Financial Inclusion

A minor study on

Critically analyzing role of

R.B.I. as a federal reserve

Submitted to: Submitted by:

Dr. A. K. Mohapatra Aditya Sharma

Anurag Sharma

Shashi Gaurav

Acknowledgement

We here by acknowledge that this minor study of role of RBI as a federal reserve couldn’t have been completed with continued guidance support and motivation provided by Respected Dr. A.K. Mohapatra.

We express our gratitude and look forward for his continued guidance and support.

Shashi Gaurav

Aditya Sharma

Anurag Sharma

Synopsis

This minor study evaluates and discusses on various events that happened in the Indian Economic scenario under the worldwide global economic distress and the role of R.B.I.in formulating and developing effective plans to combat this economic turmoil and to stabilize the economy.

This study focuses on various macroeconomic issues under the influence of R.B.I.’s policies and various industrial sectors and overall effect on them due to this turmoil and regulatory policies of R.B.I.

Introduction

The global financial environment entered a crisis phase in mid-September 2008, following the growing distress among large international financial institutions and the declaration of bankruptcy of Lehman Brothers. As credit markets froze, central banks across the world, along with the respective governments, responded with both conventional and unconventional measures. The knock-on effect of these unprecedented adverse global developments became evident in the macroeconomic performance of the Indian economy, particularly in the second half of 2008-09.

The Indian economy which was on a robust economic growth in 2007-08 averaging at 8.9% during the period 2003-04 to 2007-08 witnessed a...