Organisation and Functions

Establishment

The Reserve Bank of Ind ia was establ ished on Apr i l 1 , 1935 in accordance wi th the prov is ions of the  Reserve Bank of India Act, 1934 .

The Centra l Of f ice of the Reserve Bank was in i t ia l ly establ ished in Calcut ta but was permanent ly moved to Mumbai in 1937. The Centra l Of f ice is where the Governor s i ts and where pol ic ies are formulated.

Though or ig inal ly pr ivate ly owned, s ince nat ional isat ion in 1949, the Reserve Bank is fu l ly owned by the Government of Ind ia.

Preamble

The Preamble of the Reserve Bank of Ind ia descr ibes the basic funct ions of the Reserve Bank as:

". . . to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stabi l i ty in India and general ly to operate the currency and credit system of the country to i ts advantage."  

TopCentral Board

The Reserve Bank ' 's af fa i rs are governed by a centra l board of d i rectors. The board is appointed by the Government of Ind ia in keeping wi th the Reserve Bank of Ind ia Act .

Appointed/nominated for a per iod of four years Const i tu t ion:

EstablishmentPreambleCentral Board Board for Financial Supervision

 Board for Payment and Settlement Systems

 Local Boards

 Profile of Central Board Directors

Legal FrameworkMain FunctionsDepartmentsOfficesTraining EstablishmentsSubsidiaries

o Official Directors Ful l - t ime : Governor and not more than four Deputy

Governorso Non-Official Directors

Nominated by Government : ten Directors f rom var ious f ie lds and two government Of f ic ia ls

Others: four Di rectors - one each f rom four local boards

Funct ions : General super in tendence and d i rect ion of the Bank ' 's af fa i rs

Names and address of the Central Board of Directors of the Reserve Bank of India

1.Dr. Raghuram RajanGovernor

*6. Dr. Nachiket M. Mor

2.Shri Harun R. KhanDeputy Governor

@7. Shri Y.C. Deveshwar

3.Dr. Urjit R. PatelDeputy Governor

@8. Prof Damodar Acharya

4.Shri R. GandhiDeputy Governor

#9. Shri Shaktikanta Das

5.Shri S. S. MundraDeputy Governor

#10. Ms. Anjuly Chib Duggal

Address:C/o CGM and SecretarySecretary's DepartmentReserve Bank of India16th floor, Central Office BuildingShahid Bhagat Singh MargMumbai - 400 001

* Di rectors nominated under Sect 8 (1) (b) of the RBI Act , 1934.@ Directors nominated under Sect 8 (1) (c) o f the RBI Act , 1934.  # Di rectors nominated under Sect 8 (1) (d) of the RBI Act , 1934 (as amended).Dated: October 30, 2015

TopLocal Boards

One each for the four regions of the country in Mumbai , Calcut ta, Chennai and New Delh i

Membership: consis t o f f ive members each appointed by the Centra l Government for a term of four years

Funct ions : To advise the Centra l Board on local mat ters and to represent ter r i tor ia l and economic in terests of local cooperat ive and ind igenous banks; to per form such other funct ions as delegated by Centra l Board f rom t ime to

t ime.

Names and Addresses of the Members of The Local Boards of The Reserve Bank of India

Western Area EASTERN AREA

    Address:C/o Secretary to the Western Area Local BoardThe Regional Director Reserve Bank of IndiaMain Building Shahid Bhagat Singh MargMumbai – 400 001

1. Dr. Nachiket M. Mor

Address:C/o Secretary to the Eastern Area Local BoardThe Regional DirectorReserve Bank of India15, Netaji  Subhas  RoadKolkata – 700 001

2. Ms. Anila Kumari

3. Shri Sharif Uz-zaman Laskar

Mumbai : Dated Sept 22, 2015

Northern AreaSOUTHERN AREA

    Address:C/o  Secretary to the Northern Area Local BoardThe Regional Director Reserve Bank of India6, Sansad MargNew Delhi – 110 001

    Address:C/o Secretary to the Southern Area Local BoardThe Regional DirectorReserve Bank of IndiaFort Glacis 16, Rajaji Salai Chennai – 600 001

Mumbai : Dated Oct 20, 2015Top

Financial Supervision

The Reserve Bank of Ind ia per forms th is funct ion under the guidance of the Board for F inancia l Superv is ion (BFS). The Board was const i tu ted in November 1994 as a commit tee of the Centra l Board of Di rectors of the Reserve Bank of Ind ia.

Objective

Primary object ive of BFS is to under take consol idated superv is ion of the f inancia l sector compr is ing commerc ia l banks, f inancia l inst i tu t ions and non-banking f inance companies.

Constitution

The Board is const i tu ted by co-opt ing four Di rectors f rom the Centra l Board as members for a term of two years and is chai red by the Governor . The Deputy Governors of the Reserve Bank are ex-of f ic io members. One Deputy Governor , usual ly , the Deputy Governor in charge of banking regulat ion and superv is ion, is nominated as the Vice-Chairman of the Board.

BFS meetings

The Board is requi red to meet normal ly once every month. I t considers inspect ion repor ts and other superv isory issues p laced before i t by the superv isory depar tments.

