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 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.
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:
o Official Directors
Full-time : Governor and not
more than four Deputy
Governors
o 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
SECRETARY''S DEPARTMENT
Names and addresses of the Directors of the Central Board of
the Reserve Bank of India
1. Dr. D. Subbarao @ 1 1 . Shri Azim Premji
Governor Chairman,
Reserve Bank of India WIPRO Limited
Central Office Doddakannelli,
Mumbai 400 001. Sarjapur Road,
Bangalore – 560033
2. Smt. Shyamala @ 1 2 . Shri Kumar Mangalam
Gopinath Birla
Deputy Governor Chairman,
Reserve Bank of Aditya Birla Group of
India Companies
Central Office Aditya Birla Centre,
Mumbai 400 001. S. K. Ahire Marg, Worli
Mumbai – 400 030
3. Smt. Usha Thorat @ 1 3 . Smt. Shashi
Deputy Governor Rajagopalan
Reserve Bank of Plot No. 10, Saket
India Phase 2
Central Office Kapra, ECIL Post
Mumbai 400 001. Hyderabad – 500 062
4. Dr. K.C. Chakrabarty @ 1 4 . Shri Suresh Neotia
Deputy Governor B-32, Greater Kailash
Reserve Bank of Part - I
India New Delhi – 110 048
Central Office
Mumbai 400 001.
5. Dr. Subir Gokarn @ 1 5 . Dr. A. Vaidyanathan
Deputy Governor B-1, Sonali Apartment,
Reserve Bank of Old No. 11
India Beach Road,
Central Office Kalakshetra Colony
Mumbai 400 001. Chennai – 600 090
*6. Shri Y.H. Malegam @ 1 6 . Prof. Man Mohan
Chartered Sharma
Accountant 2/3 Jaswant Baug
C/o S. B. Billimoria & (Runwal Park),
Company Behind Akbarallys,
Meher Chambers (2nd Chembur Naka
floor) Mumbai – 400 071
R. Kamani Road,
Ballard Estate
Mumbai 400 001
*7. Prof. Suresh D. @ 1 7 . Shri Sanjay Labroo
Tendulkar Managing Director &
Economist, CEO
AD-86-C, Asahi India Glass Ltd.
Shalimar Bagh, Global Business Park
New Delhi – 110 088 Tower - B, 5th Floor'
Mehrauli - Gurgaon
Road
Gurgaon - 122002
(Haryana)
*8. Prof. U. R. Rao # 18. Shri Ashok Chawla
Chairman, Physical Finance Secretary
Research Laboratory Government of India
Department of Space, Ministry of Finance
Government of India New Delhi 110001
Antariksh Bhavan, New
BEL Road
Bangalore – 560 094
*9. Shri Lakshmi Chand
IAS (Retd.),
C-12, Sector 14
NOIDA, Gautham Budh
Nagar
Uttar Pradesh
@10. Shri H. P. Ranina
Advocate, Supreme
Court of India,
506, Raheja Centre,
214 Backbay
Reclamation,
Free Press Journal
Road,
Mumbai - 400 023
* 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.
Dated June 30, 2010
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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 1. Prof. U. R. Rao
Chartered Accountant Chairman,
c/o S.B.Billimoria & Physical Research
Company Laboratory,
Meher Chambers (2nd floor) Department of Space,
R. Kamani Road, Ballard Antariksh Bhawan, New BEL
Estate Road
Mumbai 400 001 Bangalore – 560094
2 . Shri K. Venkatesan 2 . Shri Mitha Lal Mehta
113, F-Block Former Chief Secretary
Anna Nagar East Government of Rajasthan
Chennai 600 040. 5, Keshav Nagar, Gopalpura
Road
Jaipur - 302 018
3 . Shri Dattaraj V. Salgaocar 3. Dr. Ram Nath
Managing Director Ex-Professor & Vice
V. M. Salgaocar & Bro. Ltd. Chancellor
Hira Bihar, Airport Road, CSA University of Agri. &
Chicalim Tech.
Vasco Da Gama, Goa - 403 Plot No. 710, 'A' Block, Avas
711 Vikas Colony
Hanspur, Naubasta,
Kanpur - 208 001
4 . Shri Jayantilal B. Patel 4 . Dr. Pritam Singh
Chairman Director, Management
Sahakari Khand Udyog Development Institute
Mandal Ltd. Mehrauli Road, Sukhrali
At & Post, Gandevi Sugar Gurgaon - 122 001
Factory
Taluka Gandevi, District
Navsari, Via Billimora
Gujarat PIN - 396 360
5 . Shri Kamal Kishore Gupta
Chartered Accountant
Kamal & Co.
