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RBI - Brochure explaining RBI's Role and Functions in brief
Reserve Bank of India : Functions and Working

Departments

Customer Service Department

Department of Banking Operations and Development
Department of Banking Supervision
Department of Communication
Department of Currency Management

Department of Economic & Policy Research

Department of Expenditure & Budgetary Control
Department of External Investments and Operations
Department of Government and Bank Accounts

Department of Information Technology

Department of Non-Banking Supervision (DNBS)
Department of Payment and Settlement System
Department of Statistics and Information Management
Financial Markets Department
Financial Stability Unit
Foreign Exchange Department
Human Resource Management Department

Inspection Department

Internal Debt Management Department

Legal Department

Monetary Policy Department

Premises Department
Rajbhasha Department
Risk Monitoring Department
Rural Planning and Credit Department
Secretary's Department

Urban Banks Department


 

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Customer Service Department

The Customer Service Department was constituted to provide proper focus to the entire range of customer service related activities of banks and the Reserve Bank of India. The Department started functioning from July 1, 2006.

  • Dissemination of instructions/information relating to customer service and grievance redressal by banks and Reserve Bank of India.
  • Overseeing the grievance redressal mechanism in respect of services rendered by various RBI offices/departments.
  • Administering the Banking Ombudsman (BO) Scheme.
  • Acting as a nodal department for the Banking Codes and Standards Board of India (BCSBI).
  • Ensuring redressal of complaints received directly by RBI on customer service in banks
  • Liaison between banks, Indian Banks Association, BCSBI, Banking Ombudsman offices and the RBI's regulatory departments on matters relating to customer services and grievance redressal.

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Department of Currency Management

Major Functions

  • The Department attends to the core statutory function of note and coin issue and currency management. This involves forecasting the demand for fresh banknotes and coins, placing the indent with four printing presses and mints, receiving supplies against those indents and distributing them through its 18 Issue Offices and one Sub office, one Currency Chest and a wide network of currency chests, (4428 as on June 30, 2006) and small coin depots (4102 as on June 30, 2006). The Department also keeps an account of banknotes in circulation and also the stocks at RBI offices and currency chests. (A currency chest is an extended arm of the Issue Department maintained with a commercial bank where the RBI stores fresh and re-issuable banknotes and allows the commercial banks to withdraw cash for its requirements and deposit its excess cash. A repository is an extension of the currency chest wherein a portion of the currency chest balance is permitted to be held at one or more other local branches of the same bank). Soiled banknotes are also stocked in the chests pending transportation to RBI.
  • The Department administers the Reserve Bank of India (Note Refund) Rules. The rules lay down the circumstances in which value of torn and mutilated banknotes can be refunded. Soiled banknotes, which are unfit for circulation is mopped up from circulation for destruction.
  • The Department reviews various security features of the currency notes for incorporation in the banknotes from time to time.
  • It studies the features of the counterfeit banknotes detected and seized with a view to determining the steps needed to be taken to strengthen the integrity of the banknotes.
  • The Department also acts as a nodal Department for the Bharatiya Reserve Bank Note Mudran Private Ltd.

Current Issues

  • The Department vigorously pursues its aim of putting clean banknotes in circulation in adequate quantity.
  • Enhancing the capacity at Regional Offices for examination and disposal of banknotes through installation of Currency Verification and Processing Systems, as and when the need arises.
  • Consider options to increase the circulation life of banknotes with a view to reduce / contain the printing cost of banknotes.
  • Improve customer service with particular reference to exchange of soiled banknotes and adjudication of mutilated banknotes.

List of Issue Offices

Ahmedabad, Banglaore, Belapur (Navi Mumbai), Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.

The sub office and currency chest are located at Lucknow and Kochi respectively.

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Urban Banks Department

Primary Cooperative Banks, popularly known as Urban Cooperative Banks (UCBs) are registered as cooperative societies under the provisions of, either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002. They are regulated and supervised by the Registrar of Cooperative Societies (RCS) of State concerned or by the Central Registrar of Cooperative Societies (CRCS), as the case may be. The applicability of banking laws to cooperatives societies since March 1, 1966 ushered in ?duality of control? over UCBs between the Registrar of Cooperative Societies/Central Registrar of Cooperative Societies and the Reserve Bank of India. The Reserve Bank regulates and supervises the banking functions of UCBs under the provisions of Banking regulation Act, 1949(AACS). Within the Reserve Bank, a separate department, viz. Urban Banks Department, has been entrusted with these functions. Urban Banks Department functions in close coordination with other regulators viz., RCSs and CRCS. The functions of the department can be broadly divided into (i) regulatory (ii) supervisory and (iii) developmental.

The Reserve Bank has been vested powers to issues licence to UCBs under Section 22 and 23 Banking Regulation Act, 1949 (AACS) to carry on banking business and to open new places of business(branches, extension counters, etc.) respectively. For this purpose, guidelines on the eligibility crieteria for issue of banking licence / branch licence are issued to UCBs from time to time. As a regulator, the Reserve Bank has prescribed prudential norms in various areas, e.g. capital adequacy, income recognition, asset classification and provisioning, exposure to single/group borrowers, exposures to sensitive sectors, loans and advances, investments, liquidity requirements, etc. Considering the heterogeneity in the sector, a differentiated regulatory regime is being adopted by Reserve Bank in certain aspects by grouping the UCBs under two Tiers (Tier I and II) based on their branch network, area of operation and the level of deposits.

The Banking Regulation Act, 1949(AACS) provides for submission of periodical returns by UCBs to the Reserve Bank of India. Further, under the powers vested in the Reserve Bank, it has prescribed various other periodical returns to be submitted by UCBs.

The Reserve Bank carries out on-site inspections and off-site surveillance of UCBs. It also issues directions and operational instructions to UCBs, wherever necessary to streamline the functioning and to protect the interests of the depositors.

As a part of developmental functions, the Reserve Bank imparts training to the officials of UCBs to upscale their knowledge, skill and expertise.

The Reserve Bank has entered into memorandum of understanding (MOU) with Central Government and various State Governments for harmonization of regulation and supervision.

The circular instructions issued to UCBs from time to time are placed in the Reserve Bank?s website. Further, for discharge of its functions, the Bank has prepared operation manual, Job Cards, manual for on-site inspection of UCBs, manual of instructions for UCBs, etc. and issues internal circulars/instructions from time to time.

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Activities of Rajbhasha Department

  1. To ensure the implementation of instructions/directions on the policy related suggestions and constitutional provisions on official language, Official Languages Act, Official Language Rules etc., as received from the Government of India, Department of Official Language.
  2. Translation of Annual Report, statutory reports, bulletins, newsletters, manuals, codes and other procedural literature and forms.
  3. Imparting training to officers/employees in Hindi language, Use of Hindi on computers, and English-Hindi translation.
  4. To ensure availability of Bilingual computers and mechanical equipments.
  5. To ensure Constitution of Official Language Implementation Committee at departmental as well as Regional Office levels and their regular meetings.
  6. To organise Rajbhasha Conference/Seminars.
  7. To administer incentive schemes to encourage work in Hindi
  8. To ensure implementation of annual targets for working in official language Hindi as per the Annual Programme received from the Government of India and prepare Annual Assessment Report based on actual achievements vis-a-vis targets fixed.
  9. To collect information regarding implementation of official language policy in Central Office Departments and Regional Offices through quarterly progress reports and inspection of Regional Offices and Central Office Departments.
  10. To ensure the implementation of the Presidential Orders on the Report of Committee of Parliament on Official Language as received from the Government of India, Department of Official Language and issue instructions to Central Office Departments and Regional Offices.
  11. To promote and publish reference material in Hindi, such as, Banking Shabdawali, etc.
  12. Publishing a quarterly Hindi Magazine, "Banking Chintan-Anuchintan" dedicated to banking.
  13. To increase the use of IT in Official Language Hindi.

