5/6/2014 Reserve Bank of India

http://www.rbi.org.in/commonman/English/scripts/organisation.aspx 1/7
Establishment
Preamble
Central Board
Board for Financial Supervision
Board for Payment and Settlement
Systems
Local Boards
Legal Framework
Main Functions
Departments
Offices
Training Establishments
Subsidiaries

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Home >> English - Organisation and Functions

Organisat ion and Funct ions
Est ablishment
The Res er ve Bank of Indi a was es tabl i s hed on Apr i l 1, 1935
i n accor dance wi th the pr ovi s i ons of the Reser ve Bank of
Indi a Act, 1934.
The Centr al Offi ce of the Res er ve Bank was i ni ti al l y
es tabl i s hed i n Cal cutta but was per manentl y moved to
Mumbai i n 1937. The Centr al Offi ce i s wher e the Gover nor
s i ts and wher e pol i ci es ar e for mul ated.
Though or i gi nal l y pr i vatel y owned, s i nce nati onal i s ati on i n
1949, the Res er ve Bank i s ful l y owned by the Gover nment of
Indi a.
Preamble
The Pr eambl e of the Res er ve Bank of Indi a des cr i bes the
bas i c functi ons of the Res er ve Bank as :
"...t o r egulat e t he issue of Bank
Not es and keeping of r eser ves wit h
a view t o secur ing monet ar y
st abilit y in India and gener ally t o
oper at e t he cur r ency and cr edit
syst em of t he count r y t o it s
advant age."
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Cent ral Board
The Res er ve Bank' ' s affai r s ar e gover ned by a centr al boar d
of di r ector s . The boar d i s appoi nted by the Gover nment of
5/6/2014 Reserve Bank of India
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Indi a i n keepi ng wi th the Res er ve Bank of Indi a Act.
Appoi nted/nomi nated for a per i od of four year s
Cons ti tuti on:
Of f icial Direct ors
Ful l - ti me : Gover nor and not mor e than
four Deputy Gover nor s
Non-Of f icial Direct ors
Nomi nated by Gover nment: ten Di r ector s
fr om var i ous fi el ds and two gover nment
Offi ci al s
Other s : four Di r ector s - one each fr om four
l ocal boar ds
Functi ons : Gener al s uper i ntendence and di r ecti on of the
Bank' ' s affai r s
Names and addresses of the Directors of the Central Board of the
Reserve Bank of India
1.
Dr. Raghuram Rajan
Governor
@10.
Prof. Dipankar Gupta
2.
Shri H.R. Khan
Deputy Governor
@11.
Shri G.M. Rao
3.
Dr. Urjit R. Patel
Deputy Governor
@12.
Ms. Ela Bhatt
4.
Shri R. Gandhi
Deputy Governor
@13.
Dr. Indira Rajaraman
* 5.
Dr. Anil Kakodkar
@14.
Shri Y.C. Deveshwar
* 6.
Shri Kiran Karnik
@15.
Prof Damodar Acharya
* 7.
Prof M.V. Rajeev Gowda
#16.
Shri Arvind Mayaram
* 8.
Dr Nachiket M. Mor
#17.
Shri Gurdial Singh Sandhu
@9.
Shri Y.H. Malegam

Address:
C/o PCGM and Secretary
Secretarys Department
Reserve Bank of India
16 th floor, Central Office Building
Shahid Bhagat Singh Marg
Mumbai 400 001
* Di r ector s nomi nated under Sect 8 ( 1) ( b) of the RBI Act,
1934.
@ Di r ector s nomi nated under Sect 8 ( 1) ( c) of the RBI Act,
1934.
# Di r ector s nomi nated under Sect 8 ( 1) ( d) of the RBI Act,
1934 ( as amended) .
Dated Apr 29, 2014
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Local Boards
One each for the four r egi ons of the countr y i n Mumbai ,
Cal cutta, Chennai and New Del hi
Member s hi p:
cons i s t of fi ve member s each
appoi nted by the Centr al Gover nment
for a ter m of four year s
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Functi ons : To advi s e the Centr al Boar d on l ocal matter s and
to r epr es ent ter r i tor i al and economi c i nter es ts of l ocal
cooper ati ve and i ndi genous banks ; to per for m s uch other
functi ons as del egated by Centr al Boar d fr om ti me to ti me.