1372, Kashmere Gate
Delhi - 110 006
Mumbai : Dated August 26,
2010
SOUTHERN AREA
EASTERN AREA
1 . Shri Suresh D. Tendulkar 1 . Shri Lakshmi Chand
Economist, Retd. IAS, C-12,
AD-86-C, Sector – 14, Noida,
Shalimar Bagh, U. P. 201301
New Delhi – 110 088
2 . Shri A. K. Saikia, Retd. IAS 2 . Shri C. P. Nair
H-8, Sector - 27 “Winter Mist” Seasons
Noida - 201 301 Apartments
Kuravankonam
Thiruvananthapuram- 695
003
3 . Shri Sovan Kanungo, Retd. 3 . Dr. M. Govinda Rao
IAS Director
17/404, East End National Institute of Public
Apartments Finance and Policy
Mayur Vihar I ( Extension ) 18/2, Satsang Vihar Marg
New Delhi -110096 Special Institutional Area
(Near JNU)
New Delhi 110 067
4 . Smt. Devaki Jain,
C-II/41, 2nd Floor
Safdurjung Development
Area
New Delhi- 110016
Mumbai : Dated August 26,
2010
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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.
Objective
Primary objective of BFS is to undertake consolidated
supervision of the financial sector comprising
commercial banks, financial institutions and non-
banking finance companies.
Constitution
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.
Functions
Some of the initiatives taken by BFS include:
i. restructuring of the system of bank inspections
ii. introduction of off-site surveillance,
iii. strengthening of the role of statutory auditors
and
iv. 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.
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Regulation and Supervision of Payment systems
The Payment and Settlement Systems Act 2007(PSS
Act 2007) empowers the Reserve Bank of India to
regulate and supervise the payment systems in the
country. The Act states that these powers will be
exercised by the Board for Regulation and
Supervision of Payment and Settlement Systems
(BPSS) constituted by it for the purpose. The BPSS
will be a Committee of the Reserve Bank of India's
Central Board.
Objective and Functions
The functions of the BPSS will be to lay down
policies for regulation and supervision of the payment
systems in the country, laying down standards for
existing and future payment systems, authorisation of
payment systems, determination of the criteria for
membership of payment systems including
continuation, termination and rejection of
membership, overseeing the administration of
regulations and guidelines framed under the PSS Act
2007, issuing directions to payment system
operators, calling for returns/information, etc.
Constitution
The BPSS consists of the Governor of the RBI as
Chairperson, Deputy Governors as Members out of
whom the Deputy Governor who is in charge of the
Department of Payment and Settlement Systems will
be the Vice Chairperson and three Directors of
Reserve Bank of India Central Board will be
members.
Two Executive Directors of Reserve Bank of India and
its principal Legal Adviser will be permanent invitees
to the meetings. Persons with experience in the field
of payment and settlement systems may be invited to
the meetings of the BPSS either as permanent or ad-
hoc invitees.
BPSS is assisted by the Department of Payment and
Settlement Systems.
Current Focus
1. Authorisation/ refusal of authorisation of/to
payment systems.
2. To lay down policies for encouraging the
movement from paper-based payment systems
to electronic modes of payments.
3. Setting up of the regulatory framework of
newer payment methods.
4. Enhancement of customer convenience in
payment systems.
5. Improving security and efficiency in paper-
based and electronic modes of payment.
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Legal Framework
Umbrella Acts
Reserve Bank of India Act, 1934: g o v e r n s t h e
Reserve Bank functions
Banking Regulation Act, 1949: governs the
financial sector
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
Payment and Settlement Systems Act 2007:
Regulation and supervision of the payment
systems.
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.
Regulator and supervisor of the payment
systems
o Authorises setting up of payment
systems
o Lays down standards for operation of
the payment system
o Issues direction, calls for
returns/information from payment
system operators.
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
Has 4 regional offices ,15 branches and 5 sub-
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 which are available in Other
Links.
Subsidiaries
Fully owned: National Housing Bank(NHB), Deposit
Insurance and Credit Guarantee Corporation of
India(DICGC), Bharatiya Reserve Bank Note Mudran
Private Limited(BRBNMPL)
Majority stake: National Bank for Agriculture and
Rural Development(NABARD).
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