Organisation and Functions

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

Establishment The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

The Central Offi ce of the Reserve Bank was i ni ti all y establi shed i n Cal cutta but was pe rmanentl y moved to Mu mbai i n 1937. The Central Offi ce i s where the Governor si ts and where poli ci es are formul ated.

Though ori gi nall y pri vatel y owned, since nationali sati on i n 1949, the Reserve Bank i s full y owned by the Government of India. Preamble

The Preambl e of the Reserve Bank of Indi a descri bes the basi c functi ons of the Reserve Bank as:

"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
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Central Board

The Reserve Bank''s affairs are governed by a central board of directors. The board i s appointed by the Government of India in keeping with the Reserve Bank of India Act.

Appoi nted/nomi nated for a peri od of four years Constitution:

o o

Official Directors

Ful l-ti me : Governor and not mo re than four Deputy Governors No mi nated by Government: ten Di rectors from vari ous fi el ds and one government Offi ci al Others: four Directors - one each from four local boards

Non-Official Directors

Functions : General superintendence and direction of the Bank''s affairs

Names and addresses of the Directors of the Central Board of the Reserve Bank of India 1. Dr. D. Subbarao Governor Reserve Bank of India Central Office Mumbai 400 001. @10. Shri Azim Premji Chairman, WIPRO Limited Doddakannelli, Sarjapur Road, Bangalore 560033 Shri Kumar Mangalam Birla Chairman, Aditya Birla Group of Companies Aditya Birla Centre, S. K. Ahire Marg, Worli Mumbai 400 030

2.

Dr. K.C. Chakrabarty Deputy Governor Reserve Bank of India Central Office Mumbai 400 001.

@11.

3.

Dr. Subir Gokarn Deputy Governor Reserve Bank of India Central Office Mumbai 400 001. Shri Anand Sinha Deputy Governor Reserve Bank of India Central Office Mumbai 400 001. Shri H.R. Khan Deputy Governor Reserve Bank of India Central Office Mumbai 400 001.

@12

Prof. Dipankar Gupta 1 Palam Marg (Annexe) Vasant Vihar New Delhi 110 057

4.

@13.

Shri Najeeb Jung V.C. Lodge Khan Abdul Ghaffar Khan Enclave Jamia Nagar New Delhi 110 025 Shri G.M. Rao Chairman, GMR Group IBC Knowledge Park, Phase 2 "D" Block, 9th Floor 4/1, Bannerghatta Road Bangalore - 560 029 Ms. Ela Bhatt Self Employed Women's Association SEWA Reception Centre, Opp. Victoria Garden, Bhadra Ahmedabad - 380 001 Dr. Indira Rajaraman Honorary Visiting Professor Indian Statistical Institute B-2 /2395, Greenglade Apartments Vasant Kunj New Delhi - 110 018 Shri R. Gopalan Secretary (DEA) Government of India Ministry of Finance New Delhi 110001

5.

@14.

*6.

Dr. Anil Kakodkar Flat no. 1104 Bldg. No.5 Accolade Co-op Housing Society Hajuri Dargah Road, Behind LIC, Thane (W) 400 604 Shri Kiran Karnik Q-2A, Hauz Khas Enclave New Delhi 110 016

@15.

*7.

@16.

*8.

Prof M.V. Rajeev Gowda 1361, 9th Cross JP Nagar I Phase Bangalore 560078

#17.

@9.

Shri Y.H. Malegam Chartered Accountant C/o S. B. Billimoria & Company Meher Chambers (2nd floor) R. Kamani Road, Ballard Estate Mumbai 400 001

* Di rectors nomi nated under Sect 8 (1) (b) of the RBI Act, 1934. @ Di rectors nomi nated under Sect 8 (1) (c) of the RBI Act, 1934. # Di rector nomi nated under Sect 8 (1) (d) of the RBI Act, 1934. Dated October 17, 2011
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Local Boards

One each for the four regi ons of the country i n Mumbai , Cal cutta, Chennai and New Del hi Me mbershi p: consi st of fi ve me mbers each appoi nted by the Central Government for a term of four years

Functi ons : To advi se the Central Board on l ocal matters and to represent terri tori al and economi c i nterests of l ocal cooperati ve and i ndigenous banks; to perform such other functions as del egated by Central Board from ti me to ti me.

Names and Addresses of the Members of The Local Boards of The Reserve Bank of India Western Area 1. Shri Kiran S. Karnik Chairman Q 2A Hauj Khas Enclave, New Delhi 110016 1. Ms. Anila Kumari Bal Mahila Kalyan (BMK) Vikas Ashram Officer's Colony Mirchaibari Kathiar-854105 Bihar Shri Sharif Uz-zaman Laskar Kadiria Road Madhurband PO:Silchar Dist-Cachar Assam-788001 EASTERN AREA

2.

Shri K. Venkatesan 113, F-Block Anna Nagar East Chennai 600 040.

2.

3.

