DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name Staff Member : P. BADARINARAYANA
Designation : Sr. Lecturer
Branch : DCCP
Institute : Govt. Polytechnic, NELLORE
Year/Semester : VI Semester
Subject : BANKING II
Sub. Code : CCP-604(B)
Topic : Reserve Bank of India
Duration : 50 Mts.
Sub Topic : Obligations of Scheduled banks to
Reserve Bank of India
Teaching Aids : Animations
CCP604(B)51 1
Objective :

On completion of this period, you would be

able to
 Comprehend the obligations of Scheduled banks
to Reserve Bank of India.

CCP604(B)51 2
Introduction

In the last lesson we have seen

 Some of the obligations of the Scheduled banks
to the Reserve Bank of India.
 Today we will see some more obligations of
Scheduled Banks to Reserve Bank of India.

CCP604(B)51 3
OBLIGATIONS OF SCHEDULED
BANKS TO RESERVE BANK OF
INDIA (3)

CCP604(B)51 4
(8) Control over Management:

 The RBI is conferred various powers for

exercising effective control over constitution of
Board of Directors of Commercial Banks.
 The appointment, re-appointment, termination of
appointment of the chairman and chief executive
officer in India of a foreign bank requires the
previous approval of the RBI.

CCP604(B)51 5
(9) Audit of Annual Accounts:

 Banks are required to close their books of

account every year as on 31st March, and
 Prepare a balance sheet and profit and loss
account as prescribed in the Third Schedule to the
Banking Regulation Act.
 With the prior approval of the RBI, the accounts
have to be audited.

CCP604(B)51 6
(10) Board for Financial Supervision:

 To keep a close watch on financial markets and

avoid recurrence of crisis in the financial system
 Board for Financial Supervision, (BFS) was set up
under the aegis of Reserve bank under RBI (Board
for Financial Supervision) Regulation Act, 1994

CCP604(B)51 7
Board for Financial Supervision…

 With the objective of paying ;undivided attention to

the supervision of the ;institutions in the financial
sector.
 BFS comprises of a committee of Central Board of
Directors of the RBI.

CCP604(B)51 8
Summary:

Today we have seen some more Obligations of

scheduled banks to Reserve Bank of India.

CCP604(B)51 9
Frequently Asked Questions

1. Explain the obligations of Scheduled Banks to

Reserve Bank of India.

CCP604(B)51 10