Rural Planning and Credit Department

The Rural Planning and Credit Department (RPCD) formulates policies relating to rural credit and monitors timely and adequate flow of credit to the rural population for agricultural activities and rural employment programmes. The department formulates the policies relating to priority sector lending and monitors the credit extended by banks under priority sector. Priority sector refers to those sectors of the economy which, though viable and creditworthy, may not get timely and adequate credit in the absence of this special dispensation. Priority sector lending broadly includes (i) Agriculture (ii) Micro and Small Enterprises (iii) Education (iv) Housing and (v) Export Credit (For foreign banks with less than 20 branches only).  The department monitors the performance of banks under various poverty alleviation and employment generation programmes, which are known as Government Sponsored Schemes. It also implements and monitors the Lead Bank Scheme which is aimed at forging a coordinated approach for providing bank credit to achieve overall development of rural areas in the country.  RPCD's mandate flows from Section 54 of RBI Act 1934.

Reserve Bank is strongly committed to the financial inclusion agenda of the country and hence has taken a number of policy initiatives for bringing the financially excluded population within the ambit of the formal financial system. In particular, the RBI has fostered an enabling regulatory and policy environment through measures like, opening of basic banking account/no-frills accounts, relaxation in Know Your Customer norms, engaging business correspondents, use of technology adoption for Electronic Benefits Transfer, implementation of financial inclusion plans, spreading of financial literacy, organizing outreach campaigns, simplified branch authorization, opening of branches in unbanked villages, etc.

The department regulates the Regional Rural Banks, State Co-operative Banks and District Central Co-operative Banks, the latter two being part of short-term rural co-operative credit structure.

Broad Work Areas of the Department

  • Macro policy formulation in the area of rural credit.
  • Formulation of policies relating to priority sector lending.
  • Facilitating flow of credit to agriculture and micro and small enterprise sectors, education, housing, weaker sections, minorities communities, etc.
  • Monitoring of achievement of priority sector lending targets by domestic and foreign banks.
  • Allocation of funds on account of shortfall in achievement of priority sector lending targets to the corpus of RIDF and similar funds.
  • Facilitating financial inclusion and monitoring Financial Inclusion Plans (FIPs) of banks.
  • Enabling financial literacy initiatives through policy intervention.
  • Exercise of regulatory functions over Regional Rural Banks and State/ District Central cooperative Banks.
  • Implementing and monitoring Lead Bank Scheme.
  • Monitoring implementation of Government-sponsored poverty alleviation schemes.
  • Co-ordination with NABARD based on various statutory provisions.

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Foreign Exchange Department

With the introduction of the Foreign Exchange Management Act 1999, (FEMA) with effect from June 1, 2000, the objective of the Foreign Exchange Department has shifted from conservation of foreign exchange to "facilitating external trade and payment and promoting the orderly development and maintenance of foreign exchange market in India".

  • The new Act has brought about structural changes in the exchange control administration. Regulations have been framed for dealing with various types of transactions. These regulations are transparent and have eliminated case-by-case approvals.
  • All current account transactions are free from restrictions except
    • 8 transactions prohibited by the Government of India.
    • 11 transactions which require prior permission of the Government of India and
    • 16 transactions on which indicative limits are fixed by the Government and release of foreign exchange beyond those limits requires permission from the Reserve Bank. All Regional Offices of the Department have in turn been authorised to release exchange for such transactions.
  • For capital account transactions, the Reserve Bank regulations provide for general permissions/automatic routes for investments in India by non-residents, investments overseas by residents and borrowings abroad, etc.
  • The Department ensures timely realisation of export proceeds and reviews, on a continuous basis, the existing rules in the light of suggestions received from various trade bodies and exporters' fora.
  • The Department collects data relating to forex transactions from authorised dealers on a daily basis for exchange rate management and on a fortnightly basis for monthly quick estimates of balance of payments and quarterly balance of payments compilation.
  • The Department lays down policy guidelines for risk management relating to forex transactions in banks.
  • The Department is also entrusted with the responsibility of licensing banks/money changers to deal in foreign exchange and inspecting them.
  • There is a "Standing Consultative Committee on Exchange Control" consisting of representatives from various trade bodies and authorised dealers which meets twice a year and makes recommendations for policy formulation.
  • With a view of further improving facilities available to NRIs and removing irritants, the Department is also engaged, on an ongoing basis, in reviewing and simplifying the procedures and rules.

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Human Resource Management Department

HRMD Vision

The Vision of the Human Resource Management Department (HRMD) is essentially to facilitate the Bank to carry out central banking activities, i.e.

(i) To create an enabling environment to enhance the efficiency of the organization
(ii) To draw out from our staff the very best by a system of proper placements, incentives, &
(iii) To create an atmosphere of trust, a certain security of expectations and a feeling that the organization cares about the well being and personal aspirations of the staff. This would help align personal aspirations with professional goals and help enhance efficiency

HRMD Mission

The Mission of HRMD is to create a facilitating environment to enhance the efficiency of the Bank; to empower the staff so as to draw out the latent potential; and to catalyze conditions for a more wholesome quality of life on the work as well as personal front.

Functions of HRMD

a) To evolve HR policies on

  • Recruitment
  • Performance and Potential Appraisal
  • Placement
  • Promotion and Career Progression
  • Out of Turn Promotion/ Increment to Sports Person
  • Industrial Relations
  • Deputation / Secondment
  • Compensation Policy
  • Retirement and Voluntary Vacation
  • Motivation
  • Training Establishments
  • Mobility (Transfer/Rotation)
  • Remuneration and Reward Mechanism
  • Staff Welfare
  • Communication
  • Organisational Development
  • Training and Skills Upgradation (Policy and Implementation, both)
  • Medical

b) Other than policy aspects

  • Interface with other institutions, government, central banks, etc. on HRD issues
  • To maintain up to date database on human resources in the Bank and undertake analytical studies and ongoing research on different manpower related issues
  • To make ongoing review of the appraisal system in order to make it an effective tool for HRD policy management
  • To install and implement an effective counseling system
  • To design career and succession plans
  • To review and revitalize the training functions
  • Summer Placement
  • Formulate and administer the Staff Suggestion Scheme
  • Publication of House Journal, Without Reserve

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Financial Markets Department

Functions

The Financial Markets Department was constituted on July 6, 2005 with a view to providing an integrated market interface for the Bank and to bringing about integration in the Bank’s conduct of monetary operations. The mandated functions of the Department are as under:

  • monetary operations such as open market operations(OMO), liquidity adjustment facility (LAF), and market stabilisation scheme(MSS);
  • exchange rate management;
  • regulation and development of money market instruments such as call/term/notice money, market repo, collateralised borrowing and lending obligation, commercial paper(CP) and certificate of deposits (CD); and
  • monitoring of money, government securities and forex markets.

