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Organisation and Functions

Establishment

Preamble

Central Board

Board for Financial Supervision

Board for Payment and Settlement Systems

Local Boards

Profile of Central Board Directors

Legal Framework

Main Functions

Departments

Offices

Training Establishments

Subsidiaries

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 two

government Officials

Others: four Directors - one each from four local boards Profile of Central Board Directors

Functions : General superintendence and direction of the Bank's affairs

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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.

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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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Legal Framework

Umbrella Acts

Reserve Bank of India Act, 1934: governs the 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: Provides for regulation and

supervision of payment systems in India"

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.

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 19 regional offices, most of them in state capitals and 9 Sub-offices.

Training Establishments

Has five training establishments

Two, namely, College of Agricultural Banking 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 for which are available in Other Links.

Subsidiaries

Fully owned: Deposit Insurance and Credit Guarantee Corporation of India(DICGC), Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)

Majority stake:

The Government of India has enacted the Right to Information Act, 2005 (http://www.persmin.nic.in) which has come into effect from October 12, 2005. The Right to

Information under this Act is meant to give to the citizens of India access to information under control of public authorities to promote transparency and accountability in these organisations. The Act, under Sections 8 and 9, provides for certain categories of information

to be exempt from disclosure. The Act also provides for appointment of a Chief Public Information Officer to deal with requests for information.

RBI’s Obligation under the Act

The Reserve Bank of India is a public authority as defined in the Right to Information Act, 2005. As such, the Reserve Bank of India is obliged to provide information to members of public.

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Designation of Transparency Officer under the Right to Information Act, 2005 in the Reserve Bank of India.

In pursuance of the Central Information Commission’s directive dated November 15,2010 issued to all Public Authorities under the powers vested in the Central Information Commission under Section 19 (8) (a) of The Right to Information Act,2005, Shri Sandip Ghose, Chief General Manager – in – Charge is designated as the Transparency Officer.

The details of the Transparency Officer are as under:

Shri Sandip Ghose Chief General Manager – in - Charge Department of Administration and Personnel Management

Reserve Bank of India Central Office Building (21st Floor) Shahid Bhagat Singh Marg

Reserve Bank of India, Central Office, Fort , Mumbai 400001 Telephone 22611954 Fax - 22658934.

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Section 4(1)(b) of the Right to Information Act, 2005

Section 4(1)(b) Information to be published under the Act

(i) The particulars of the organisation, functions and

duties

(ii) The powers and duties of its officers and employees

(iii) The procedure followed in the decision making process,

including channels of supervision and accountability

(iv) Norms set by the Bank for the discharge of its

functions

(v) Rules, regulations, instructions, manuals and records,

held by the Bank or under its control or used by its

employees for discharging its functions

(vi) Statement of Categories of Documents that are held by

the Reserve Bank or under its Control

(vii) Particulars of any arrangement that exists for

consultation with, or representation by, the members

of the public in relation to the formulation of its policy

or implementation thereof

(viii) List of Boards, Councils, Committees and other bodies

consisting of two or more persons constituted as its

part or for the purpose of its advice, and as to whether

meetings of those boards, councils, committees and

other bodies are open to the public, or the minutes of

such meetings are accessible for public

(ix) A directory of its officers and employees

(x) Monthly remuneration received by its officers and

employees, including the system of compensation as

provided in its regulations

(xi) The budget allocated to each of its agency, indicating

the particulars of all plans, proposed expenditures and

reports on disbursements made

(xii) Not applicable

(xiii) Particulars of recipients of concessions, permits or

authorisations granted

(xiv) Details in respect of the information, available to or

held by it, reduced in an electronic form

(xv) The particulars of facilities available to citizens for

obtaining information, including the working hours of a

library or reading room, if maintained for public use

(xvi) Names, designations and other particulars of Public

Information Officers

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Library Acess

The working hours of RBI library at the central office are 9.45 am to 5.45 pm. Though it mainly caters to the RBI staff, it is also open to academics, students and researchers.

Seeking Information from RBI

The Reserve Bank of India has an established communication policy. Under this, the

Reserve Bank of India regularly releases information and data on Indian economy, banking and finance. It releases the information and data at regular periodicity – daily, weekly,

monthly, quarterly, six monthly and annually. In addit ion, it also releases information, as and when required, through occasional publications, such as, studies and reports.

The Reserve Bank also places in public domain its instructions relating to banking, finance,

foreign exchange and other related subjects. Further, the Reserve Bank also disseminates information, especially of general interest, through daily press releases.

The information and data routinely released by the Reserve Bank are available on its website (www.rbi.org.in)

The details of information that is already available from the Reserve Bank of India are:

Policy Statements of the Governor, RBI

The policy Statements of the Governor, Reserve Bank of India provide a framework for the

monetary, structural and prudential measures that are taken from time to time against the background of an assessment of macroeconomic and monetary developments. Up to 2004, the Annual Policy Statement was announced in April/May every year and was followed by a

Mid-Term Review in October/November. In order to provide a distinctive focus on monetary policy and developmental policies, the format of presentation of the policy Statement was modified in the Annual Policy Statement of April 2005. The Statement now consists of two

parts: Part I. Annual Statement on Monetary Policy for the Year; and Part II Annual Statement on Developmental and Regulatory Policies for the Year. There is a Mid-term Review of the Annual Policy Statement in October, as in the past, covering both Part I and

Part II of the Statement. In addition, a First Quarter Review of Part I of the Statement in July and a Third Quarter Review in January is scheduled every year. The quarterly reviews of monetary policy provide the opportunity for structured communication with markets on a

more frequent basis while retaining the flexibility to take specific measures as the evolving circumstances warrant.

Annual Publications

Annual Report

The annual report of the Reserve Bank is the most important document released every year in late August. It is the statement of the Board of Directors on the state of the economy, the

working of the Reserve Bank and on the balance sheet of the Reserve Bank. It also presents an assessment and prospects of the Indian economy.

The annual report is a statutory document relating to the financial year of the Reserve Bank (July to June) and is released in August.

Report on Trend and Progress of Banking in India

This is also a statutory publication produced by the central bank. Presented annually, this

document is a review of the policies for and performance of the financial sector for the preceding year. The publication, covering period from April to March, is generally released around November/December.

Report on Currency and Finance

This annual document is presented by the staff of the central bank. Since 1998-99 the Report

dwells on a particular theme and presents a detailed economic analysis of the issues related to the theme. While the focus of the Report is on the policy approach, issues and challenges

relevant to India, the various Chapters present these developments against the recent theoretical developments and the accumulated cross-country empirical evidence. Since the publication is released around December, it also serves the purpose of presenting a mid-year review of the economy.

Handbook of Statistics on the Indian Economy

This publication is a major initiative by the Reserve Bank aimed at improving data dissemination by providing a useful storehouse of statistical information at one place. The publication provides time-series data (annual/quarterly/monthly/fortnightly/daily) pertaining to

a broad spectrum of economic variables, including data on national income, output, prices, money, banking, financial markets, public finance, trade and balance of payments. The publication is also available in a hard copy as well as a CD-ROM format.

