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 Kolkata 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; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth."
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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.
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Appointed/nominated for a period of four years
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Constitution:
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Official Directors
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Full-time : Governor and not more than four Deputy Governors
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Non-Official Directors
See AlsoThe Reserve Bank of India (RBI): What It Is and How It WorksCash Reserve Ratio (CRR) - Current Rate and Impact on EconomyBank Reserves: Definition, Purpose, Types, and RequirementsReserve Bank of India-
Nominated by Government: ten Directors from various fields and two government officials
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Others: four Directors - one each from four local boards
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Functions : General superintendence and direction of the Bank's affairs
| Central Board of Director appointed/nominated under RBI Act, 1934 | ||
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| Section of RBI Act | Sr. No. | Name |
| 8 (1) (a) | 1. | Shri Shaktikanta Das Governor |
| 2. | Dr. M.D. Patra Deputy Governor | |
| 3. | Shri M. Rajeshwar Rao Deputy Governor | |
| 4. | Shri T. Rabi Sankar Deputy Governor | |
| 5. | Shri Swaminathan J Deputy Governor | |
| 8 (1) (b) | 6. | Ms. Revathy Iyer |
| 7. | Prof. Sachin Chaturvedi | |
| 8 (1) (c) | 8. | Shri Satish Kashinath Marathe |
| 9. | Shri Swaminathan Gurumurthy | |
| 10. | Shri Anand Gopal Mahindra | |
| 11. | Shri Venu Srinivasan | |
| 12. | Shri Pankaj Ramanbhai Patel | |
| 13. | Dr Ravindra H. Dholakia | |
| 8 (1) (d) | 14. | Shri Ajay Seth |
| 15. | Dr. Vivek Joshi | |
| Address: C/o CGM-in-Charge and Secretary Secretary’s Department Reserve Bank of India 16th floor, Central Office Building Shahid Bhagat Singh Marg Mumbai – 400 001 | ||
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- Profile of Central Board Directors
- Constituted for Western Area, Eastern Area, Northern Area and Southern Area.
- Consist of five members each.
- Members appointed by the Central Government.
- Member shall hold office 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 | EASTERN AREA | ||||
| Address: 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 | 1. | Prof. Sachin Chaturvedi | Address: C/o Secretary to the Eastern Area Local Board The Regional Director Reserve Bank of India 15, Netaji Subhas Road Kolkata – 700 001 | ||
Northern Area | SOUTHERN AREA | ||||
| 1. | Ms. Revathy Iyer | Address: C/o Secretary to the Northern Area Local Board The Regional Director Reserve Bank of India 6, Sansad Marg New Delhi – 110 001 | Address: C/o Secretary to the Southern Area Local Board The Regional Director Reserve Bank of India Fort Glacis 16, Rajaji Salai Chennai – 600 001 | ||
| *The four Local Boards are not functioning due to lack of quorum. A Standing Committee of Central Board is functioning in the areas where Local Boards are unable to function for want of quorum. Mumbai : Dated November 4, 2022 | |||||
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Sitting Fees and Halting Allowance of Board Directors/Members
| Sitting Fees and Halting Allowance paid to the Directors of the Central Board, Members of the Local Board and Directors attending CCB meetings | |||
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| Sr. No. | Type of the Meetings | Sitting Fees per meeting (in INR) | Halting allowance per diem(in INR) |
| 1. | Central Board | 60,000 | 3,750 |
| 2. | Local Board | 60,000 | 3,750 |
| 3. | Committee of the Central Board (CCB) | 30,000 | 3,750 |
| Note: In addition, the travel and stay expenses towards attending Board/Committee/ Sub-Committee meetings are also borne by the Reserve Bank of India. | |||
Board for Financial Supervision
The Board for Financial Supervision (BFS) was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India under the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994.
The BFS was set up to strengthen supervision and surveillance over the financial system and providing sharper focus to supervisory policy and skills.
The BFS exercises integrated supervision over commercial banks, financial institutions and non-banking financial intermediaries. The Department of Supervision assists and provides secretarial support to BFS.
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I. Acts administered by Reserve Bank of India
- Reserve Bank of India Act, 1934
- Public Debt Act, 1944/Government Securities Act, 2006
- Government Securities Regulations, 2007
- Banking Regulation Act, 1949
- Foreign Exchange Management Act, 1999
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Chapter II)
- Credit Information Companies (Regulation) Act, 2005
- Payment and Settlement Systems Act, 2007
- Payment and Settlement Systems Act, 2007 As Amended up to 2019
- Payment and Settlement Systems Regulations, 2008 As Amended up to 2022
- Factoring Regulation Act, 2011
II. Other relevant Acts
- Negotiable Instruments Act, 1881
- Bankers' Books Evidence Act, 1891
- State Bank of India Act, 1955
- Companies Act, 1956/ Companies Act, 2013
- Securities Contract (Regulation) Act, 1956
- State Bank of India (Subsidiary Banks) Act, 1959
- Deposit Insurance and Credit Guarantee Corporation Act, 1961
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- Regional Rural Banks Act, 1976
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
- National Bank for Agriculture and Rural Development Act, 1981
- National Housing Bank Act, 1987
- Recovery of Debts Due to Banks and Financial Institutions Act, 1993
- Competition Act, 2002
- Indian Coinage Act, 2011 : Governs currency and coins
- Banking Secrecy Act
- The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
- The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
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Monetary Authority:
- Formulates, implements and monitors the monetary policy.
- Objective: maintaining price stability while keeping in mind the objective of growth.
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, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India.
- 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.
Regulator and Supervisor of Payment and Settlement Systems:
- Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
- Objective: maintain public confidence in payment and settlement system
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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- The Reserve Bank of India has offices at 33 locations.
Has five training establishments
- Four, namely, RBI Academy, College of Agricultural Banking, Reserve Bank of India Staff College and College of Supervisors are part of the Reserve Bank.
- Other autonomous, such as, 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.
| Sl.No. | Institutes | Description |
| 1 | Centre for Advanced Financial Research and Learning (CAFRAL) | Fully funded by RBI |
| 2 | Indira Gandhi Institute of Development Research (IGIDR) | Fully funded by RBI |
| 3 | Indian Institute of Bank Management (IIBM) | RBI is a sponsor bank along with other banks and Financial Institutions. |
| 4 | National Institute of Bank Management (NIBM) | RBI is an ordinary member along with other banks and Financial Institutions. |
Fully owned: Deposit Insurance and Credit Guarantee Corporation of India (DICGC), Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), Reserve Bank Information Technology Private Limited (ReBIT), Indian Financial Technology and Allied Services (IFTAS), Reserve Bank Innovation Hub (RBIH).