Functionally, the Department is organised into three groups viz. Market Analysis and Operations Group (MAOG), Market Surveillance and Research Group (MSRG) and Information Support and Services Group (ISSG). The responsibility of MAOG is primarily to conduct operations in the money, government securities and forex markets. As a part of this responsibility, the Group undertakes analysis of various market segments and provides inputs to the Top Management for informed decision making. The MSRG conducts research as well as monitoring of the various market segments towards the objectives of orderly functioning and development of the financial markets. Whilst monitoring enables the Department to perform its role of regulator, research is helpful in further reforms and development of the markets. The ISSG attends to the administrative functions, acts as the back-office for the market operations and deals with the IT related services.

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Financial Stability Unit

The Financial Stability Unit was set up on July 17, 2009. The main functions of the Unit include:

  • Conduct of macro-prudential surveillance of the financial system on an ongoing basis;
  • Preparation of financial stability reports;
  • Development of a data base of key variables which could impact financial stability in co-ordination with the supervisory wing of the Bank;
  • Development of a time series of a core set  of financial indicators;
  • Conduct of systemic  stress tests to assess resilience; and
  • Development of models for assessing financial  stability in due course.

Following India's inclusion in the Financial Stability Board (FSB), the Financial Stability Unit provides the Secretariat to the Bank's representative in the FSB.

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Inspection Department (Internal)

VISION

The Inspection Department would act as the eyes and ears of the Top Management and discharge its duties with utmost professionalism as the principal provider of independent and objective feedback on the working of the Bank to the Top Management to enable it to ensure that the Organization functions efficiently and effectively.

MISSION

Using its knowledge, skills and professional competence, the Inspection Department will carry out inspections to examine, evaluate and report on the adequacy and reliability of existing systems and follow-up to ensure that:

  • Laws, Regulations, Internal Policies and Procedures are meticulously followed
  • Assets are properly maintained/utilized/safeguarded
  • Financial crisis is avoided; operational and Reputational Risks are averted
  • Adequate safeguards are taken for Bank's physical/operational/IT security
  • >
  • Quality Customer Service is promptly extended

OBJECTIVES

Inspection Department was set up along with the formation of Reserve Bank of India in 1935. The objectives of the Department are as under:

  • To assess in clear terms the achieved and achievable performance of the Offices/branches and Central Office Departments with the available resources.
  • To suggest appropriate improvements so that performance level could be enhanced further.
  • To oversee the overall Audit function and its various mechanisms put in place.
  • To give feedback to the Top Management on the performance of Offices and Central Office Departments.

ORGANISATION OF THE DEPARTMENT

The Inspection Department of the Bank functions under the direct supervision of the Chief General Manager, who reports to an Executive Director (ED). To carry out the Departmental functions, the Department has the following sections.

  • Planning Section
  • Follow-up Section
  • Audit Monitoring Cell
  • IS Audit Section
  • Inspection and Audit Sub-Committee (IASC) Section
  • Administration Section
  • Inspection Teams

Planning Section

The Planning Section is responsible for drawing up and implementing the annual inspection plan. As per the current practice, inspections of Regional Offices are to be taken up once in 15-18 months and that of Central Office Departments once in 24-30 months. Presently, around 24 inspections are conducted every year. Generally, three teams, each headed by a General Manager, are formed. The activities of the Section include:
1. Preparation of Annual Calendar of Inspection Programmes & execution thereof
(i) Monitoring submission of Executive Summary to EDs and Management Audit Report (MAR) to ED/DG
(ii) Follow-up action, if required, on the comments made by ED/DG on MAR.
2. Half-yearly Review of Inspection Programmes
3. Bi-monthly BLMC meetings
4. Preparing Quarterly Activity Report of the Department
5. Follow-up Action on Special/Secret Notes submitted by Inspection Teams.
6. Updating Inspection Guidelines
7. Supply of Material/Information for Bank's Annual Report.
8. Maintenance and updation of Deployment Register
9. Liaison with CODs and Inspection teams
10. Any other activity, not specifically pertaining to other sections.

Follow-up Section

Follow-up Section is responsible for monitoring the position of compliance to various inspection reports. As per the current procedures, the auditee departments and offices are required to send their first compliance within 45 days from the date of completion of the inspection. Subsequent compliances should be sent to the Inspection Department every month. Full & final compliance is required to be achieved in not more than three months. As per the extant procedure, para-wise compliance is required to be submitted in respect of paragraphs marked major. In respect of other action paragraphs, the compliance is to be submitted to the HoD/RD concerned and the overall status of compliance is to be reported to Inspection Department. In other words, compliance of these paragraphs will be monitored and judged by the Head of the audittee office/department. Once compliance is received, the section evaluates and puts up the same to CGM for final approval. After scrutiny of the compliance, the status of the compliance could be either COMPLIED, MNP (may not be pursued) or OUTSTANDING. Paragraphs treated as MNP, along with the status of compliance as submitted by the auditee, usually will be looked into during the subsequent inspection. Paragraphs, where the action warranted cannot be completed within a short span of time will go under this category. For compliance scrutiny purpose, the manager directly reports to the GM concerned. Other activities of the section include:

  • Monitoring timely receipt and scrutiny of compliance to the Management Audit & Systems Inspection Reports.
  • Monitoring paragraphs identified as critical areas by EDs' Committee and furnishing compliance thereof for placing before the IASC.
  • Conducting Quarterly review of compliance reports
  • Maintenance of guard files of all circulars
  • Maintenance of suggestions register for incorporating the suggestions made in the Inspection Reports.

Audit Monitoring Cell

In accordance with the decision of the Top Management, an Audit Monitoring Cell (AMC) has been set up in Inspection Department. In principle approval has been given for setting-up of 4 Snap Audit-cum-Monitoring Teams (SNAM).
Under the above set-up, Inspection Department, Central Office, oversees the functioning of the Internal Audit Systems with a view to consolidating and co-ordinating all the activities relating to Concurrent Audit (CA) and Control Self Assessment Audit (CSAA) undertaken at all the Offices of the Bank and ensure its smooth functioning. To achieve the objectives, the Department shall keep the focus on off-site monitoring as well as on-site scrutiny, wherever necessary.
Off-site monitoring is undertaken by obtaining periodical returns from Offices, scrutinizing the same and initiating follow-up as deemed appropriate.
By way of on-site scrutiny for overseeing the arrangement of Concurrent Audit and CSAA System in the Bank, the SNAM will be visiting Offices periodically as and when considered necessary.

IS Audit Section

The main activities of the section relate to planning and performing of Information Systems Audit of important information processing facilities in the Bank. Apart from onsite inspection programs, this section needs to perform various developmental activities such as preparation of guidelines, audit tools and techniques, etc.

