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Banking & Credit :: RESERVE BANK OF INDIA (RBI)
RESERVE BANK OF INDIA (RBI)
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:
"...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."
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
Functions : General superintendence and direction of the Bank's affairs
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.
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.
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:
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.
Acts governing specific functions
Acts governing Banking Operations
Acts governing Individual Institutions
Regulator and supervisor of the financial system
Manager of Foreign Exchange
Issuer of currency
OFFICE IN TAMILNADU
Regional Director : Shri B. Ghosh
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)
The Reserve Bank of India has recently divested its stake in State Bank of India to the Government of India.
The Reserve Bank of India has released to public a number of long time series data pertaining to financial sector, real sector, financial market, external sector, public finance and corporate finance in user friendly manner through dynamic web based application for the convenience of analysts, researchers and other users. This database consisting of 216 Static reports, 74 Simple query templates (subject wise), 53 Simple query templates (frequency wise) can be accessed from the home page of the RBI website (www.rbi.org.in) through the static headline “Database on Indian Economy (DBIE)” or directly using the website URL http://dbie.rbi.org.in. List of data series available on the site is progressively enlarged on a regular interval on the basis of feedback received and availability of relevant data series in the RBI’s data warehouse.
For further details Click here
Economic & Political Weekly, April 25, 2009 vol XLIV no 17.
Updated on July 3rd 2013
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