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Organisation and Functions


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 was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.

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


The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:

" 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."


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 two government Officials
      • 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


Dr. Raghuram Rajan


Prof. Dipankar Gupta


Shri H.R. Khan
Deputy Governor


Shri G.M. Rao


Dr. Urjit R. Patel
Deputy Governor


Ms. Ela Bhatt


Shri R. Gandhi
Deputy Governor


Dr. Indira Rajaraman


Shri S S Mundra
Deputy Governor


Shri Y.C. Deveshwar


Dr. Anil Kakodkar


Prof Damodar Acharya


Shri Kiran Karnik


Shri Rajiv Mehrishi


Dr Nachiket M. Mor


Dr. Hasmukh Adhia


Shri Y.H. Malegam

C/o CGM and Secretary
Secretary’s Department
Reserve Bank of India
16 th floor, Central Office Building
Shahid Bhagat Singh Marg
Mumbai – 400 001

* Directors nominated under Sect 8 (1) (b) of the RBI Act, 1934.
@ Directors nominated under Sect 8 (1) (c) of the RBI Act, 1934.
# Directors nominated under Sect 8 (1) (d) of the RBI Act, 1934 (as amended).
Dated : March 16, 2014


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



Shri Kiran S. Karnik

C/o Secretary to the Western Area Local Board
The Regional Director
Reserve Bank of India
Main Building Shahid Bhagat Singh Marg
Mumbai – 400 001


Dr Nachiket M. Mor Address:
C/o Secretary to the Eastern Area Local Board
The Regional Director
Reserve Bank of India
15, Netaji  Subhas  Road
Kolkata – 700 001


Ms. Anila Kumari


Shri Sharif Uz-zaman Laskar

Mumbai : Dated Feb 13, 2014

Northern Area



Shri Anil Kakodkar

C/o  Secretary to the Northern Area Local Board
The Regional Director
Reserve Bank of India
6, Sansad Marg
New Delhi – 110 001


Shri K. Selvaraj

C/o Secretary to the Southern Area Local Board
The Regional Director
Reserve Bank of India
Fort Glacis 16, Rajaji Salai
Chennai – 600 001


Shri A. Naveen Bhandary


Shri Kiran Pandurang



Mumbai : Dated Nov 28, 2014


Financial Supervision

The Reserve Bank of India performs this function under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India.


Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.


The Board is constituted by co-opting four Directors from the Central Board as members for a term of two years and is chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members. One Deputy Governor, usually, the Deputy Governor in charge of banking regulation and supervision, is nominated as the Vice-Chairman of the Board.

BFS meetings

The Board is required to meet normally once every month. It considers inspection reports and other supervisory issues placed before it by the supervisory departments.

BFS through the Audit Sub-Committee also aims at upgrading the quality of the statutory audit and internal audit functions in banks and financial institutions. The audit sub-committee includes Deputy Governor as the chairman and two Directors of the Central Board as members.

The BFS oversees the functioning of Department of Banking Supervision (DBS), Department of Non-Banking Supervision (DNBS) and Financial Institutions Division (FID) and gives directions on the regulatory and supervisory issues.


Some of the initiatives taken by BFS include:

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

The Audit Sub-committee of BFS has reviewed the current system of concurrent audit, norms of empanelment and appointment of statutory auditors, the quality and coverage of statutory audit reports, and the important issue 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
  • divergence in assessments of non-performing assets and
  • supervisory rating model for banks.


Legal Framework

Umbrella Acts

Acts governing specific functions

Acts governing Banking Operations

  • Companies Act, 1956 and 2013: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


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.



Training Establishments

Has five training establishments

  • Two, namely, College of Agricultural Banking 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 which are available in Other Links.


Fully owned: Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)

Majority stake:

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