IASC Section

The Section is responsible for co-ordinating and arranging periodical meetings of IASC and EDs' Committee. Presently, the meetings of IASC and EDs' Committee are conducted once in two months (approx.). All Secretarial work for convening EDs' Committee and IASC meetings are performed by this Section. Various activities include preparation of agenda items for the above meetings, recording of minutes of these meetings, monitoring actions taken to the points made in the minutes, etc.

Administration Section

All administrative matters like attendance, leave, service records, posting, transfer, training, discipline, dispatch, maintenance of books of accounts, CSAA, local conveyance, LFC claims, newspaper, book grant, telephone, etc., are attended to by this Section. Implementation of Official Language Policy in the Department is looked after by Rajbhasha Cell.

Inspection Teams

The inspections are carried out by three Inspection Teams, each headed by a General Manager. Depending upon the auditee entity, the team composition is finalized. Each team has, generally 2 Assistant General Managers and 3 to 5 Managers. Team members are shuffled across teams depending upon their availability, core competencies, etc.

INSPECTION & AUDIT SUB-COMMITTEE (IASC)

The Committee of the Central Board, in its meeting held on 24th June 1992, recommended that an Inspection & Audit Sub-Committee of the Board may be set-up to review the Inspection and Audit Reports and their compliance at periodic intervals, and also with a view to giving a sharper focus to the internal audit and inspection exercises towards maximizing productivity and efficiency of operations.
The IASC comprises of four Directors of Central Board, as nominated by the Governor, DG and ED in-charge of Inspection and ED in-charge of Administration as its members. CGM, Inspection Department acts as the Member-Secretary to the Committee. The other DGs/EDs are invited to attend the meetings of IASC. The Sub-Committee meets about 5 to 6 times in a year.
The outstanding paragraphs of all Inspection Reports, together with critical areas, as identified by the EDs' Committee are submitted to the IASC for discussion and direction. Further, IASC also deliberates over the Statutory Auditors' Report on Bank's Annual Accounts together with comments furnished by the Controlling Central Office Department i.e. DGBA (Department of Government and Bank Accounts). The External Auditor's Report on the Dealing Room operations of Department of External Investments & Operations (DEIO) is also deliberated upon by the IASC. The Sub-Committee reviews all aspects of Inspection & Audit and gives necessary directions for bringing about improvement in the system.

EXECUTIVE DIRECTORS' COMMITTEE

All Inspection Reports are first reviewed by the EDs' Committee. The compliance position of all Inspection Reports, before being put up to the IASC for deliberations are reviewed/discussed in the EDs' Committee meeting in the presence of the concerned Regional Director/Head of the Department. Thereafter, serious irregularities which may or has led to potential loss to the Bank, frauds, etc., deviations from laid down policies, non-implementation of decided policies and other critical areas are identified by the EDs' Committee for submission to the IASC.

STREAMS OF INSPECTION IN THE BANK

In order to enhance the effectiveness of the internal inspection process, various types of inspections are instituted with specific objectives. Presently, the following types of inspections are carried out/co-ordinated by the Inspection Department.

  • Management Audit & System Inspection
  • Information System Audit
  • Concurrent Audit
  • Control Self Assessment Audit

Management Audit & Systems Inspection (MA & SI)

Under the MA & SI, the Inspection Teams examine, evaluate and report on the adequacy and reliability of existing systems and follow-up to ensure that Laws, Regulations, Internal Policies and Procedures are meticulously followed and the work is carried out as per defined procedures and Central Office Instructions. Apart from conducting systems Inspection, the Team also conducts the Management Audit under which the effectiveness of Organizational Goals, Delegation of Power, Customer Service in the Department/Office, Management Efficacy etc., are judged.

Information System Audit

The objectives of IS Audit are to verify -

  • Whether the valuable IT resources are properly safeguarded from all threats and exposures.
  • Whether the mechanisation/computerisation processes ensure the Confidentiality, Integrity and Availability of the data it processes.
  • Whether the IT resources are utilized effectively and efficiently.
  • Whether the personnel are adhering to established policies and procedures.
  • Whether existing security controls, backup, and other procedures are sufficient to prevent catastrophic data loss or incorrect modification of data.

The scope of IS Audit include -

  • IS Audit shall review all aspects of information processing in the computerized environment of the Central Office Departments and the Regional Offices of the Bank.
  • It shall include evaluation of the compliance of the user Departments/Regional Offices with general policies and guidelines circulated by the DIT, CO. It shall also include reviewing the propriety of the process of acquiring the resources (including Hardware and Software/Services) from vendors.
  • It shall assess the vendor reliability in providing and servicing the IT Systems which principally determines both the robustness as well as the reliability of the systems in day-to-day working.
  • It shall assess the adequacy of the overall preparedness for crisis management during events of catastrophic failures.
  • It shall assess the adequacy of competencies of staff operating and managing the IT Systems.
  • It shall verify adherence by auditee units with the Systems and Procedure Manuals of the applications used by them.
  • It shall also include performing a cost-benefit analysis of the IT Resources procured by the Bank.
  • The scope of IS Audit shall also include collection and evaluation of evidence to determine whether the Information Systems in use safeguard assets, maintain Data Integrity, Confidentiality and Availability, achieve Organizational Goals effectively and utilize resources efficiently.
  • The IS Audit Activity shall also include identification of various security controls existing in IS environments and assessment of their adequacies to provide recommendations wherever necessary.


Concurrent Audit System

The Committee on Job Realignment/Job Consolidation-Implementation recommended, interalia, that Regional/Central Audit Cells (RACs/CACs) be wound up and their functions be taken over by Inspection/CSAA/Concurrent Audit. Accordingly, the RACs/CACs were wound up with effect from 1-7-2004 and their work was trifurcated amongst the concurrent Audit System, CSAA and Management Audit and Systems Inspections.

Control Self Assessment Audit (CSAA)

As a sequel to the recommendation of "Sharma Working Group", CSAA was introduced in the Bank in July 1999. The aim is to enable the various Departments to carry out regular health check-ups and assess weaknesses, so that timely reviews are made and corrective action taken/initiated. Initially, the objective was to facilitate review of internal controls at frequent intervals and reinforce the efforts of regular inspection and audit machinery in this regard. With the winding up of the Regional/Central Audit Cells/(RACs/CACs) with effect from July 1, 2004, the scope and responsibilities of CSAA have been widened/amplified.

ISO: 9001-2000 AND BS-7799 CERTIFICATION

The Bank has decided to obtain ISO 9001-2000 Certification for select work areas/Departments of the Bank viz. Currency Management, Public Debt Office, Public Accounts Department, Deposit Accounts Department and DAPM/HRDD. Inspection Department has been entrusted with the job of coordinating the ISO Project. A core group has been constituted for co-ordinating work in this regard. Subsequently, it was decided by the Bank that Certification under BS-7799 (relating to Information Security) may also be obtained. Accordingly, necessary action regarding certification under that Standard has also been initiated. As decided, the ISO:9001-2000 Certification for Issue & Banking Departments at Kolkata and Hyderabad ROs alongwith the CODs concerned, viz., DCM & DGBA and BS 7799 for DEIO & IDMD, will be obtained, to begin with.

