Reserve Bank of India (RBI) is the Central Bank of our country. It was established on the recommendations of Hilton Young Commission.
Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of Reserve Bank of India Act, 1934. It was nationalised in 1949; fully owned by Government of India.
Headquarters – Mumbai, Maharashtra.
Organisational Structure and Management of Reserve Bank of India –
As per RBI Act, the organisational structure of the RBI comprises of –
Central Board – Leading government body of the bank. It consists of 20 members which are as follows:
The Governor is the Chairman of the Central Board. In his absence, he nominates a Deputy Governor as a Chairman. The Deputy Governors and the Government’s Official nominee have no right to vote at the meetings of the Board.
*First Governor of RBI – Sir Osborne Smith and
First Indian Governor of RBI – Sir CD Deshmukh
The Central Board holds minimum 6 meetings every year. (At least one meeting every quarter)
The current business of Central Bank typically meets every week on Wednesdays.
Local Boards –
- RBI is divided into four regions – the Western, the Eastern, the Northern and the Southern areas. For each of these regions, there is a Local Board with headquarters in Bombay, Calcutta, New Delhi and Madras.
- It consists of 5 members appointed by Central Government for 4 years.
- In each Board, A chairman is elected amongst their members.
Boards of Financial Supervision –
- Regulates and supervises Commercial Banks, Non-Banking Finance companies, Development Finance institutions, Urban Cooperative Banks and primary dealers.
- RBI has 33 departments.
- Focuses on policy issues, functional areas and internal operations of the RBI.
Regional Offices and Sub-Offices –
- 19 regional offices and 9 sub-offices of RBI
RBI’s fully owned subsidiaries are:
- National Housing Bank (NHB)
- Deposit Insurance and Credit Guarantee Corporation (DICGC)
- Bhartiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
- Majority stake in National Bank of Agriculture and Rural Development (NABARD)
With this we will finish this topic here. We will discuss the Functions of RBI in next article.
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