Database on Indian Economy

Also available on the RBI website is a database on Indian Economy which gives time series

data on a wide range of subjects relating to India’s economy, banking and finance. This site also allows the visitor to cull out the data and use it for research.

State Finances

A Study of State Budgets, this publication provides a comprehensive analytical assessment of the finances of the State Governments. Consolidated data of all State Governments are analysed in addition to State-wise analysis to draw policy implications.

Statistical Tables relating to Banks in India

This annual publication contains comprehensive data relating to the commercial banking sector. It covers balance sheet information as well as performance indicators of each commercial bank in India including those registered abroad. The data are presented bank group-wise and state-wise.

Basic Statistical Returns

Yet another data-oriented publication, this annual presents comprehensive data on number of offices, employees, deposits and credit as per occupation of scheduled commercial banks. One of the features of this publication is that region-wise, state-wise and district-wise information is made available to the public.

Quarterly Publications

Macroeconomic and Monetary Developments

Issued a day before the Annual Policy Statement of the Governor, Reserve Bank of India and Mid-Term/Quarterly Reviews, this publication provides an analytical review of macroeconomic and monetary developments during the period under review providing the

necessary information and technical analysis. Up to 2004, the publication was brought out annually along with the Annual Policy Statement in April/May. However, from 2005, these are published on a quarterly basis a day before the Annual Policy Statement and its Mid-

Term/Quarterly Reviews.

Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks

This data-oriented publication gives data on deposits and credit of scheduled commercial banks for each quarter. The data compiled from bank returns are presented center-wise, state-wise, population group-wise and bank group-wise.

The publication is available for the quarters ending March, June, September and December in the month after the end of the quarter.

Monthly Publications

RBI Bulletin

This is a monthly publication released in the first week of every month. The Bulletin publishes analytical articles based on data collected by the Reserve Bank often specifically for the

purpose. It carries speeches of the Governor, Deputy Governors and Executive Directors. The speeches are useful in improving the understanding of the central bank's policies. Other useful inclusions in the Bulletin are important press releases and circulars issued by different

departments of the Reserve Bank and data relating to economy, finance and banking. Often, significant reports released by the Reserve Bank including the Annual Report and the Report on Trend and Progress of Banking in India are issued as supplements to this monthly publication.

Monetary and Credit Information Review

This is a monthly four-page periodical aimed at operational level bankers. The periodical summarises important circulars issued by the central bank during the month. It is published between 1st and 5th of every month.

Weekly Publications

Weekly Statistical Supplement to the RBI Bulletin

This publication presents the weekly balance sheet of the Reserve Bank and other

developments relating to financial, commodity and bullion markets. This is published on every Friday at 5 pm.

Daily

Press Releases

The Reserve Bank releases through its daily press releases data on money market operations and reference rates for four major currencies, namely, the US Dollar, Euro, Pound

Sterling and the Japanese Yen. The press releases are also issued on other issues that may be of general public interest such as important banking regulations, new currency notes, rejection or cancellation of certificate of registration of non-banking finance companies, status of urban cooperative banks, etc.

Occasional Publications

Occasional Papers

This is published once in four months and carries research papers presented by the professional staff of the Reserve Bank. The publication reflects the views of the authors. The Occasional Papers are being published thrice a year from 1999 onwards.

DRG Studies

These are research studies conducted by external experts in India in collaboration with the internal staff members of the Reserve Bank. The Development Research Group is a forum that institutionalises participation of external expertise in in-house research.

Reports

Besides these, the Reserve Bank also publishes reports of committees set up by it for feedback and for wider dissemination of information.

Brochures

The Reserve Bank brings out occasional booklets to familiarise the general public about the facilities available to them mainly in the area of foreign exchange.

Lectures

The Reserve Bank of India has instituted three annual lectures. Two of these commemorate past Governors of the Reserve Bank and one a noted monetary economist.

RBI Website

The Reserve Bank maintains an active website (URL: http://www.rbi.org.in). All the

information released by the Reserve Bank is also simultaneously made available on the website in pdf and Word formats. The data are provided in excel format. The site is updated several times a day.

In keeping with its objective of bringing in greater transparency in its decision making

process, the Reserve Bank is committed to releasing more and more information in public domain.

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Disclosure Policy

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Disclosure Log

The Reserve Bank of India also places all the information it releases in response to the requests received under the Right to information Act, 2005 on its website, if, in its view, the information could be of general public interest. Such information is furnished in this disclosure log.

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Your suggestions

If you feel that the Reserve Bank of India should release any information in addition to what it already releases, please send us your suggestions by email . If, however, you need any specific information on an ad hoc basis, you may make an application under the Right to

information Act, 2005. It needs to be emphasised that this mechanism is only meant for seeking information and NOT for making complaints. The Reserve Bank of India has a separate mechanism for redressal of complaints against banks and its own departments.

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Complaints against Banking Services

The Reserve Bank of India has provided for a separate channel for lodging complaints against poor quality of services rendered by a bank. If you have a complaint/grievance against a bank for poor quality of service rendered by any of its offices/branches, please

approach the Nodal Officer of the bank. In case you are not satisfied with the bank's response you can also file a complaint with the Banking Ombudsman in your State. The Banking Ombudsman is an office set up by the Reserve Bank of India to give speedy and

cost effective resolution of grievances to the bank customers. For more details on Banking Ombudsman Scheme and their contact numbers, please visithttp://www.rbi.org.in/scripts/AboutUsDisplay.aspx?pg=Om budsmen.htm

Complaints against RBI Services

In case you have a complaint against any department of the Reserve Bank of India for poor

quality of services rendered, you may send your complaint to the Complaints Redressal Cell of the respective Regional Office of the Reserve Bank of India. For details of contact, please visit the Regional Offices section of the RBI website (http://www.rbi.org.in/scripts/RegionalOffices.aspx)

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Making an Application under the Right to Information Act, 2005

Citizens of India will have to make the request for information in writing, clearly specifying the information sought under the Right to Information Act, 2005. The application for request should give the contact details (postal address, telephone number, fax number, email

address) so that the applicants can be contacted for clarifications or the information. Since as per the Act, information can be furnished only to citizens of India, you will have to give your citizen status as well.

How do I send my application?

As per the Right to Information (Regulation of Fee and Cost) Rules, 2005 prescribed by the

Government of India: a request for obtaining information under Section 6(1) of RIA needs to be accompanied by an application fee of Rs.10 by way of cash against proper receipt or by DD or bankers’ cheque payable to the Accounts Officer of the public authority.

You could send your request by post accompanied by the application fee of Rs.10/- payable by demand draft or bankers’ cheque or Indian Postal Order favouring Reserve Bank of

India. The fee can also be paid in cash along with the application. Applications can also be made over fax or email in which case, the Reserve Bank will acknowledge the application and give a serial number to the application and communicate the fees to be paid by the

applicant. The applicant will, while quoting the serial number of his application, need to send the application fee. The Reserve Bank will take up the application for consideration, as required under the Act, only after the application fee has been received.