BFS through the Audi t Sub-Commit tee a lso a ims at upgrading the qual i ty of the s tatutory audi t and in ternal audi t funct ions in banks and f inancia l inst i tu t ions. The audi t sub-commit tee inc ludes Deputy Governor as the chai rman and two Directors of the Centra l Board as members.

The BFS oversees the funct ion ing of Depar tment of Banking Superv is ion (DBS), Depar tment of Non-Banking Superv is ion (DNBS) and Financia l Inst i tu t ions Div is ion (FID) and g ives d i rect ions on the regulatory and superv isory issues.

Functions

Some of the in i t ia t ives taken by BFS inc lude:

i . rest ructur ing of the system of bank inspect ionsi i . in t roduct ion of o f f -s i te survei l lance,

i i i . s t rengthening of the ro le of s tatutory audi tors andiv . s t rengthening of the in ternal defences of superv ised inst i tu t ions.

The Audi t Sub-commit tee of BFS has rev iewed the current system of concurrent audi t , norms of empanelment and appointment of s tatutory audi tors, the qual i ty and coverage of s tatutory audi t repor ts , and the important issue of greater t ransparency and d isc losure in the publ ished accounts of superv ised inst i tu t ions.

Current Focus

superv is ion of f inancia l inst i tu t ions consol idated account ing legal issues in bank f rauds divergence in assessments of non-per forming assets and superv isory rat ing model for banks.

Top   Legal Framework

I. Acts administered by Reserve Bank of India

Reserve Bank of India Act, 1934 Publ ic Debt Act , 1944/Government Securities Act, 2006 Government Securities Regulations, 2007

Banking Regulation Act, 1949 Foreign Exchange Management Act, 1999 Secur i t isat ion and Reconstruct ion of F inancia l Assets and Enforcement

of Secur i ty In terest Act , 2002 (Chapter I I ) Credi t In format ion Companies(Regulat ion) Act , 2005 Payment and Settlement Systems Act, 2007

o Payment and Settlement Systems Regulations, 2008 and Amended up to 2011 and BPSS Regulations, 2008

o The Payment and Settlement Systems (Amendment) Act, 2015 - No. 18 of 2015

Factor ing Regulat ion Act , 2011

II. Other relevant Acts

Negot iable Inst ruments Act , 1881 Bankers ' Books Evidence Act , 1891 State Bank of Ind ia Act , 1955 Companies Act , 1956/ Companies Act , 2013 Secur i t ies Contract (Regulat ion) Act , 1956 State Bank of Ind ia Subsid iary Banks) Act , 1959 Deposi t Insurance and Credi t Guarantee Corporat ion Act , 1961 Banking Companies (Acquis i t ion and Transfer of Under tak ings) Act ,

1970 Regional Rura l Banks Act , 1976 Banking Companies (Acquis i t ion and Transfer of Under tak ings) Act ,

1980 Nat ional Bank for Agr icu l ture and Rural Development Act , 1981 Nat ional Housing Bank Act , 1987 Recovery of Debts Due to Banks and Financia l Inst i tu t ions Act , 1993 Compet i t ion Act , 2002 Indian Coinage Act, 2011   : Governs currency and coins Banking Secrecy Act The Industr ia l Development Bank (Transfer of Under tak ing and Repeal)

Act , 2003 The Industr ia l F inance Corporat ion (Transfer of Under tak ing and

Repeal) Act , 1993

TopMain Functions

Monetary Authority:

Formulates, implements and moni tors the monetary pol icy. Object ive: mainta in ing pr ice s tabi l i ty and ensur ing adequate f low of

credi t to product ive sectors.

Regulator and supervisor of the financial system:

Prescr ibes broad parameters of banking operat ions wi th in which the

country 's banking and f inancia l system funct ions. Object ive: mainta in publ ic conf idence in the system, protect deposi tors '

in terest and prov ide cost -ef fect ive banking serv ices to the publ ic .

Manager of Foreign Exchange

Manages the Fore ign Exchange Management Act , 1999. Object ive: to fac i l i ta te external t rade and payment and promote order ly

development and maintenance of fore ign exchange market in Ind ia.

Issuer of currency:

Issues and exchanges or dest roys currency and coins not f i t for c i rcu lat ion.

Object ive: to g ive the publ ic adequate quant i ty of suppl ies of currency notes and coins and in good qual i ty .

Developmental role

Performs a wide range of promot ional funct ions to suppor t nat ional object ives.

Related Functions

Banker to the Government : per forms merchant banking funct ion for the centra l and the state governments; a lso acts as thei r banker .

Banker to banks: mainta ins banking accounts of a l l scheduled banks.

TopOffices

Has 19 regional offices, most of them in state capitals and 9 Sub-offices .

Training Establishments

Has five training establishments

Two, namely, Col lege of Agr icu l tura l Banking and Reserve Bank of Ind ia Staf f Col lege are par t o f the Reserve Bank

Others are autonomous, such as, Nat ional Inst i tu te for Bank Management , Ind i ra Gandhi Inst i tu te for Development Research ( IGIDR), Inst i tu te for Development and Research in Banking Technology ( IDRBT)