Names and Addresses of the Members of The Local Boards of The
Reserve Bank of India
Western Area EASTERN AREA
1.
Shri Kiran
S. Karnik
Address:
C/o Secretary to
the Western
Area Local
Board
The Regional
Director
Reserve Bank of
India
Main Building
Shahid Bhagat
Singh Marg
Mumbai 400
001
1.
Dr Nachiket
M. Mor
Address:
C/o Secretary to
the Eastern Area
Local Board
The Regional
Director
Reserve Bank of
India
15, Netaji
Subhas Road
Kolkata 700
001
2.
Ms. Anila
Kumari
3.
Shri Sharif Uz-
zaman Laskar
Mumbai : Dated Feb 13, 2014
Northern Area SOUTHERN AREA
1.
Shri Anil
Kakodkar
Address:
C/o Secretary
to the Northern
Area Local
Board
The Regional
Director
Reserve Bank
of India
6, Sansad Marg
New Delhi
110 001
1.
Prof.
M.V.Rajeev
Gowda
Address:
C/o Secretary to
the Southern
Area Local
Board
The Regional
Director
Reserve Bank
of India
Fort Glacis 16,
Rajaji Salai
Chennai 600
001
2.
Shri Kamal
Kishore
Gupta
2.
Shri K.
Selvaraj
3.
Shri Mihir
Kumar
Moitra
3.
Shri Kiran
Pandurang
4.
Shri A.
Naveen
Bhandary
Mumbai : Dated Feb 13, 2014
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Financial Supervision
The Res er ve Bank of Indi a per for ms thi s functi on under the
gui dance of the Boar d for Fi nanci al Super vi s i on ( BFS) . The
Boar d was cons ti tuted i n November 1994 as a commi ttee of
the Centr al Boar d of Di r ector s of the Res er ve Bank of Indi a.
Object ive
Pr i mar y obj ecti ve of BFS i s to under take cons ol i dated
s uper vi s i on of the fi nanci al s ector compr i s i ng commer ci al
banks , fi nanci al i ns ti tuti ons and non- banki ng fi nance
compani es .
Const it ut ion
The Boar d i s cons ti tuted by co- opti ng four Di r ector s fr om the
Centr al Boar d as member s for a ter m of two year s and i s
chai r ed by the Gover nor . The Deputy Gover nor s of the
Res er ve Bank ar e ex- offi ci o member s . One Deputy Gover nor ,
us ual l y, the Deputy Gover nor i n char ge of banki ng r egul ati on
and s uper vi s i on, i s nomi nated as the Vi ce- Chai r man of the
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Boar d.
BFS meet ings
The Boar d i s r equi r ed to meet nor mal l y once ever y month. It
cons i der s i ns pecti on r epor ts and other s uper vi s or y i s s ues
pl aced befor e i t by the s uper vi s or y depar tments .
BFS thr ough the Audi t Sub- Commi ttee al s o ai ms at
upgr adi ng the qual i ty of the s tatutor y audi t and i nter nal audi t
functi ons i n banks and fi nanci al i ns ti tuti ons . The audi t s ub-
commi ttee i ncl udes Deputy Gover nor as the chai r man and
two Di r ector s of the Centr al Boar d as member s .
The BFS over s ees the functi oni ng of Depar tment of Banki ng
Super vi s i on ( DBS) , Depar tment of Non- Banki ng Super vi s i on
( DNBS) and Fi nanci al Ins ti tuti ons Di vi s i on ( FID) and gi ves
di r ecti ons on the r egul ator y and s uper vi s or y i s s ues .
Funct ions
Some of the i ni ti ati ves taken by BFS i ncl ude:
i . r es tr uctur i ng of the s ys tem of bank i ns pecti ons
i i . i ntr oducti on of off- s i te s ur vei l l ance,
i i i . s tr engtheni ng of the r ol e of s tatutor y audi tor s and
i v. s tr engtheni ng of the i nter nal defences of s uper vi s ed
i ns ti tuti ons .