Where do I send my request?

You can send your request to any of the following addresses:

Appellate Authority, CPIO and Alternate CPIO

With effect from November 16, 2009, the delivery of information under RTI Act in the

Reserve Bank of India will be in a decentralised manner with Chief General Managers/Advisers/General Managers – in –charges of our various Central Office Departments as Central Public Information Officers (CPIOs) and in their absence, the other

Chief General Managers/General Managers of the departments would be designated as CPIOs. Shri S.Karuppasamy, Executive Director has been designated as the Appellate Authority. Requests to any of the departments of the Reserve Bank of India under RTI Act

could be submitted at the addresses given in the list below or at the RIA Division, Reserve Bank of India, Amar Building, First Floor, Sir P.M.Road, Mumbai – 400 001. Requests can also be submitted by email.

List of CPIOs together with E-mail ids, Addresses and Brief Description of the Departments

Name and Address of the Department

Brief Description of the Function/Area of Work

Name and Designation of

CPIO

E-mail id for

Requests under

RTI Act

E-mail id for

Appeals under

RTI Act

Customer Services Department

Reserve Bank of India Central Office 1st Floor, Amar

Building Sir P.M.Road Mumbai – 400 001

Redressal of complaints against deficiency in

services of all scheduled banks and also against different departments of

RBI; Administering the Banking Ombudsman (BO) Scheme including

processing of appeals against the decisions of BO.

Smt Suma Varma, Chief General

Manager

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email

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here to send email

Department of Banking Operations and Development

Reserve Bank of India Central Office 12th Floor, Central

Office Building Shahid Bhagat Singh

Regulation of scheduled commercial banks (excluding RRBs)

Shri Deepak Singhal, Chief General

Manager –in- Charge

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email

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here to

send email

Road

Mumbai – 400 001

Department of Banking Supervision

Reserve Bank of India Central Office Centre 1, World Trade

Centre Cuffe Parade, Colaba Mumbai – 400 005

Supervision of scheduled commercial banks and

financial institutions in terms of the provisions of BR Act 1949 and RBI Act

1934, approval for appointment of statutory auditors in scheduled

commercial banks,and monitoring of frauds in banks and NBFCs.

Shri G. Jaganmohan

Rao, CGM-in-Charge

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to send email

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here to send email

Department of Communication Reserve Bank of India

Central Office 12th Floor, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Dissemination of information and developing material for financial

literacy/education

Alpana Killawala Chief General Manager

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email

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send email

Department of Currency Management

Reserve Bank of India Central Office 4th Floor, Amar Building

Sir P.M.Road Mumbai – 400 001

Note and coin issue and currency management

Shri B.P. Vijayendra, Chief General

Manager – in –Charge

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email

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send email

Department of

Economic and Policy Research Reserve Bank of India

Central Office 6th to 9th Floors, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Studies and analyses the

basic issues and problems (both domestic and international) affecting the

Indian economy

Shri B. M. Misra,

Officer-in-Charge

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email

Department of Expenditure and Budgetary Control

Reserve Bank of India Central Office 2nd Floor, Main

Building Shahid Bhagat Singh Road

Mumbai – 400 001

Preparation of the Budget of the Bank; Administration of Expenditure Rules;

Administration and management of Provident Fund, Gratuity &

Superannuation Funds, Ambedkar Fund and Leave Encashment Fund ;

Administration of Housing Loan Rules; All establishment related

Shri B. Srinivas, Chief General Manager

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email

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payments & pension

disbursement etc ; Focal point of establishment related matters for all

Regional Offices and Salary Drawing Units

Department of

External Investments and Operations Reserve Bank of India

Central Office 22nd Floor, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Management and

investment of foreign exchange reserves of the Reserve Bank of India

Smt. Madhumita

Sarkar Deb, Chief General Manager-in-

Charge

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email

Department of Government and Bank Accounts

Reserve Bank of India Central Office 4th Floor, Byculla

Office Building Opp.Mumbai Central Station

Byculla, Mumbai – 400 008

Bankers to the banks and governments and accounting for public debt

of central and state governments. It is also responsible for

maintenance of the Reserve Bank's internal accounts and compilation

of its weekly statement of affairs and annual balance sheets

Shri A. K. Bera, Chief General Manager –in-

Charge

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email

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here to

send email

Department of

Information Technology Reserve Bank of India

Central Office 14th Floor, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Procurement and

Maintenance of Computer Systems and Network Systems for use in RBI.

Designing, developing and

operationalising major IT projects in RBI.

Dr.

A.S.Ramasastri, Chief General Manager

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email

Department of Non-Banking Supervision Reserve Bank of India

Central Office Centre 1, World Trade Centre

Cuffe Parade, Colaba Mumbai – 400 005

Regulation and Supervision of Non Banking Financial Companies

Kum. Uma Subramaniam, Chief General

Manager – in – Charge

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email

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here to

send email

Department of

Payment and Settlement Systems Reserve Bank of India

Central Office 14th Floor, Central Office Building

Regulation and oversight

on the Payment and Settlement Systems which encompass the cheque

based clearing systems managed by the Reserve Bank and other commercial

Shri Vijay Chugh,

Chief General Manager

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email

Shahid Bhagat Singh

Road Mumbai – 400 001

banks, Electronic Clearing

Service (ECS), Electronic Funds Transfer (EFT) System, the inter-

institutional Government Securities clearing, NEFT (National Electronic Funds

Transfer ), Card Payments, Mobile Payments and Authorisation of

applications for setting up Payment Systems

Department of

Statistics and Information Management

Reserve Bank of India Central Office C-8/9, Bandra-Kurla

Complex Bandra (E), Mumbai – 400 051

Collection, processing and

dissemination of data on banking, corporate and external sectors

Shri

A.B.Chakraborty, Officer-in-Charge

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email

Financial Markets Department Reserve Bank of India

Central Office 23rd Floor, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Provides an integrated market interface for the Reserve Bank and to bring

about integration in the Reserve Bank’s conduct of monetary operations

Shri G. Mahalingam, Chief General

Manager

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email

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here to

send email

Foreign Exchange

Department Reserve Bank of India Central Office

11th Floor, Central Office Building Shahid Bhagat Singh

Road Mumbai – 400 001

Facilitating both residents

and non-residents to undertake foreign exchange transactions

within the provisions of the Foreign Exchange Management Act, 1999 and

Notifications, Regulations, Rules, Orders, etc made there under

Shri Rudra

Narayan Kar, Chief General Manager

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email

Human Resource Management Department

Reserve Bank of India Central Office 20th Floor, Central

Office Building Shahid Bhagat Singh Road

Mumbai – 400 001

General administration including recruitment, posting, confirmation,

promotion and transfer of employees/officers, matters relating to vigilance,

discipline and security of Bank's premises. Developmental aspects of

human resources in the Reserve Bank.

