Imports
20 Metric Tonnes
Airlifted
Sold to UBS
after few moths repurchase by SbI
Returned to GOI
Finance Minister
Manmohan Singh
LPG reforms
Reforms in financial sector
reduce role of RBI
From Regulator - Facilitator Banks
Thus Private banks came
both Indian & Foreign
Slowly banks were given freedom
1995
Banks were allowed to fix their own interest rates
1999
idea of Debit & Smart Card
Modernisation in Banking Sector
2005
NEFT introduced
Online transfer
RBI's idea
Era of Internet Banking started
Conclusion
B4 1991
RBI acted as BOSS
After 1991
RBI acted as Mentor
Problems faced by RBI
1962
IND CHN war
1965
Nationwide Drought
INDO-PAK war
1971
East Pakistan
Bangladesh Liberation War
1973
Global Oil crisis
1975
Emergency in India
Lowered India's GDP growth
1969_85
92% of banks were nationalised
framed intervention policy like
CRR
SLR
Interest Rates
Visible Deposits
banks gave loans
1994
nationalised banks were allowed to tap Capital Market
Investing in International Shares & Bonds
Lending rates of commercial banks were deregulated banks ask their own lending rates
1993
Exchange rates became market determined
Guidlines for Licencing of New Banks in Private Sector were issued