Shri Dattaraj V. Salgaocar Managing Director

V. M. Salgaocar & Bro. Ltd. Hira Bihar, Airport Road, Chicalim Vasco Da Gama, Goa - 403 711 4. Shri Jayantilal B. Patel Chairman Sahakari Khand Udyog Mandal Ltd. At & Post, Gandevi Sugar Factory Taluka Gandevi, District Navsari, Via Billimora Gujarat PIN-396 360

Mu mbai : Dated November 28, 2011

Northern Area 1. Shri Anil Kakodkar DAE-Homi Bhabha Chair Professor Flat No.1104, Bldg. No.5, Accolade Co-op. Hsg. Society, Hajuri Dargah Road, Behind LIC, Thane (W) , Maharashtra Dr. Ram Nath Ex-Professor & Vice Chancellor CSA University of Agri. & Tech. Plot No. 710, 'A' Block, Avas Vikas Colony, Hanspur, Naubasta, Kanpur - 208 001 Shri Kamal Kishore Gupta Chartered Accountant Kamal & Co. 1372, Kashmere Gate Delhi 110006 Shri Mihir Kumar Moitra H-205, Wembley Estate Rosewood City Sector-49-50 Gurgaon-122001 Shri A. Naveen Bhandary Vijaya Enclave Flat SA-23,Kumardhara Block Sundar Ram Shetty Nagar Bangalore -560076 1.

SOUTHERN AREA Prof. M.V.Rajeev Gowda 1361,9th Cross ,J.P.Nagar, I Phase, Bangalore-560078.

2.

2.

Dr. M. Govinda Rao Director National Institute of Public Finance and Policy 18/2, Satsang Vihar Marg Special Institutional Area (Near JNU) New Delhi 110 067 Shri K. Selvaraj No. 3, Subrmania Puram Road No. 2 R.S.Puram Coimbatore-641002 Shri Kiran Pandurang # 48,1st B Main Road J.S. Nagar Sarswathipuram Nandini layout Bangalore-560096

3.

3.

4.

4.

5.

Mu mbai : Dated November 28, 2011

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Financial Supervision

The Reserve Bank of Indi a performs thi s functi on under the guidance of the Board for Fi nanci al Supervi sion (BFS). The Board was consti tuted i n November 1994 as a commi ttee of the Central Board of Di rectors of the Reserve Bank of Indi a. Objective

Pri mary objecti ve of BFS i s to undertake consoli dated supervi sion of the financi al sector compri si ng commerci al banks, fi nancial i nsti tuti ons and non -banki ng fi nance compani es. Constitution

The Board i s consti tuted by co-opting four Di rectors from the C entral Board as me mbers for a term of t wo years and i s chaired by the Governor. The Deputy Governors of the Reserve Bank are ex -offi ci o me mbers. One Depu ty Governor, usuall y, the Deputy Governor in charge of banki ng regulati on and supervi si on, i s nomi nated as the Vi ce -Chai rman of the Board. BFS meetings

The Board i s required to meet normal l y once every month. It consi ders i nspection reports and other super vi sory i ssues pl aced before i t by the supervi sory departments.

BFS through the Audi t Sub -Commi ttee al so ai ms at upgrading the quali ty of the statutory audi t and i nternal audi t functions i n banks and financi al i nsti tutions. The audit sub -commi ttee i ncl udes Deputy Governor as the chai rman and two Di rectors of the Central Board as me mbers.

The BFS oversees the functi oning of Department of Banki ng Supervi si on (DBS), Department of Non -Banki ng Supervi sion (DNBS) and Financial Institutions Division (FID) and gives directions on the regulatory and supervisory issues. Functions

So me of the initiati ves taken by BFS i ncl ude:

i. ii. iii. iv.

restructuring of the system of bank inspections introduction of off-site surveillance, strengthening of the role of statutory auditors and strengthening of the internal defences of supervised institutions.

The Audi t Sub-commi ttee of BFS has revi ewed the current system of concurrent audi t, norms of empanel ment and appoi ntment of statutory audi tors, the quali ty and coverage of statutory audi t reports, and the important i ssue of greater transparency and disclosure in the published accounts of supervised institutions. Current Focus

supervision of financial institutions consolidated accounting legal issues in bank frauds di vergence in assessments of non-performi ng assets and supervi sory rati ng model for banks.

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Regulation and Supervision of Payment systems

The Payment and Settlement Sy stems Act 2007(PSS Act 2007) empo wers the Reserve Bank of India to regul ate and supervi se the payment systems i n the country. The Act states that these powers wi ll be exercised by the Board for Regulati on and Supervi si on of Pay ment and Settlement Syste ms (BPSS) consti tuted b y i t for the purpose. The BPSS wi l l be a Commi ttee of the Reserve Bank of Indi a's Central Board. Objective and Functions

The functions of the BPSS wi ll be to l ay down poli ci es for regul ati on and supervi si on of the pay ment systems i n the country, l ayi ng down standards for exi sti ng and future payment systems, authori sati on of payment systems, determi nati on of the cri teri a for me mbershi p of payment syste ms i ncl udi ng conti nuati on, termi nati on and rejecti on of me mbershi p, overseei ng the admi ni stration of regul at i ons and gui deli nes framed under the PSS Act 2007, i ssui ng di recti ons to payment system operators, calli ng for returns/i nformati on, etc. Constitution

The BPSS consi sts of the Governor of the RBI as Chai rperson, Deputy Governors as Members out of whom the D eputy Governor who i s i n charge of the Department of Payment and Settl ement Systems wi l l be the Vi ce Chairperson and three Di rectors of Reserve Bank of Indi a Central Board will be me mb ers.