Shri Sandip Ghose, Chief General Manager-in-Charge

Shri Bazil Shaikh Chief General Manager

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here to

send email

Inspection Carries out inspections to Shri U S Paliwal, Click here

Department

Reserve Bank of India Central Office C-7/8 th Floor,

Bandra-Kurla Complex Bandra (E), Mumbai – 400 051

examine, evaluate and

report on the adequacy and reliability of existing systems and follow-up by

offices of the Bank.

Chief General

Manager to send

email

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here to send email

Internal Debt Management Department

Reserve Bank of India Central Office 23rd Floor, Central

Office Building Shahid Bhagat Singh Road

Mumbai – 400 001

Floatation of Central/State Government – preparation of calendar for issuances of

Govt of India dated securities and Treasury Bills, etc and regulation of

the Primary Dealers.

Shri K.K. Vohra Chief General Manager

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email

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send email

Legal Department Reserve Bank of India

Central Office Centre 1, World Trade Centre

Cuffe Parade, Colaba Mumbai – 400 005

Tender legal advice on various matters referred by

the operational departments /offices/ associates of the Reserve

Bank

Shri G.S.Hegde, Principal Legal

Adviser

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to send email

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here to send email

Monetary Policy

Department Reserve Bank of India Central Office 24th Floor, Central

Office Building Shahid Bhagat Singh Road

Mumbai – 400 001

Formulation, monitoring

and implementation of monetary policy.

Dr. M D Patra,

Adviser-in- Charge

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Premises Department Reserve Bank of India

Central Office 5th Floor, Central Office Building

Shahid Bhagat Singh Road Mumbai – 400 001

Construction and maintenance of premises of

the Bank

Shri K. R Ananda, Chief General

Manager

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email

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send email

Rajbhasha Vibhag Reserve Bank of India Central Office

Garment House Dr.A.B.Road, Worli Mumbai – 400 008

Oversees implementation of Official Language Policy and other developmental

activities for promotion of Hindi in the Bank

Dr. Ramakant Gupta, Deputy General

Manager

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email

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here to

send email

Reserve Bank Services Board Reserve Bank of India

Central Office Byculla Office Building Opp.Mumbai Central

Work relating to recruitment of officers and promotion

Shri T.B.Satyanarayan, General Manager

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email

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here to

send email

Station

Byculla, Mumbai – 400 008

Rural Planning and

Credit Department Reserve Bank of India Central Office

10th Floor, Central Office Building Shahid Bhagat Singh

Road Mumbai – 400 001

Policy formulation relating

to rural credit and priority sector lending; Monitoring the performance of

commercial banks in priority sector lending & under Central Government-

sponsored poverty alleviation programmes; Implementation and

monitoring of Lead Bank Scheme; Regulatory functions over Regional

Rural Banks and State/ Central Cooperative Banks; Promoting Financial

Inclusion.

Shri C D

Srinivasan, Chief General Manager

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email

Secretary's Department

Reserve Bank of India Central Office 16th Floor,

Central Office Building Shahid Bhagat Singh Road

Mumbai – 400 001

Work connected with the meetings of the Central

Board and its Committee as also the Administrators of the Reserve Bank of

India Employees' Provident Fund.

Ms J M Jivani, Chief General

Manager

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to send email

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here to send email

Urban Banks Department Reserve Bank of India

Central Office 1st Floor, Garment House

Worli, Mumbai – 400 008

Urban Banks Department is entrusted with the responsibility of regulation

and supervision of the banking related functions of primary(urban) cooperative

banks

Shri A. Udgata, Chief General Manager-in-

Charge

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email

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here to

send email

List of Banking Ombudsmen designated as CPIOs together with their E-mail ids, Addresses and Area of Jurisdiction

Name and Address of the

Banking Ombudsman Area of Jurisdiction E-mail id for

Requests under RTI Act

E-mail id for

Appeals under RTI Act

Shri Rajesh Kumar

C/o Reserve Bank of India La Gajjar Chambers, Ashram Road,

Ahmedabad-380 009

Gujarat, Union Territories of

Dadra and Nagar Haveli, Daman and Diu

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send email

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send email

Shri M.Palanisamy C/o Reserve Bank of India

10/3/8, Nrupathunga Road

Karnataka Click here to send email

Click here to send email

Bangalore-560 001

Shri A.F.Naqvi C/o Reserve Bank of India Hoshangabad Road,

Post Box No.32, Bhopal-462 011

Madhya Pradesh and Chattisgarh

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Click here to send email

Shri B K Bhoi

C/o Reserve Bank of India Pt. Jawaharlal Nehru Marg Bhubaneswar-751 001

Orissa Click here to

send email

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send email

Shri J Tashi C/o Reserve Bank of India 4th Floor, Sector 17,

Central Vista Chandigarh – 160 017

Himachal Pradesh, Punjab,Union

Territory of Chandigarh and

Panchkula, Yamuna Nagar and Ambala

Districts of Haryana

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Shri S. Ganesh

C/o Reserve Bank of India, Fort Glacis,16, Rajaji Salai, Chennai 600 001

Tamil Nadu, Union Territories

of Puducherry (except Mahe Region) and

Andaman

and Nicobar Islands

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send email

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send email

Shri B.B.Sangma C/o Reserve Bank of India

Station Road, Pan Bazar Guwahati - 781 001

Assam, Arunachal Pradesh, Manipur, Meghalaya,

Mizoram, Nagaland and Tripura

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Shri M. Sebastian C/o Reserve Bank of India 6-1-56, Secretariat Road

Saifabad, Hyderabad-500 004

Andhra Pradesh Click here to send email

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Shri N.P.Topno

C/o Reserve Bank of India, 4th floor Rambagh Circle, Tonk Road Jaipur - 302

004

Rajasthan Click here to

send email

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send email

Smt Madhavi Sharma C/o Reserve Bank of India M.G. Road, Post Box No.82

Kanpur-208 001

Uttar Pradesh (excluding Districts of Ghaziabad and Gautam Budh Nagar) and

Uttaranchal

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Shri M.S. Soy C/o Reserve Bank of India

15, Nethaji Subhas Road Kolkata-700 001

West Bengal and Sikkim Click here to send email

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Smt. R Sebastian

C/o Reserve Bank of India Garment House, Ground Floor,

Dr. Annie Besant Road, Worli, Mumbai-400 018

Maharashtra and Goa Click here to

send email

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send email

Shri M Rajeshwara Rao Delhi, Jammu & Kashmir, Click here to Click here to

C/o Reserve Bank of India,

6, Sansad Marg, New Delhi - 110001

Haryana (except the districts

of Ambala, Yamuna Nagar and Panchkula), and the

districts of Ghaziabad and

Gautam Budh Nagar of Uttar Pradesh

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Shri Shrimohan Yadav

C/o Reserve Bank of India, South Gandhi Maidan, Patna - 800 001

Bihar and Jharkhand Click here to

send email

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send email

Shri F R Joseph C/o Reserve Bank of India Bakery Junction

Thiruvananthapuram-695 033

Kerala, Union Territory of Lakshadweep and Union

Territory of Puducherry (only

Mahe Region).

