1. are exorbitantly higher than the bank rate.

1. Lack of Adjustment in the Money Market:

Reserve Bank has succeeded in controlling the organised sector of the Money Market, but not the unorganised one. It has virtually failed in regulating or controlling the activities of rural money lenders and other indigenous bankers.

These bankers just do not come within the scope of the Reserve Bank.

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2. Lack of Uniformity in the Rate of Interest:

Because of the lack of control on different sectors of the money market, different rates of interest continue to prevail. Outside the organised sector of the money market, rates of interest are exorbitantly higher than the bank rate. Reserve Bank has rather miserably failed in this regard.

3. Lack of Bill Market:

Reserve Bank prepared a plan for the development of Bill Market in 1952. But till date there is no independent and organised widespread bill market in India. Bill Market in India does not receive first-rate Discountable Bills.

4. Insufficient Availability of Agricultural Credit:

Despite the fact that lot of steps have been initiated by the Reserve Bank to provide enough agricultural credit, its availability continues to be far behind its requirement. Agricultural credit it still being dominated by rural money lenders and other indigenous bankers who charge very high interest rates.

5. Insufficient Banking Facility:

During 46-years, after independence, Reserve Bank has tried to spread banking activity in all parts of the country. Yet it is not sufficient in view of the large size of population. Also, most of the banking activity is concentrated in urban areas. People in small villages and sub-urban areas still deprived of the banking facility.

6. Instability in the Internal Value of the Rupee:

Instability in the internal value of the rupee has been the biggest failure of the Reserve Bank. Because of the ever increasing circulation of money, prices have been rising almost non-stop. Value of the rupee has been reduced to just 7 Paise during the last 47-years or so.

7. Failure of the Banks:

Reserve Bank has also failed as a Bank of the Bankers its lack of assistance to the Commercial Banks caused their closure. Between 1939 to 1946 nearly 444 banks failed in the country. Closure of three banks in 1985 is also a notable point. Failure of the banks erodes faith of the people in the banking system.

8. Failure in Getting Sufficient Share in Foreign Exchange Business for the Indian Banks:

The Reserve Bank has yet not succeeded in getting the Commercial Banks any notable foreign exchange business. Foreign exchange business almost continues to be a monopoly of foreign banks. Some of the Indian Banks have opened their branches abroad, but not with any notable success so far.

9. Share Scam:

In 1992-93, country witnessed large scale share scam involving hundreds of crores of rupees. It was a glaring example of the failure of Reserve Bank of India.