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Organisation and Functions

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 Office of the Reserve Bank has been in Mumbai since inception. The Central Office is where the Governor sits and is where policies are formulated.

Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.

Preamble

The Preamble of the Reserve Bank of India describes the basic functions 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 is appointed by the Government of India in keeping with the Reserve Bank of India Act.

  • Appointed/nominated for a period of four years
  • Constitution:
    • Official Directors
      • Full-time : Governor and not more than four Deputy Governors
    • Non-Official Directors
      • Nominated by Government: ten Directors from various fields and one government Official
      • Others: four Directors - one each from four local boards

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.Y.V. Reddy,
Governor,
Reserve Bank of India,
Central Office,
Mumbai 400 001.
@10.

Dr. Amrita Patel
Chairman
National Dairy Development Board
Anand - 388 001.
2.

Dr. Rakesh Mohan
Deputy Governor
Reserve Bank of India
Central Office
Mumbai 400 001.
@11.

Shri K. P. Singh
Chairman, DLF Universal Limited,
DLF Centre, Sansad Marg,
New Delhi - 110 001.

3.

Shri.V.Leeladhar
Deputy Governor
Reserve Bank of India
Central Office
Mumbai 400 001.
@12.

Prof. Vijay Shankar Vyas
Professor Emeritus,
Institute of Development Studies,
Vasundhara Colony,
Gopal Pura Bypass,
Tonk Road
Jaipur - 302 018.
4.

Smt. Shyamala Gopinath
Deputy Governor
Reserve Bank of India
Central Office
Mumbai 400 001.
@13.

Shri Davinder Singh Brar
Davix Management Services Pvt. Ltd.,
301, Tower - B Global Business Park,
Mehrauli - Gurgaon Road,
Gurgaon - 122 001
Harayana.
5.

Smt. Usha Thorat
Deputy Governor
Reserve Bank of India
Central Office
Mumbai 400 001.
@14.

Shri Homi Phiroze Ranina
Advocate, Supreme Court of India,
506, Raheja Centre,
214 Backbay Reclamation,
Free Press Journal Road,
Mumbai - 400 023.

*6.

Shri Y.H. Malegam
Chartered Accountant
C/O S. B. Billimoria & Company
Meher Chambers (2nd floor)
R. Kamani Road, Ballard Estate
Mumbai 400 038.
@15.

Shri N. R. Narayana Murthy
Chairman & Chief Mentor
Infosys Tech. Ltd.,
Electronic City, Hosur Road,
Bangalore - 561 229.
*7.

Prof. Mihir Rakshit
Director,
Monetary Research Project,
ICRA Ltd.,
FMC Fortuna,
A10 & A11, 3rd Floor,
234 / 3 A, A.J.C. Bose Road,
Kolkata - 700 020.

@16.

Shri Suresh Krishna
Chairman & Managing Director,
Sundaram Fastners Ltd.
7th floor, 98-A,
Dr. Radhakrishnan Salai
Chennai - 600 004.

*8.

Shri K. Madhava Rao
Retd. IAS,
61, Whisper Valley,
H.S.Dargah Marg,
Serilingampalli (M)I,
Ranga Reddy District,
A.P. - 500 008.
@17.

Dr. Ashok Sekhar Ganguly
ICICI One Source Ltd.,
6th Floor, Peninsula Chanbers,
Ganapatras Kadam Marg,
Lower Parel,
Mumbai - 400 013.
@9.

Shri Ratan N. Tata
Chairman
Tata Industries.
Bombay House
24, Homi Mody Street,
Mumbai 400 001.
@18.

Shri Ashok.K.Jha,
Secretary,
Department of Economic Affairs,
Ministry of Finance,
Government of India,
New Delhi.

* Directors nominated under Sect 8 (1) (b) of the RBI Act, 1934.
@ Directors nominated under Sect 8 (1) (c) of the RBI Act, 1934. &
# Director nominated under Sect 8 (1) (d) of the RBI Act, 1934. Mumbai, Dated the June 17, 2002

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Local Boards

  • One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi
  • Membership:
  • consist of five members each
  • appointed by the Central Government
  • for a term of four years

Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

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

WESTERN AREA

NORTHERN AREA
*1.

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

1.

Shri Mitha Lal Mehta,
Former Chief Secretary,
Government of Rajasthan,
5, Keshav Nagar, Gopalpura Road,
Jaipur - 302 018.