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CAPIOs (Nodal Officers) at different Regional Offices

Regional Office

Name Designation Address Telephone

& FAX No.

Ahmedabad Smt. Raji Subramanian

DGM Reserve Bank of India Dept.of Administration

& Personnel Management, 4th floor,

Nr.Gandhi Bridge, Ahmedabad 380 014

Tel. 079-27582584

Fax: 079-2754 1993

Bangalore Shri Siladitya

Choudhury DGM Reserve Bank of

India, Department of Administration and

Personnel Management 10/3/8 Nrupathunga

Road Bangalore 560 001

Off.080-22180340

Fax: 080-2221 0185

Belapur Shri B.

Chandrasekhar DGM Reserve Bank of India

Plot No.3, Sector 10 H.H. Nirmaladevi Marg

CBD, Belapur, Navi Mumbai 400 614

022 – 27560229

Fax: 022-2757 0015

Bhopal Smt. Veena Srivastava

DGM Reserve Bank of India Department of

Banking Supervision Hoshangabad Road, Bhopal

Off.0755-2552459 Fax:

07552551383 Email

Bhubaneshwar Shri V Ranga Rao

GM Reserve Bank of India, Pt. Jawharlal Nehru

0674-2395857 09437024463 Fax: 0674-239

Marg,

Bhubaneswar - 751 001

5911

Chandigarh Shri. Amarnath GM Reserve Bank of India

Rural Planning & Credit Department, Central Vista,

Sector 17, Chandigarh-160 017

0172-2721410

FAX – 0172-270 1252

Chattisgarh Shri Anand

Upadhyay AGM Reserve Bank of India

Subhashish Parisar 54/949 Satya Prem Vihar,

Mahadev Ghat Road, Sundar Nagar, Raipur 492013

Chattisgarh

Tel. 0771 -

2242330 Fax: 0771 - 2242323

Chennai Shri S.B.Sureshkumar

DGM (Admn) Reserve Bank of India Human Resource

Development Department, Rajaji Salai,

Chennai-600 001

044-25360823 044-25399203

Fax: 044-23565220 Mobile:

09819696109

Guwahati Shri J.M.Thotngam

DGM,ADMN Reserve Bank of India, Station Road,

Guwahati - 781 001

(0361) 2512804 09435732942

Fax: 0361- 254 0033

Hyderabad Shri R.K. Rajput DGM (Admn) Reserve Bank of India

Dept. of Administration and Personnel

Management, 6-1-56, Saifabad, Hyderabad 500 004

Off. 040-

23234612 Fax: 040-23232766

Jammu Shri G.C.Talukdar

DGM Reserve Bank of India Dept. of Administration and

Personnel Rail Head Complex, Jammu 180 012

0191-2471188 Fax: 0191-247 0576

Jaipur Shri R Giridharan DGM Reserve Bank of India Ram Bagh Circle, Tank Road,

Jaipur 302 004

0141-511 3043 Fax: 0141- 256 3016

09819292595

Kochi Shri. C.V.George GM(O-i-C) Reserve Bank of India Ernakulam North, Kochi -682 018

0484-2400985 Fax: 0484-2402715

Kanpur Smt. N.K. Sethi GM Reserve Bank of India Department of Non-banking Supervision,

0512 –2306246 Fax: 0512- 2305872

Mahatma Gandhi

Road, Kanpur 208 001

Kolkata Shri J.K.Pandey GM Reserve Bank of India

Rural Planning & Credit Department 15, N.S. Road,

Kolkata-700 001

033-2262 3590

Fax: 033- 2231 3645/2230 9589

Lucknow Shri Hemant Kumar Soni

DGM Reserve Bank of India 8-9,Vipin Khand

Gomti Nagar Lucknow - 226 010

0522-2304869 Fax: 0522-

2393064 Mobile: 09415003217

Mumbai Regional Office

Smt. Supriya Pattnaik

CGM Reserve Bank of India Mumbai Regional Office, Main Building

Shahid Bhagat Singh Marg Mumbai 400 001

022-22614652 Fax: 022-22626144

Nagpur Shri V K Nayak General

Manager (HRMD)

Reserve Bank of India

Human Resource Management Department,

Civil lines , Opp Vidhan Bhawan Nagpur 440 001

0712-2532232(O)

9860193312(M) Fax No. 0712-2551715

New Delhi Shri S.K.Misra DGM, HRD Reserve Bank of India DESACS, 6, Parliament Street,

New Delhi-110 001

(011) 23716289 Fax: 011-2371 1250

Patna Shri G. V Negi DGM, DAPM Reserve Bank of India Dept. of

Administration & Personnel Management,

South Gandhi Maidan, Patna 800 001

(0612) 2320929 Fax: 0612

2320901

Thiruvana-

nthapuram Smt. Susan

Kurien DGM Reserve Bank of

India, Department of Banking Supervision,

Bakery Junction, PB No. 6507 Thiruvananthapuram -

695033

0471-2328848

Fax: 0471-230 2011

Panaji Shri Jaikish GM/OIC Reserve Bank of India Foreign Exchange Dept.,

3A/B, Sesa Ghor, Patto Panaji, Goa 403 001

Tel: 0832 -2438656-60 Fax: 0832- 2438657

Raipur Shri Anand AGM Reserve Bank of 0771 2242330

Upadhyay India

Subhashish Parisar 54/949 Satya Prem

Vihar Mahadev Ghat Road, Sunder Nagar

Raipur Chattisgarh 492 013

Fax: 0771-

2242353

Ranchi Shri A. K. Lal AGM Reserve Bank of

India R.R.D.A. Building Pragati Sadan (4th

Floor) Kutchery Road Ranchi - 834001

0651 -

2210512(O) 09771431564(M) Fax: 0651-

2210515/11

Shimla Shri Kali Dass AGM Reserve Bank of India

B-478, Sector IV, New Shimla Himachal Pradesh

171009

0177-2670482 Fax: 0177-2670481

Reserve Bank Staff College

Shri U Chiranjeevi

Vice - Principal

Reserve Bank of India 359, Anna Salai,

Teynampet, Chennai 600 018

Tel: 044 24334310

Fax: 044 2434 6905

College of Agricultural

Banking, Pune

Shri R.L.Sharma VP College of Agriculture Banking,

University Road, Pune 411 016

020 2552 1436 Fax: 020-2553

7089

CAPIOs (Nodal Officers) at different Departments

Central Office Department

Name of CAPIO

Designation Address Telephone No. (STD code - 022)