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Department of Banking Supervision

The Reserve Bank of India has been entrusted with the responsibility of supervising the Indian banking system under various provisions of the Banking Regulation Act, 1949 and RBI Act, 1934. As regards commercial banks and FIs, this responsibility is discharged through the Department of Banking Supervision (DBS), which supervises 92 commercial banks and 9 select financial institutions (FIs), through its 16 Regional Offices.

Core Functions

The Department of Banking Supervision at present exercises the supervisory role relating to commercial banks and select FIs in the following forms :

a. Undertaking scheduled and special on-site inspections of banks, their off-site surveillance as also post inspection follow-up of compliance.

b. Serving as the secretariat for the Board for Financial Supervision (BFS).

c. Determining the criteria for the appointment of statutory auditors and special auditors and assessing audit performance and disclosure standards.

d. Dealing with financial sector frauds and attending to the complaints received against the banks and FIs from public, banks, Government, etc.

e. Exercising supervisory intervention in the implementation of regulations which includes - recommendation for removal of managerial and other persons, suspension of business, amalgamation, merger/winding up, issuance of directives and imposition of penalties.

In 2004, the work relating to inspection of Authorised Dealers has also been transferred from the Foreign Exchange Department to this Department.

Supervisory Process

A high powered Board for Financial Supervision (BFS), comprising the Governor of RBI as Chairman, one Deputy Governor as Vice Chairman, other Deputy Governors and four Directors of the Central Board of RBI as Members was constituted in November 1994 with the mandate to exercise the powers of supervision and inspection in relation to the banking companies, financial institutions and non-banking financial companies. Presently, BFS exercises supervision not only over banks but also over select Developmental Finance Institutions (DFIs), Non-banking Financial Companies (NBFCs), Primary Dealers (PDs) and Urban Cooperative Banks (UCBs).

Supervisory Strategy

The Department of Banking Supervision has formulated and put in place a supervisory strategy which, besides retaining the importance of on-site inspections which has been the main plank of banking supervision, also focuses on three other areas:

  • off-site monitoring through introduction of a set of Returns;
  • strengthening of the internal control systems in banks and
  • increased use of external auditors in banking supervision.

Current Focus

1. An On-site Annual Financial Inspection system which focuses on statutorily mandated areas of solvency, liquidity and operational health of the banks. It is based on internationally adopted CAMEL model (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity), modified as CAMELS (S for Systems & Control) to suit the needs of Indian banking system.

2. A supervisory rating model based on CAMELS concept (CALCS for foreign banks), combining both qualitative and quantitative elements to summarize the performance of individual banks and also to assess the aggregate strength and soundness of the banking system.

3. An Off-site Monitoring and Surveillance (OSMOS) system, has been set up in 1995 with the primary objective of analyzing the financial position of the banks in between on-site inspections. The returns received from the banks cover a wide rage of data pertaining to assets, liabilities and off-balance sheet exposures, exposure to sensitive sectors, exposure of banks to interest rate and liquidity risks (both in domestic and foreign currencies), operations of subsidiaries etc . This helps the policy makers to refine their regulatory as well as monetary policy stance so as to achieve a fine balance between growth and financial stability.

4. Macro-prudential indicators (MPIs) are being compiled since March 2000, as a part of the Reserve Bank of India's initiatives in adopting best international practices for monitoring the stability of the financial system in India. The MPIs comprise both aggregated micro-prudential indicators (AMPIs) of the health of individual financial institutions and macro-economic indicators (MEIs) associated with financial system soundness.

5. A Risk Based Supervision (RBS) approach to inspection, envisages the monitoring of banks by allocating supervisory resources and focusing supervisory attention according to the risk profile of each institution. The process also involves the continuous monitoring and evaluation of the appropriateness of the risk management systems and control environment of the supervised institution in relation to its business strategy and exposures, with a view to assessing its riskiness.

6. A system of Prompt Corrective Action (PCA), based on a pre-determined rule-based structured early intervention is in place to enhance the existing supervisory framework. Under the PCA, certain structured actions will be initiated by the RBI in respect of banks which hit certain defined trigger points in terms of three parameters i.e. Capital funds to Risk Weighted Assets Ratio (CRAR), Net Non Performing Assets (NPAs) and Return on Assets (RoA).

7. Banks are being advised from time to time about the major fraud prone areas and the safeguards necessary for prevention of frauds, in order to prevent frauds in the banking sector. In June 2004 a Fraud Monitoring Cell was set up in the department to (i) review systems and controls in financial sector (ii) discern the emerging trends in frauds and circulate them to banks through electronic media (iii) examine international best practices so as to synergize them with the local requirements wherever necessary (iv) act as a nodal agency for interaction with various external agencies connected with prevention and investigation of frauds such as CVC, CBI etc (v) act as a central repository of information on frauds in financial sector and act as a think tank for fraud prevention.

8. With a view to enable supervisory assessment of risks and adherence to certain prudential regulations on group basis, guidelines on consolidated accounting and supervision have been issued to banks for compliance commencing from the year ended March 31, 2003. Banks were advised to prepare and submit consolidated prudential reports (CPR) in this regard and these reports are being reviewed by RBI on a half-yearly basis.

9. A Working Group on Financial Conglomerates constituted with one member each from the financial regulators - RBI, SEBI and IRDA had suggested certain criteria for identifying financial conglomerates, a monitoring system for capturing intra-group transactions and exposures amongst such conglomerates and a mechanism for inter-regulatory exchange of information in respect of conglomerates. The data/ information received from the 22 conglomerates identified by the Group is analysed by the respective regulators.

10. In view of the added emphasis on the role of market discipline under Basel II and with a view to enhancing transparency, banks have been advised that all cases of penalty imposed by the Reserve Bank of India as also strictures/directions on specific matters including those arising out of inspection would be placed in the public domain.

11. The supervisory strategy of the Department of Banking Supervision also includes :-

  • Strengthening the internal controls of banks based on the recommendations of the Jilani Committee and the implementation of Risk based Internal Audit (RBIA)

  • Increasing use of Statutory Auditors for verification and certification of certain aspects like adherence by banks to statutory liquidity requirements, prudential norms relating to income recognition, classification of assets and provisioning, authentication of bank's assessment of capital adequacy ratio and other ratios to be disclosed in the Notes on Accounts, comments on certain aspects of bank's functioning in the form of Long Form Audit Reports (LFAR) etc.

  • A system of concurrent audit of business transactions of banks intended to cover at least 50 percent of the business of the bank, besides 100% audit of risk sensitive portfolios such as forex, investments etc is in place.

  • A system of quarterly meetings between senior officials of RBI and CEOs/CMDs of banks revolving around the major concerns as revealed in the latest inspection findings, the progress made therein etc has been put in place since the year 2000. Banks' strategic plans on general improvement in their financial strength, steps taken to implement such plans and results achieved therein are also discussed. These meetings provide a forum for bankers to raise issues relating to policy matters that the bankers feel need clarification.