The Audi t Sub- commi ttee of BFS has r evi ewed the cur r ent
s ys tem of concur r ent audi t, nor ms of empanel ment and
appoi ntment of s tatutor y audi tor s , the qual i ty and cover age
of s tatutor y audi t r epor ts , and the i mpor tant i s s ue of gr eater
tr ans par ency and di s cl os ur e i n the publ i s hed accounts of
s uper vi s ed i ns ti tuti ons .
Current Focus
s uper vi s i on of fi nanci al i ns ti tuti ons
cons ol i dated accounti ng
l egal i s s ues i n bank fr auds
di ver gence i n as s es s ments of non- per for mi ng as s ets
and
s uper vi s or y r ati ng model for banks .
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Regulat ion and Supervision of Payment syst ems
The Payment and Settl ement Sys tems Act 2007( PSS Act
2007) empower s the Res er ve Bank of Indi a to r egul ate and
s uper vi s e the payment s ys tems i n the countr y. The Act s tates
that thes e power s wi l l be exer ci s ed by the Boar d for
Regul ati on and Super vi s i on of Payment and Settl ement
Sys tems ( BPSS) cons ti tuted by i t for the pur pos e. The BPSS
wi l l be a Commi ttee of the Res er ve Bank of Indi a' s Centr al
Boar d.
Object ive and Funct ions
The functi ons of the BPSS wi l l be to l ay down pol i ci es for
r egul ati on and s uper vi s i on of the payment s ys tems i n the
countr y, l ayi ng down s tandar ds for exi s ti ng and futur e
payment s ys tems , author i s ati on of payment s ys tems ,
deter mi nati on of the cr i ter i a for member s hi p of payment
s ys tems i ncl udi ng conti nuati on, ter mi nati on and r ej ecti on of
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member s hi p, over s eei ng the admi ni s tr ati on of r egul ati ons
and gui del i nes fr amed under the PSS Act 2007, i s s ui ng
di r ecti ons to payment s ys tem oper ator s , cal l i ng for
r etur ns /i nfor mati on, etc.
Const it ut ion
The BPSS cons i s ts of the Gover nor of the RBI as
Chai r per s on, Deputy Gover nor s as Member s out of whom the
Deputy Gover nor who i s i n char ge of the Depar tment of
Payment and Settl ement Sys tems wi l l be the Vi ce
Chai r per s on and thr ee Di r ector s of Res er ve Bank of Indi a
Centr al Boar d wi l l be member s .
Two Executi ve Di r ector s of Res er ve Bank of Indi a and i ts
pr i nci pal Legal Advi s er wi l l be per manent i nvi tees to the
meeti ngs . Per s ons wi th exper i ence i n the fi el d of payment
and s ettl ement s ys tems may be i nvi ted to the meeti ngs of
the BPSS ei ther as per manent or ad- hoc i nvi tees .
BPSS i s as s i s ted by the Depar tment of Payment and
Settl ement Sys tems .
Current Focus
1. Author i s ati on/ r efus al of author i s ati on of/to payment
s ys tems .
2. To l ay down pol i ci es for encour agi ng the movement
fr om paper - bas ed payment s ys tems to el ectr oni c
modes of payments .
3. Setti ng up of the r egul ator y fr amewor k of newer
payment methods .
4. Enhancement of cus tomer conveni ence i n payment
s ys tems .
5. Impr ovi ng s ecur i ty and effi ci ency i n paper - bas ed and
el ectr oni c modes of payment.
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Legal Framework
Umbrella Act s
Reserve Bank of India Act, 1934: gover ns the Res er ve
Bank functi ons
Banki ng Regul ati on Act, 1949: gover ns the fi nanci al
s ector
Act s governing specif ic f unct ions
Publ i c Debt Act, 1944/Gover nment Secur i ti es Act
( Pr opos ed) : Gover ns gover nment debt mar ket
Secur i ti es Contr act ( Regul ati on) Act, 1956: Regul ates
gover nment s ecur i ti es mar ket
Indi an Coi nage Act, 1906:Gover ns cur r ency and coi ns
For ei gn Exchange Regul ati on Act, 1973/ For ei gn
Exchange Management Act, 1999 : Gover ns tr ade and
for ei gn exchange mar ket
Payment and Settl ement Sys tems Act 2007: Regul ati on
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and s uper vi s i on of the payment s ys tems .