Customer Service Department

Shri D G Kale DGM Reserve Bank of India, Customer Service Department

1st Floor, Amar Building Sir P.M.Road Mumbai

400 001

(022)-22642678 FAX-22632480

Department of Communication

Shri R.R.Sinha

DGM Reserve Bank of India, Department of Communication, 12th

Floor, Central Office Building, S.B.Singh Marg, Mumbai 400

001

022 -22601000 (ext. 2901) Fax: 022 –

22660358/22703279

Rajbhasha, CO Ms. Chhaya Raje

AGM Reserve Bank of India, Rajbhasha

(022) 24983357 9869038850 FAX-

Vibhag, Garment

House, Mumbai 400 018

2498 2077

Secretary's

Department Shri

S.M.Routray DGM Reserve Bank of

India Secretary’s Department

Central Office Building Shahid Bhagat Singh

Marg Mumbai 400 001

2270 4190

FAX –2270 1034

Department of

Currency Management

Shri Arvind

Kumar AGM Reserve Bank of

India Department of Currency

Management Central Office Building

Shahid Bhagat Singh Marg Mumbai 400 001

022-22612879

FAX-22662442

Department of Government and Bank Accounts

Shri B K Mishra

GM Reserve Bank of India Dept.of Government

& Bank Accounts, 4th floor, Mumbai 400 008

23001670 FAX-2300 0370

Department of

External Investments and Operations

Shri Rajendra

Kumar DGM Reserve Bank of

India Department of External Investments

and Operations Central Office Building

Shahid Bhagat Singh Marg Mumbai 400 001

22664604

FAX – 2266 4667

Financial Markets Department

Smt. Nishita Raje

Director Reserve Bank of India Financial Markets

Department Central Office Building

Shahid Bhagat Singh Marg Mumbai 400 001

022 - 22610645 FAX - 022 - 22634824

Department of Payment and Settlement

Systems

Shri Simanchala

Sahu

DGM Reserve Bank of India Department of

Payment and Settlement Systems Central Office

022 - 22610381 FAX- 2269 1557

Building

Shahid Bhagat Singh Marg Mumbai 400 001

Inspection Department

Shri K.P.V. Karunakarani

GM Reserve Bank of India Inspection

Department, C-7, 8th floor, Bandra-Kurla

Complex Mumbai 400 051

022 - 26572330 FAX – 022 - 26572029

Legal Department Shri A.

Krishna Gopal

Deputy Legal

Adviser Reserve Bank of

India Legal Department 5th Floor, Centre – 1

WTC, Cuffe Parade Colaba Mumbai-400 005

22153496

FAX – 22153470

Foreign Exchange Department

Shri George John

GM Reserve Bank of India Foreign Exchange

Department Central Office Building

Shahid Bhagat Singh Marg Mumbai 400 001

022-22610589 FAX – 022 - 22610623

Department of

Banking Operations and Development

Shri R N Jena GM Reserve Bank of

India Dept. of Banking Operations and

Development, World Trade Centre, Centre 1

Mumbai 400 005

22701205

Fax-22160970

Department of Banking

Supervision

Smt. Ambika Sreekumar

GM Reserve Bank of India

Department of Banking Supervision, Central Office,

Centre-1, Mumbai 400 005

22150776 FAX – 2218 0157

Department of

Non Banking Supervision

Shri S K

Pabale DGM Reserve Bank of

India Dept. of Non-Banking Supervision, World

Trade Centre, Centre 1 Mumbai - 400 005

22166128

FAX – 2215 0540

Internal Debt

Management Department

Dr.(Smt.) S.

Saggar Director Reserve Bank of

India Internal Debt Management Dept.

022-22610680

FAX- 2264 4158

Central Office Bldg,

Shahid Bhagat Singh Marg, Mumbai 400 001

Department of Statistics and Information

Management

Dr.O.P.Mall Director Reserve Bank of India Dept.of Statistics and

Information Management, C-9, 6th floor, Bandra-

Kurla Complex, Mumbai 400 051

022 - 2657 2513 Fax – 022 - 2657 0848

Human Resource

Management Department, Central Office

Smt. Shakti

Dubey DGM Reserve Bank of

India Dept.of Administration &

Personnel Management, Central Office

Building Shahid Bhagat Singh Marg

Mumbai 400 001

022 - 22632366, ext. 4103

FAX – 022 - 22632480

Monetary Policy Department

Smt Indrani Banerjee

GM Reserve Bank of India

Monetary Policy Dept, Central Office building Shahid Bhagat Singh

Marg Mumbai 400 001

022 - 22692426 FAX – 022-2265

1685

Urban Banks

Department Shri. L. M.

Kamble GM Reserve Bank of

India Urban Banks Department,

Garment House, Dr. Annie Besant Road

Mumbai 400 018

022 - 24973008

FAX –022- 2497 4040

Department of Information

Technology

Smt. Baljit Birah

DGM Reserve Bank of India

Department of Information Technology

Central Office Building Shahid Bhagat Singh

Marg Mumbai 400 001

022- 2262 4851 FAX – 022-2269

1557

Rural Planning

and Credit Department

Smt. A S

Telang DGM Reserve Bank of

India Rural Planning and Credit Department

022- 22662102

FAX: 022- 2262 1011

Central Office

building Shahid Bhagat Singh Marg

Mumbai 400 001

Department of Expenditure and

Budgetary Control

Shri. T V Sudhakar

GM Reserve Bank of India

Department Expenditure and Budgetary Control,

Main building, Shahid Bhagat Singh Marg

Mumbai 400 001

022- 2261 0486 FAX: 022-2261 0535

Department of Economic and

Policy Research

Shri. Ashok Sahoo

Director Reserve Bank of India

Department of Economic Analysis & Policy, Amar Building,

6th Floor, Sir P.M.Road, Fort Mumbai 400 001

022- 22700696 FAX: 022-22700674

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How long will the RBI take to provide information?

The Reserve Bank of India will, within 30 days of receipt of the application for information along with the fee, communicate to the requestor whether it can or cannot provide the information.

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Will I have to pay to get the information?

As per the Right to Information (Regulation of Fee and Cost) Rules, 2005, the public authority shall charge:

Rs.2/- for each page (in A-4 or A-3 size paper) created or copied; actual charge or cost price of a copy in larger size paper; actual cost or price for samples or models; and for inspection of records, no fee for the first hour; and a fee of Rs.5/- for each

subsequent hour (or fraction thereof )

Further, to provide information under Section 7(5) of the Right to Information Act, 2005, the public authority shall charge:

Rs. 50/- per diskette or floppy; and for information provided in printed form at the price fixed for such publication or Rs.

2/- per page of photocopy for extracts from the publication

At what stage will I have to pay this cost?

If the Reserve Bank of India has the information and can provide it to you it will, within 30 days of its receiving the application along with appropriate fees, communicate to you the cost of providing the information as prescribed under Section 7(1) of Right to Information Act.

When will I get the information?

You will get the information, once the Reserve Bank of India receives the payment towards providing the information.

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Can the Reserve Bank of India refuse to give me information?