Two Executi ve Di rectors of Reserve Bank of Indi a and i ts pri nci pal Legal Advi ser will be permanent i nvi tees to the meeti ngs. Persons wi th experi ence in the fi eld of payment and settl ement systems may be i nvi ted to the meeti ngs of the BPSS ei ther as permanent or ad -hoc i nvi tees.

BPSS i s assi sted by the Department of Pay men t and Settl ement Syste ms. Current Focus

1. 2. 3. 4. 5.

Authori sati on/ refusal of authorisati on of/to payment syste ms. To l ay down poli ci es for encouragi ng the move ment from paper -based payment syste ms to el ectroni c modes of payments. Setti ng up of the regul atory frame work of newer pay ment methods. Enhancement of customer conveni ence i n payment systems. I mprovi ng securi ty and effi ci ency i n paper -based and electroni c modes of payment.

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Legal Framework Umbrella Acts

Reserve Bank of India Act, 1934

: governs

the Reserve Bank functions

Banking Regulation Act, 1949: governs the financial sector

Acts governing specific functions

Publi c Debt Act, 1944/Government Securi ti es Act (Proposed): Governs government debt market Securi ti es Contract (Regulati on) Act, 1956: Regul ates government securi ti es market Indian Coinage Act, 1906:Governs currency and coins Forei gn Exchange Regul ati on Act, 1973/ Forei gn Exchange Management Act, 1999: Governs trade and forei gn exchange market Pay ment and Settlement Syste ms Act 2007: Regul ation and supervi sion of the payment systems.

Acts governing Banking Operations

Co mpani es Act, 1956:Governs banks as compani es Banki ng Compani es (Acqui si ti on and Transfer of Undertaki ngs) Act, 1970/1980: Rel ates to nationali sati on of banks Bankers'' Books Evidence Act Banking Secrecy Act Negotiabl e Instruments Act , 1881

Acts governing Individual Institutions

State Bank of India Act, 1954 The Industri al Devel opment Bank (Transfer of Undertaki ng and Repeal ) Act, 2003 The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 Nati onal Bank for Agri cul ture and Rural Devel opment Act National Housing Bank Act Deposit Insurance and Credit Guarantee Corporation Act
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Main Functions Monetary Authority:

Formul ates, i mpl ements and mo ni tors the monetary poli cy. Objecti ve: mai ntai ni ng pri ce stabili ty and ensuri ng adequate fl ow of credi t to producti ve sectors.

Regulator and supervisor of the financial system:

Prescribes broad parameters of banki ng operati ons wi thi n whi ch the country''s banking and fi nanci al system functions. Objecti ve: mai ntai n publi c confidence i n the system, protect deposi tors'' i nterest and provide cost -effecti ve banking services to the public. Regulator and supervi sor of the payment syste m s

o o o

Authori ses setti ng up of payme nt systems Lays down standards for operation of the payment syste m Issues di recti on, call s for returns/i nformati on from pay ment sy stem operators.

Manager of Foreign Exchange

Manages the Forei gn Exchange Management Act, 1999. Objecti ve: to facili tate external trade and payment and promote orderl y devel opment and mai ntenance of forei gn exchange market i n Indi a.

Issuer of currency:

Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role

Performs a wi de range of promoti onal functi ons to support nati onal objecti ves.

Related Functions

Banker to the Government: performs merchant banki ng functi on for the central and the state governments; al so acts as their banker. Banker to banks: mai ntai ns banki ng accounts of all scheduled banks.
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Offices

Has 4 regional offices ,15 branches and 5 sub-offices.

Training Establishments Has six training establishments

Three, namel y, Col lege of Agri cul tural Banki ng, Bankers Trai ning College and Reserve Bank of India Staff College are part of the Reserve Bank Others are autonomous, such as, Nati onal Insti tute for Bank Management, Indira Gandhi Insti tute for Devel opment Research (IGIDR), Institute for Devel opment and Research i n Banki ng Technol ogy (IDRBT)

For detail s on trai ni ng establi shments, pl ease check thei r websites li nks whi ch are avail abl e i n Other Links. Subsidiaries

Fully owned: National Housing Bank(NHB), Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharati ya Reserve Bank Note Mudran Pri vate Li mi ted(BRBNMPL )

Ma jori ty stake: Nati onal Bank for Agri cul ture and Rural Devel opment(NABARD) .