Reserve Bank of India

Members

1. Official Directors(Full-time): Governor and not more than four Deputy Governors.
2. Non-Official Directors(Nominated by Government): Ten Directors from various fields and 2 Finance Ministry representatives.
3. Others: Four Directors - one each from four local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.

Appointment

The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

Term

Appointed/nominated for a period of four years.

Functions

General superintendence and direction of the Bank's affairs.

Members

 Five members

Appointment

Appointed by the Central Government.

Term

Four years

Functions

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

Fully owned

1. Deposit Insurance and Credit Guarantee Corporation of India(DICGC).(to set up printing presses at Mysore in Karnataka and Salboni in West Bengal.)
2. Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL).(in February 1995 to produce banknotes).
3. The National Housing Bank (NHB) was established in 1988 to promote private real estate acquisition.

The institution maintains banking accounts of all scheduled banks, too.

Majority stake

NABARD

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.

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.

Board for Financial Supervision (BFS)

To perform Financial Supervision.

Established

November 1994 as a committee of the Central Board of Directors of the RBI.

Objective

To undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.

Members

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

Functions

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.

BFS Meetings

Once in every month.

It considers inspection reports and other supervisory issues placed before it by the supervisory departments.

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.

Audit Sub-Committee