The Right to Information Act, 2005 under Sections 8 and 9 exempts certain categories of information from disclosures. These include:

Information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State,

relation with foreign State or lead to incitement of an offence. Information which has been expressly forbidden to be published by any court of law

or tribunal or the disclosure of which may constitute contempt of court; Information, the disclosure of which would cause a breach of privilege of Parliament

or the State Legislature; Information including commercial confidence, trade secrets or intellectual property,

the disclosure of which would harm the competitive position of a third party, unless

the competent authority is satisfied that larger public interest warrants the disclosure of such information;

Information available to a person in his fiduciary relationship, unless the competent

authority is satisfied that the larger public interest warrants the disclosure of such information;

Information received in confidence from foreign Government; information, the disclosure of which would endanger the life or physical safety of any person or

identify the source of information or assistance given in confidence for law enforcement or security purposes;

Information which would impede the process of investigation or apprehension or

prosecution of offenders; Cabinet papers including records of deliberations of the Council of Ministers,

Secretaries and other officers; Information which relates to personal information the disclosure of which has no

relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual.

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Do I have a right to appeal?

Under the Right to Information Act, 2005 you have the right to appeal if you are not satisfied with the information provided by the Reserve Bank or its decision not to provide the information requested.

Who should I address my appeal to?

You can address the appeal to:

1) Shri S.Karuppasamy (Appellate Authority)

Executive Director Reserve Bank of India, Central Office Building,

Shahid Bhagat Singh Marg, Mumbai – 400 001. Click here to send email.

Tel : 022 - 22611083 Fax : 022 - 22632052

2) Dr. (Smt) Deepali Pant Joshi (Alternate Appellate Authority) Executive Director

Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Marg, Mumbai – 400 001.

What if I am not satisfied even with the decision of the appellate authority?

Under the Act, if you are not satisfied with the decision of the appellate authority within the Reserve Bank of India, you can appeal to the Central Information Commission appointed in terms of Chapter 3 of the Right to Information Act, 2005.

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Objectives of the Reserve Bank of India

The Reserve Bank of India Act, 1934 sets out the objectives of the Reserve Bank: '...to regulate the issue of Bank notes and the 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 formulation, framework and institutional architecture of monetary policy in India have evolved around these objectives – maintaining price stability, ensuring adequate flow of credit to sustain the growth momentum, and securing financial stability. The responsibility for ensuring financial stability has entailed the vesting of extensive powers in and operational objectives for the Reserve Bank for regulation and supervision of the financial system and its constituents, the money, debt and foreign exchange segments of the financial markets in India and the payment and settlement system. The endeavour of the Reserve Bank has been to develop a robust, efficient and diversified financial system so as to anchor financial stability and to facilitate effective transmission of monetary policy. In addition, the Reserve Bank

pursues operational objectives in the context of its core function of issuance of bank notes and currency management as well as its agency functions such as banker to Government (Centre and States) and management of public debt; banker to the banking system including regulation of bank reserves and the lender of the last resort. The specific features of the Indian economy, including its socio-economic characteristics, make it necessary for the Reserve Bank to operate with multiple objectives. Regulation, supervision and development of the financial system remain within the legitimate ambit of monetary policy broadly interpreted in India. The role of communication policy, therefore, lies in articulating the hierarchy of objectives in a given context in a transparent manner, emphasising a consultative approach as well as autonomy in policy operations andharmony with other elements of

macroeconomic policies.

II. The Goals of Communication Policy The long-term goals of the Reserve Bank’s communication policy are intimately interlinked to its objectives. Faced with multiple tasks and a complex mandate, clear and structured communication is critical for effective functioning as well as enlarging the spheres of traditional policy instruments. The goal of communication policy thus would be to anchor inflation expectation by promoting credibility and understanding of monetary policy; and enabling private stakeholders to map the changing economic circumstances into anticipation of the broad policy direction with reasonable accuracy. In order to be realistic, the communication policy also highlights impediments to achieving stated objectives in a conditional sense. The principal goals of the Reserve Bank’s communication strategy are:

Transparency for strengthening accountability and credibility

Clarity on the Reserve Bank’s role and responsibilities with regard to its multiple objectives; managing inherent complementarities/ contradictions and transition

Managing expectations and promoting two-way flow of information/ perceptions

Dissemination of information, statistics and research at various frequencies

III. Principles of Communication

The guiding principles of the Reserve Bank’s communication policy in the context of its goals are transparency, comprehensiveness, relevance and timeliness with a view to improving public understanding as a systematic process of continuous efforts. This communication policy is best described as principle-based rather than rule-based. The specific features of this communication strategy which distinguish them from the country experience are as follows:

The Reserve Bank’s approach to communicating the policy stance is to explain the stance with rationale, information and analysis but to refrain from explicit forward guidance with a preference for market participants and analysts to draw their own inferences;

The content of communication relates to monetary policy, financial regulation and supervision, external sector management, currency management and public debt

management covering policy changes as well as the path of structural reforms;

Communication is combined with policy measures and administrative strategies;

Coherence, clarity and credibility in articulation through speeches, formal structured and periodic statements, statutory/ non-statutory publications and committee reports as well

as in reporting/dissemination of information;

Communication is sensitive to the target audience – researchers, analysts, academics, media, regulated entities, other central banks, rating agencies, multilateral institutions, market participants, Government agencies and the common person including urban and rural population, women, senior citizens, defence personnel, school children – and therefore different types of communication instruments are used;

Dissemination of information through the official website on real time basis;

Pre-announced periodicity of standard communication instruments in order to enhance timeliness; advance release calendars and review cycles;

The overall approach to communication is driven by the principle of democratic accountability, enhancing the effectiveness of monetary policy by creating news and/or reducing noise. In this context, the Reserve Bank’s communication policy recognises the complexity inherent in the Indian economy at this stage of its development. Communication, therefore, has to be carried out at different levels. Where projections on the future path of key macroeconomic variables are provided, they have to be set out in conditional forms and linked to incoming information with an assessment of the balance of risks. While policy and market preferences generally converge and communication is intended to improve the predictability of policy decisions, an element of surprise can often enhance the effectiveness of policy actions when the preferences are in opposing directions, albeit with concurrent or ex post communication of the rationale thereof.

In the context of deregulation and liberalisation of financial markets, it is recognised that wider dissemination of information and transparency in policy formulation and operations contributes significantly to efficient markets by minimising uncertainty and thereby contributing to market stability. As financial markets become more efficient in the country, and as the economy becomes more open, communication policy will adapt to these ongoing changes.

IV. Instruments

The Reserve Bank of India releases information on areas relating to the economy, banking and the financial sector. Adequacy, stringent standards of quality and timeliness are the hallmarks of these information releases. Dissemination of information takes place through traditional and non-traditional channels such as press releases, notifications, publications - regular and occasional - advertisements in print and electronic media, posters in bank branches and also through participation in exhibitions. Speeches, press and video conferences with national and regional media following the announcement of annual, quarterly and half yearly monetary policy and occasional interviews of the top management with media articulate the Reserve Bank's assessment of the economy and the financial system and form a significant part of its communication strategy. For equitable distribution of market sensitive information, the Reserve Bank uses embargoed releases through news agencies. Significantly, the Reserve Bank uses

its website as a major channel for two-way communication.

The Reserve Bank of India communicates with various types of audiences. In order to reach out to the common person, the Reserve Bank releases information in 11 regional languages spoken by a large section of the population, apart from in English and in Hindi.