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Department of Non-Banking Supervision (DNBS)

Mission

  • Developing NBFCs sector as an integrated and healthy part of the Financial System; and thereby
  • Affording indirect protection to the interests of their depositors

Regulatory and Supervisory Framework

The RBI Act as amended in January 1997 provides for, among other things,

  • Entry norms for Non-Banking Financial Companies (NBFCs) and prohibition of deposit acceptance by unincorporated bodies with some exceptions
  • Powers of the Bank to issue asset side regulations
  • Compulsory registration, maintenance of liquid assets and reserve fund
  • Directions on acceptance of deposits and prudential regulation
  • Comprehensive regulation of deposit taking NBFCs
  • Punitive action like cancellation of Certificate of Registration, prohibition from acceptance of deposits and alienation of assets, filing criminal complaints and winding up petitions in extreme cases, appointment of RBI observers in certain cases

Under this basic legal framework, the RBI has evolved a supervisory framework for NBFCs comprising (a) on-site inspection (CAMELS pattern) (b) off-site monitoring through returns (c) market intelligence, (d) auditors' exception reports.

Developmental Activities

  • Co-ordination with State Governments for State Legislations to curb unauthorised and fraudulent activities in this sector
  • Publicity for depositors' education and awareness, workshops / seminars of trade and industry organizations, depositors' associations
  • Informal Advisory Group as an aid to decision making
  • Promotion of Self-Regulatory Organization (SRO) of NBFCs
  • Training programmes for personnel of NBFCs, State Governments and Police Officials

Current Focus

  • New legislation for NBFCs to make unauthorised deposit taking activity a cognisable offence
  • Further the cause of public awareness through education campaigns and workshops/seminars for various types of public, including auditors of NBFCs
  • Put in place an asset liability and risk management system for NBFCs
  • Enhance disclosure norms and new formats of financial statements
  • Web enabled filing of returns


Organisational Structure

  • created in July 1997 and 16 Regional Offices opened till date
  • The Regional Offices and Central Office integrated with Wide Area Network (WAN) providing for data exchange and video conferencing
  • Regulatory and supervisory functions integrated for quick synergistic action

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Department of Banking Operations and Development

Functions

The Department is entrusted with the responsibility of regulation of commercial banks under the provisions contained in Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 and other related statutes and development of banking policies. This includes the monitoring of banks maintaining the prescribed cash and statutory liquidity reserves, appointment of chief executive officers and certain other operational matters as provided in the statute.

The Department works towards promoting and fostering a sound and competitive banking system by laying down prudential regulations relating to capital adequacy, income recognition, asset classification, provisioning for loan and other losses, investment valuation, accounting and disclosure standards, asset-liability management and risk management systems.

The other important activities of the Department include licensing of new banks, expansion of foreign and domestic banks, approval for setting up of subsidiaries and undertaking new activities by commercial banks and follow-up for rehabilitation of weak banks.

Current Foscus

  • Corporate Governance
  • Discussion paper on Exposure Norms
  • Asset Reconstruction Company
  • Corporate debt restructuring
  • Amendment of Banking Regulation Act
  • Setting up international accounting standards for banks
  • Credit Information Bureau
  • New Capital Adequacy Framework
  • Restructuring of weak banks
  • Improving prudential norms in keeping with international best practices
  • Legal reforms
  • Entry of banks into insurance
  • Regulation for e-banking
  • Licensing norm for entry of new banks in private sector
  • Reduction of government equity in nationalised banks
  • Improvement in bank transparency

Department of Information Technology

Functions

The Department of Information Technology (DIT) attends to:

  1. Computerisation in RBI (Regional Offices and Central Office Departments)
  2. Design and development of projects for use of banks and financial institutions and
  3. Monitoring progress of technology in banks

Current Focus

(i) Computerisation in RBI

DIT has been concentrating on computerisation of all activities undertaken in the Banking Department (Deposit Accounts Department, Public Accounts Department, Public Debt Office, Establishment Section and Central Accounts Section) and the Issue Department (Currency Chest Management and Accounting) which have impact on the balance sheet of the Reserve Bank. These departments also extend customer service. Computerisation of these departments, therefore, aim at ensuring better house keeping and efficient customer service. The tasks undertaken involve acquisition of hardware, development of software, its audit and upgradation. This task has been completed more or less and the process of further upgradation is on hand.

Support is extended to specialised departments in preparation of systems requirement specifications (SRS) and request for proposal (RFP) and developing or outsourcing the software for successful implementation of projects.

(ii) Design and Development of Projects for use of Banks and Financial Institutions

The projects developed so far and those listed for development are in the process of development which directly help systemic efficiency are as under :

Projects already developed

  • MICR cheque processing at four metros (Mumbai, New Delhi, Calcutta and Chennai) with image technology (July - October 1999)
  • Electronic Clearing Services (debit and credit) at 15 centres where RBI has its offices and 30 centres managed by SBI.
  • Electronic Funds Transfer at four metros and its extension to Hyderabad, Ahmedabad and Bangalore

Projects in the Process of Development

  • Indian Financial Network (INFINET)
  • Securities Settlement System (SSS) and Negotiated Dealing System (NDS)
  • Centralised Funds Management System (CFMS)
  • Structured Financial Messaging Solution (SFMS)
  • Real Time Gross Settlement (RTGS)

(iii) Monitoring

  • Progress in computerisation and networking to achieve targets set by the Central Vigilance Commission of coverage of 70% of their business by computerisation.
  • Setting up MICR Cheque Processing centers at non-metros
  • Adoption of standardisation in the area of hardware, operating system and communication platforms
  • Development of generic architecture (tree or star topology for domestic and cross border connectivity)

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Legal Department

Functions

The main function of the department is to tender legal advice on various matters referred by the operational departments/offices/associates of the Reserve Bank. These references mainly involve interpretation of the Constitution of India, provisions of the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, the Foreign Exchange Management Act, 1999, Government Securities Act, 2006 and various other central and state statutes. The department is also required to interpret the rules and regulations governing the Reserve Bank's staff and to deal with legal issues relating to industrial relations.

The department is associated with legislative drafting on matters related to banking and finance including drafting of subordinate legislation such as rules, regulations and statutory notifications.

In litigation by or against the Reserve Bank, the department prepares instructions to the counsel appearing in courts on behalf of the Reserve Bank and draft pleadings and functions as liaison between the Reserve Bank and its counsel/solicitors.

The department attends to the work relating to investigation of title of land through the Bank's solicitors/advocates with regard to acquisition of premises for the Bank and handles documentation relating to construction of buildings, etc.

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Monetary Policy Department

Functions

Mandate and Objectives

  • The Reserve Bank of India Act, 1934 sets out broadly the objectives of monetary policy :
  • "to regulate the issue of Bank notes and the 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".

    • Although there is no explicit mandate for price stability, the objectives of monetary policy in India have evolved as maintaining price stability and ensuring adequate flow of credit to the productive sectors of the economy to support economic growth. The relative emphasis placed on price stability and economic growth is modulated according to the circumstances prevailing at a particular point in time and is spelt out, from time to time, in the policy statements of the Reserve Bank. In the recent period, considerations of financial stability have assumed an added importance in view of increasing openness of the Indian economy.
    • The Reserve Bank has multiple instruments at its command for implementation of monetary policy such as repo and reverse repo rates; cash reserve ratio (CRR); open market operations, including LAF and market stabilisation scheme (MSS); special market operations; sector-specific liquidity facilities; and prudential tools.