Act s governing Banking Operat ions
Compani es Act, 1956:Gover ns banks as compani es
Banki ng Compani es ( Acqui s i ti on and Tr ans fer of
Under taki ngs ) Act, 1970/1980: Rel ates to
nati onal i s ati on of banks
Banker s ' ' Books Evi dence Act
Banki ng Secr ecy Act
Negoti abl e Ins tr uments Act, 1881
Act s governing Individual Inst it ut ions
State Bank of Indi a Act, 1954
The Indus tr i al Devel opment Bank ( Tr ans fer of
Under taki ng and Repeal ) Act, 2003
The Indus tr i al Fi nance Cor por ati on ( Tr ans fer of
Under taki ng and Repeal ) Act, 1993
Nati onal Bank for Agr i cul tur e and Rur al Devel opment
Act
Nati onal Hous i ng Bank Act
Depos i t Ins ur ance and Cr edi t Guar antee Cor por ati on
Act
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Main Funct ions
Monet ary Aut horit y:
For mul ates , i mpl ements and moni tor s the monetar y
pol i cy.
Obj ecti ve: mai ntai ni ng pr i ce s tabi l i ty and ens ur i ng
adequate fl ow of cr edi t to pr oducti ve s ector s .
Regulat or and supervisor of t he f inancial syst em:
Pr es cr i bes br oad par ameter s of banki ng oper ati ons
wi thi n whi ch the countr y' ' s banki ng and fi nanci al
s ys tem functi ons .
Obj ecti ve: mai ntai n publ i c confi dence i n the s ys tem,
pr otect depos i tor s ' ' i nter es t and pr ovi de cos t- effecti ve
banki ng s er vi ces to the publ i c.
Regul ator and s uper vi s or of the payment s ys tems
Author i s es s etti ng up of payment s ys tems
Lays down s tandar ds for oper ati on of the
payment s ys tem
Is s ues di r ecti on, cal l s for r etur ns /i nfor mati on
fr om payment s ys tem oper ator s .
Manager of Foreign Exchange
Manages the For ei gn Exchange Management Act, 1999.
Obj ecti ve: to faci l i tate exter nal tr ade and payment and
pr omote or der l y devel opment and mai ntenance of
for ei gn exchange mar ket i n Indi a.
Issuer of currency:
Is s ues and exchanges or des tr oys cur r ency and coi ns
not fi t for ci r cul ati on.
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Obj ecti ve: to gi ve the publ i c adequate quanti ty of
s uppl i es of cur r ency notes and coi ns and i n good
qual i ty.
Development al role
Per for ms a wi de r ange of pr omoti onal functi ons to
s uppor t nati onal obj ecti ves .
Relat ed Funct ions
Banker to the Gover nment: per for ms mer chant banki ng
functi on for the centr al and the s tate gover nments ;
al s o acts as thei r banker .
Banker to banks : mai ntai ns banki ng accounts of al l
s chedul ed banks .
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Of f ices
Has 19 r egi onal offi ces , mos t of them i n s tate capi tal s
and 9 Sub- offi ces .
Training Est ablishment s
Has f ive t raining est ablishment s
Two, namel y, Col l ege of Agr i cul tur al Banki ng and
Res er ve Bank of Indi a Staff Col l ege ar e par t of the
Res er ve Bank
Other s ar e autonomous , s uch as , Nati onal Ins ti tute for
Bank Management, Indi r a Gandhi Ins ti tute for
Devel opment Res ear ch ( IGIDR) , Ins ti tute for
Devel opment and Res ear ch i n Banki ng Technol ogy
( IDRBT)
For detai l s on tr ai ni ng es tabl i s hments , pl eas e check thei r
webs i tes l i nks whi ch ar e avai l abl e i n Other Li nks.
Subsidiaries
Ful l y owned: Depos i t Ins ur ance and Cr edi t Guar antee
Cor por ati on of Indi a( DICGC) , Bhar ati ya Res er ve Bank Note
Mudr an Pr i vate Li mi ted( BRBNMPL)
Maj or i ty s take:



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