2.

Shri K.Venkatesan,
113, F-Block,
Anna Nagar East ,
Chennai - 600102.

2.

Dr. Ram Nath,
Ex-Professor & Vice Chancellor,
CSA University of Agri. & Tech.
Plot No. 710, 'A' Block,
Avas Vikas Colony, Hanspur, Naubasta,
Kanpur - 208001.

3.

Shri Dattaraj V. Salgaocar,
Managing Director,
V.M.Salgaocar & Bro Ltd.,
Hira Vihar, Airport Road, Chicalim,
Vasco Da Gama,
Goa - 403 711.

3.

Dr. Pritam Singh,
Director, Management Development Institute,
Mehrauli Road, Sukhrali,
Gurgaon - 122 001.

4.

Shri Jayanti Lal Bavjibhai Patel,
Vice-Principal,
S.B.Garda College,
At & Post. Adada ,
Navsari (Gujarat),
PIN - 396 445.

   

5.

Prof. Mahendra Singh Sodha,
B 113, Niralanagar,
Lucknow - 226 020.

   


EASTERN AREA

SOUTHERN AREA

*1.

Prof. Mihir Rakshit,
Director,
Monetary Research Project,
ICRA Limited, FMC Fortune, A-13,
3rd floor, 234/3A, AJC Bose Road
Kolkata - 700020.

*1.

Shri K. Madhava Rao,
IAS (Retd.),
61, Whisper Valley,
H.S. Dargah Marg,
Serilingampalli (M) I,
Ranga Reddy District,
A.P. 500 008.

2.

Shri A.K. Saikia, Retd. IAS,
H-8, Sector-27,
Noida - 201 301.

2.

Shri C. P. Nair,
Retd. Chief Secretary to Government of Kerala,
Narayaneeyam,
Jawahar Nagar,
Thiruvananthapuram - 695 041.

3.

Shri Sovan Kanungo, Retd. IAS,
17/404, East End Apartment,
Mayur Vihar I (Extension),
New Delhi - 110 096.

3.

Dr S.Ramachander,
Director,
Institute for Financial Management and Research,
30, Kothari Road,
Chennai - 400 034.
   

4.

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.
 

5.

Smt. Devaki Jain,
Tharangavana, D-5, 12th Cross,
RMV Extension,
Bangalore - 560080.

* Representative on the Central Board, appointed w.e.f. November 27, 2000.

Mumbai, dated June 19, 2002.

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Legal Framework

Umbrella Acts

Acts governing specific functions

  • Public Debt Act, 1944/Government Securities Act (Proposed): Governs government debt market
  • Securities Contract (Regulation) Act, 1956: Regulates government securities market
  • Indian Coinage Act, 1906:Governs currency and coins
  • Foreign Exchange Regulation Act, 1973/Foreign Exchange Management Act, 1999: Governs trade and foreign exchange market

Acts governing Banking Operations

  • Companies Act, 1956:Governs banks as companies
  • Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980: Relates to nationalisation of banks
  • Bankers' Books Evidence Act
  • Banking Secrecy Act
  • Negotiable Instruments Act, 1881

Acts governing Individual Institutions

  • State Bank of India Act, 1954
  • The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
  • The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
  • National Bank for Agriculture and Rural Development Act
  • National Housing Bank Act
  • Deposit Insurance and Credit Guarantee Corporation Act

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Main Functions

Monetary Authority:

  • Formulates, implements and monitors the monetary policy.
  • Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system:

  • Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
  • Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.

Manager of Foreign Exchange

  • Manages the Foreign Exchange Management Act, 1999.
  • Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

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 wide range of promotional functions to support national objectives.

Related Functions

  • Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
  • Banker to banks: maintains banking accounts of all scheduled banks.

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Offices

Training Establishments

Has six training establishments

  • Three, namely, College of Agricultural Banking, Bankers Training College and Reserve Bank of India Staff College are part of the Reserve Bank
  • Others are autonomous, such as, National Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT)

For details on training establishments, please check their websites links for which are available in Other Links.

Subsidiaries

Fully owned: National Housing Bank(NHB), National Bank for Agriculture and Rural Development(NABARD), Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)

Majority stake: State Bank of India

Minority stake: Infrastructure Development Finance Company(IDFC)

 
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