Main Duties

  • Monetary Policy Department is entrusted with the responsibility of designing, formulating and implementing monetary policy of the Reserve Bank. Accordingly, the Department prepares Governor's Statements on Monetary Policy
  • The Policy Statements are currently brought out four times in a year. The Annual Policy (April) and its Second Quarter Review (October) consist of two parts: Part A: Monetary Policy and Part B: Developmental and Regulatory Policies. The First Quarter Review (July) and the Third Quarter Review (January) of Monetary Policy comprise only Part A. .
  • Monetary policy formulation is carried out by the Reserve Bank in consultation with various stakeholders such as banks, market participants and industry and trade associations.
  • In pursuance of the objective of further strengthening the consultative process of monetary policy formulation, a Technical Advisory Committee (TAC) on Monetary Policy has been set up, which meets ahead of the Annual Policy and the quarterly reviews, to review macroeconomic and monetary developments and advise the Reserve Bank on the stance of monetary policy.

Main Activities

  • Preparation of Reserve Bank's Annual Policy Statement and its Reviews in each quarter.
  • Conduct of Technical Advisory Committee meetings on Monetary Policy in each quarter before the announcement of Policy Statement/Reviews or at any other time as and when needed.
  • Conduct of pre-policy consultation meetings with the bankers, market participants, trade bodies, self-regulatory organisations and economists and journalists to facilitate the policy formulation process.
  • Periodical meetings with banks on resource management.
  • Conduct of Governor’s meetings with banks to announce Policy.
  • Policy regarding monetary policy framework and instruments - Design and Operations.
  • Monetary projections and preparation of monetary budget.
  • Monitoring and review of developments in macroeconomic conditions, prices and inflation, key monetary and banking aggregates, financial markets including interest rates.
  • Monitoring and review of maintenance of CRR and SLR by scheduled commercial banks.
  • Monitoring of relevant global developments, including monetary policy developments in select major economies.
  • Sanctioning and monitoring of refinance limits/utilisation in respect of scheduled commercial banks.
  • Issue of Master Circular on Export Credit Refinance Facility every year in July.
  • Preparation of a Memorandum for the Central Board of Directors twice a year reviewing the monetary and credit developments and policy measures taken during the period.

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Internal Debt Management Department

Functions

The main activity of the Internal Debt Management Department is to manage the public debt of Government of India/ State Governments. The Department also regulates and supervises the Primary Dealers System and has the responsibility for development of Government Securities Market. These activities involve:

(i) Floatation of Central/State Government Loans - preparation of calendar for issuances of Government of India dated securities and Treasury Bills, introduction of new instruments for Government?s market borrowings;

(ii) Fixing of limits on Ways and Means advances (WMA) for both Central and State Governments and monitoring the use of these limits on a daily basis;

(iii) Authorisation, regulation and supervision of the Primary Dealer system;

(iv) Market development activities like the introduction of new instruments, development of trading platform, clearing and settlement systems and widening of investor base;

(v) Facilitating State Governments' investment of their surplus cash balances in Treasury Bills and dated securities under various funds.

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Department of External Investments and Operations

Functions

The main function of this department is management and investment of foreign exchange reserves of the Reserve Bank of India:

  • Management and investment of the foreign currency and gold assets of the Reserve Bank of India.
  • Handling external transactions on behalf of Government of India (GOI) including transactions relating to IMF.
  • All matters incidental to India's membership of the Asian Clearing Union.
  • Other matters relating to gold policy, membership of the Bank for International Settlements (BIS) and matters incidental to international cooperation/arrangements

Reserves Management

The principal objectives behind the Reserve Bank's approach to reserves management continue to be safety and liquidity. Within these parameters, return optimisation dictates operational strategies. The legal framework for reserves management is provided in the Reserve Bank of India Act 1934. Specifically, Sections 17 (12), 17(12A), 17(13) and 33(1) of the RBI Act 1934 lay down the scope of investment of foreign exchange reserves by RBI. Broadly, the following investment categories are permitted under the RBI Act:

  • Deposits with other central banks and Bank for International Settlements
  • Deposits with foreign commercial banks
  • Investments in securities issued by the Government of any other country or by any institution incorporated outside India provided such securities are guaranteed by the Government of the country concerned. The maturity period of such investments should not exceed more than ten years from the date of such investment.
  • Other instruments/institutions as approved by Central Board of RBI.
Further, in order to ensure safety and liquidity of our reserves, RBI has also framed internal guidelines/procedures to manage the various risks like credit risk, liquidity risk, operational risks and market risk incidental to the reserves management.

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Department of Government and Bank Accounts

Functions

The Department of Government and Bank Accounts(DGBA) is responsible for discharging certain core traditional central banking functions, viz., acting as bankers to the banks and governments and administering public debt of both, central and state governments. It is also responsible for maintenance of the Reserve Bank's internal accounts and compilation of its weekly statement of affairs and annual balance sheets.

The general banking business including management of public debt of the central and state governments has devolved on the Reserve Bank by virtue of the provisions of Reserve Bank of India Act, 1934 and agreements with the respective governments. These functions are carried out on a day-to-day basis through the Reserve Bank's Public Accounts Departments, Deposit Accounts Department and Public Debt Offices as also through the agency bank branches. The principal deposit accounts of central and state governments are maintained at central accounts section of the Reserve Bank at Nagpur which also attends to granting of ways and means advances to central and state governments.

The Department also monitors disposal of the complaints received from the members of public regarding unsatisfactory services rendered by various departments of the Reserve Bank.

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Department of Economic & Policy Research

Functions

The Reserve Bank of India has a rich tradition of economic research. Its Department of Economic & Policy Research (DEPR) :

  • Studies and analyses the basic issues and problems (both domestic and international) affecting the Indian economy;
  • Serves as a primary source of data and information relating to aspects of the Indian economy, such as,
  • Prepares monetary and credit aggregates, balance of payments and external debt statistics, internal debt and government finance statistics, and flow-of-funds and financial saving.
  • Renders advice/assistance and offer its views in the realm of economic policy formulation and in shaping monetary, banking and financial policies; and
  • Prepares the Bank's economic publications.

In terms of quality and timeliness of data dissemination, the Bank conforms to the international standards. These data are disseminated regularly through various publications and the Bank's website.

The Department brings out six major publications - annual (the Annual Report, the Report on Currency and Finance, the Report on Trend and Progress in Banking and Finances of State Governments), monthly (RBI Bulletin), Weekly (Statistical Supplement) and a tri-annual research journal (RBI Occasional Papers). In addition, research studies are published in a series of Staff Studies. The analytical rigour and coverage of these publications have established them as the reference documents among the market participants, analysts, academics and international community.

Apart from extend its research and analytical support to the Bank's policy formulations the Department coordinates the IMF country consultations and the discussions with the rating agencies, provides policy support to the Government as well as background material for the Economic Survey, Finance Minister's Budget Speech and Parliament Questions. Besides its own internal research, the Department promotes research and obtains the views of outside experts on issues of importance to the economy through seminars, collaborative studies and endowment schemes.

The Department administers Research Chairs and Fellowships set up by the Reserve Bank in 17 universities and research institutions, special financial grants for supporting specific research projects and publications. The Department organises two annual lectures C.D. Deshmukh and L.K. Jha Memorial Lectures which are delivered by distinguished personalities in the areas of macroeconomics, banking and finance.

The Department also co-ordinates the work relating to SAARC FINANCE, a network of SAARC central bank Governors and Finance Secretaries. The Department maintains a well-endowed library at the central office.

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Department of Statistics and Information Management

Functions

The Department of Statistics was created in 1959, out of the erstwhile Department of Research and Statistics. The Department was restructured in December 1981. It was designated as the Department of Statistics and Information Management. The Department is headed by a Principal Adviser. The Department has its central office at Mumbai and regional offices at New Delhi, Chennai and Calcutta.

The following are the core functions of the Department:

  • Collection, processing and dissemination of data on banking, corporate and external sectors.
  • Planning, designing and organising sample surveys of interest to the Reserve Bank.
  • Undertaking studies in the areas of interest and relevance to the Reserve Bank.
  • Generation of forecasts of important macro-economic indicators. o Providing technical support to other departments of the Reserve Bank in statistical analysis in specific areas.
  • Development of methodology for the measurement and estimation of variables and improvement of the database of various sectors of the economy through participation in committees, working groups, etc.

Current Focus

  • Coordinating the work relating to and building a Central Data Base Management System (CDBMS) for the Reserve Bank, based on data warehousing approach. The system would bring about a radical change in the information management and delivery system by providing the decision-makers, analysts and researchers, online and real-time access to a central repository of clean and consistent historical and current data. The system would provide extensive data exploitation capabilities to the end-users and will become an integral part of the decision support infrastructure of the Reserve Bank.
  • Maintaining a large database relating to the banking sector.
  • Bringing out two annual publications namely, (i) Basic Statistical Returns (BSR) and (ii) Statistical Tables Relating to Banks in India, which are based on branch level detailed data on credit and deposits and annual accounts of banks, respectively.
  • Maintaining a comprehensive profile of all the bank offices in India, which includes the break-up of employees by different categories in such offices.
  • Maintaining the primary database of all external sector transactions mediated through the banking sector and tabulations generated from this database form inputs for compilation of balance of payments (BoP) statistics by the Department of Economic Analysis and Policy.
  • Conducting periodic surveys to fill data gaps on external sector, such as, foreign investment survey and survey of unclassified receipts.
  • Preparing validated data on private corporate sector of the economy, which are widely used for policy and research purposes. The Department publishes, these regularly in the Reserve Bank of India Bulletin.
  • Conducting the 'Industrial Outlook Survey' at quarterly intervals, since January 1998, with a view to collecting information on the performance of the private corporate sector engaged in manufacturing activity, and its prospects in the subsequent quarter for internal purposes of validating information gathered from outside sources.
  • Undertaking analytical studies making use of various statistical, econometric and operational research techniques. Among the important ones, the Department has been preparing quarterly reviews on inflation, forecasts on major variables such as national income, agricultural and industrial production, monetary and banking aggregates.

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Department of Payment and Settlement Systems

Functions

The Department of Payment and Settlement Systems (DPSS) started operating as a separate department from March 2005.

The payment and settlement systems in India are regulated by the Payment and Settlement Systems Act, 2007 (PSS Act) which was legislated in December 2007. The PSS Act as well as the Payment and Settlement System Regulations, 2008 framed thereunder came into effect from August 12, 2008. In terms of the PSS Act, no person other than the Reserve Bank of India (RBI) can commence or operate a payment system in India unless authorised by RBI. Driving its powers under the PSS Act, the Department is responsible for authorization of various payment system operators along with regulation and oversight on the Payment and Settlement Systems which encompass the cheque based clearing systems, Electronic Clearing Service (ECS) suite, National Electronic Funds Transfer (NEFT) System, Real Time Gross Settlement Systems (RTGS), other electronic products like Cards (Debit/Credit/Prepaid), Mobile banking, Internet Banking etc, the inter-institutional Government Securities clearing and the inter-bank foreign exchange clearing.

The Department also provides secretarial support to the Board for regulation and supervision of Payment and Settlement Systems (BPSS), which happens to be a Committee of the Central Board.

The functions of the Department include the following:

  • Formulation of Payment and Settlement Systems policies.
  • Regulation of Payment and Settlement Systems.
  • Supervision of Payment and Settlement Systems.
  • Implementation of the Core Principles relating to payment systems (as enunciated by the Bank for International Settlements).
  • Laying down standards for payment and settlement systems.
  • Designing, developing and integrating Systemically Important Payment System (SIPS) projects and / or facilitating such implementation.
  • Monitoring the operations of payment and settlement systems.

The department has four Regional Offices at the four Metros.

Board for regulation and supervision of Payment and Settlement Systems (BPSS)

The BPSS meets once in a quarter and prescribes policies relating to the regulation and supervision of all types of payment and settlement systems. The BPSS is also expected to set standards for existing and future systems, authorise the payment and settlement systems, determine criteria for membership to these systems, including continuation, termination and rejection of membership.

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Secretary's Department

  • Secretarial work connected with the meetings of the Central Board and its Committee as also the Administrators of the Reserve Bank of India Employees' Provident Fund and Reserve Bank of India Employees' Co-operative Guarantee Fund.
  • Secretarial work relating to Top Management Group.
  • Secretarial work relating to the Deputy Governors' Committee Meetings
  • Conveying the decisions taken in all the meetings mentioned above to the concerned Central Office departments and also all the Regional Offices in case of Senior Management meeting and monitoring the implementation thereof.
  • Work relating to joining / retirement / relinquishing charges by Governor and Deputy Governor.
  • Work relating to terms and conditions of service of Governor and Deputy Governors.
  • Work relating to constitution of Central Board / Local Board.
  • Providing administrative support to the Top Management, including staff support and various non-establishment payments.
  • Work relating to administration and non-establishment payments pertaining to Secretary's Department, IDMD and PRD.
  • Providing hardware (computers, printers, fax machines, cell phone) and software support to Secretary's Department, IDMD, PRD, Top Management and their secretarial staff.
  • Providing administrative Secretarial Support including hardware / software to various Boards viz. Advisory Board on Banking, Commercial & Financial Fraud (ABBCFF).
  • Protocol Services to visiting foreign dignitaries, Parliamentary delegations, Bank's Top Executives, Central Board Directors etc.
  • Work relating to reservation of Conference Rooms, Auditorium, Executive Lounge and the VVIP Guest House

External Relations and Customer Service

Publications

  • Annual: Annual Report, Report on Trends and Progress of Banking in India, Report on Currency and Finance, Report on State Finances
  • Quarterly: Occasional Papers (based on research), Banking Statistics
  • Monthly: RBI Bulletin, Credit Information Review
  • Weekly: Statistical Supplement

Press Releases: issued every day to convey policy decisions

Website: updated daily with all publications, press releases, speeches of Governor/Deputy Governors

Address: www.rbi.org.in


Customer Service

Helpdesks: in all departments and all offices to give general guidance to public

 

 
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