V. Target Groups and Communication Objectives

The Reserve Bank of India communicates with various target groups ranging from other central banks, multilateral agencies and analysts to students and the general public. The objectives and instruments for communicating vary with each type of audience. An illustrative list of target audiences and the objectives and instruments for communication with these audiences is placed at Annex 1.

VI. Two-way Communication

The Reserve Bank of India has established the practice of two-way communication. It closely monitors the media which is first reference point for feedback. Any new regulation or a major change in the existing regulation is preceded by detailed consultations with stakeholders. The Reserve Bank actively uses its website for obtaining feedback. A detailed description of the Reserve Bank's experience in two- way communication is placed at Annex II. VII. Release Calendar

The Reserve Bank of India releases information on areas relating to economy, banking and finance. The information is released through daily press releases, notifications and circulars, regular and occasional publications, reports of Committees and Working/Study Groups and speeches of the Governor/Deputy Governors. A detailed calendar of the information released by the Reserve Bank is placed at Annex III. VIII. Guidelines and Some Operational Practices

The following broad guidelines and operational practices for communication have evolved from the objectives of the organisation and goals of communication

The Reserve Bank’s communication should contribute towards achieving the overall objectives of transparency, credibility and accountability.

It should always endeavour to place all disseminable information in the public domain so as to discourage individual seeking of information.

Information, especially market sensitive information, should be released in a timely and equitable manner.

Communication should primarily be focussed on issues of importance to central banking.

The Governor and the Deputy Governor in charge of monetary policy are the only spokespersons on issues relating to monetary policy and the exchange rate.

Deputy Governors are the spokespersons in their respective areas of responsibility;

Executive Directors and heads of departments speak only with explicit authority from the Governor/Deputy Governors;

Regional heads clarify local issues;

The head of Department of Communication is the general spokesperson of the Reserve Bank;

All press releases except those relating to regional matters – which are rare- are centrally issued by the Department of Communication;

All information – in print form or on the website - is simultaneously placed in public domain.

IX. Setting up of dedicated Information Desks

It is proposed to set up an Information Desk manned by trained personnel in Central Office and in each Regional Office, under the direct oversight of the Regional Director which the common person may approach either through mail or telephone or fax or in person to get information or to clarify doubts. The personnel may be selected on the basis of aptitude and awareness of the Reserve Bank's functions and may be trained in communications. The names of the selected personnel may be cleared by Deputy Governor's Committee. There may be at least two persons identified to man these posts so as to have a constant back up. A proposal to set up a toll-free call centre manned by RBI staff trained in these areas may also be examined.

X. Dissemination of Communication Policy

The Communication Policy of Reserve Bank of India will be reviewed every year in June and will

be placed before its Board, in its meeting held in July. Once approved by the Board, the policy will be placed on the RBI website in English, Hindi and 11 other regional languages.

Dr. D. Subbarao

05-09-2008 to date

Dr. D. Subbarao today took over as the 22nd Governor of the Reserve Bank of

India. Dr. Subbarao has been appointed for a three-year term. Prior to this

appointment, Dr. Subbarao was the Finance Secretary in the Ministry of Finance, Government of India.

Dr. Subbarao has earlier been Secretary to the Prime Minister's Economic Advisory Council (2005-2007), lead economist in the World Bank (1999-2004),

Finance Secretary to the Government of Andhra Pradesh (1993-98) and Joint

Secretary in the Department of Economic Affairs, Ministry of Finance, Government

of India (1988-1993).

Dr. Subbarao has wide experience in public finance. In the World Bank, he worked on issues of public finance in countries of Africa and East Asia. He managed a

flagship study on decentralisation across major countries of East Asia including

China, Indonesia, Vietnam, Philippines and Cambodia. Dr. Subbarao was also involved in initiation of fiscal reforms at the state level. Dr. Subbarao has written

extensively on issues in public finance, decentralisation and political economy of reforms.

Born on August 11, 1949, Dr. Subbarao holds a B.Sc (Hons) in Physics from the Indian Institute of Technology, Kharagpur and M.Sc in Physics from the Indian

Institute of Technology, Kanpur. Dr. Subbarao also holds an MS degree in Economics from Ohio State University. He was a Humphrey fellow at MIT during

1982-83. He has a Ph.D. in Economics with thesis on fiscal reforms at the sub-national level. Dr. Subbarao was a topper in the All India Civil Service

examination for entry into Indian Administrative Services and Indian Foreign

Services in 1972. He was one of the first IITians to join the civil service.

Swap Facility for Expansion of Export Credit in Foreign Currency

With a view to further enhancing the flow of credit to the export sector, the Reserve Bank of India has introduced a US Dollar-Rupee swap facility to support incremental Pre-shipment Export Credit in Foreign Currency (PCFC) by banks. Scheduled banks (excluding Regional Rural Banks (RRBs)) will have the option to access rupee refinance to the extent of the swap with the Reserve Bank under a special export credit refinance facility.

The swap facility will be available to scheduled banks (excluding RRBs) from January 21, 2013

till June 28, 2013 for fixed tenor of 3/6 months. During any particular month, the maximum amount of US dollars that banks would be eligible to avail of from the Reserve Bank through swaps would be equal to the incremental PCFC disbursed with reference to a base date (November 30, 2012), subject to a limit. The limits would be communicated to eligible individual banks separately. The limits would be reviewed periodically based on actual utilisation and other relevant factors. The overall cap for the banking system works out to US Dollar 6.5 billion.

Under the swap arrangement, a bank can buy US Dollars up to its eligible swap limit from the Reserve Bank and simultaneously sell the same amount of US Dollars forward as per the term of the swap at the prevailing market rates for swaps of similar tenor. At the end of the swap term, the bank will exchange with the Reserve Bank, the US Dollars against the rupees. The Reserve Bank’s decision regarding the pricing of the swap shall be final and no request for any modification/revision to the same would be entertained.

The swap facility will be operationalised by the Financial Markets Department of the Reserve Bank at Mumbai. Depending upon the prevailing market conditions, and other relevant factors, the Reserve Bank would exercise the right to decide on the day of operation, the number of

banks that can avail of the facility on any particular day, the maximum amount of swap that the Reserve Bank would undertake with the banks on any particular day and the maximum quantum of swap that each bank can do on any particular day.

The new facility comes into effect on January 21, 2013. Eligible banks can approach the Financial Markets Department by e-mailwith their request for US Dollar swaps indicating the amount of US Dollars and tenor (3 month or 6 month).

The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.[2] The share capital was

divided into shares of ₹100 each fully paid which was entirely owned by private shareholders in the beginning.[3] Following India's independence in 1947, the RBI was nationalised in the year

1949.

The RBI plays an important part in the development strategy of the Government of India. It is a member bank of the Asian Clearing Union. The general superintendence and direction of the

RBI is entrusted with the 21-member-strong Central Board of Directors—the Governor (currently Duvvuri Subbarao), four Deputy Governors, two Finance Ministry representative, ten Government-nominated Directors to represent important elements from India's economy, and

four Directors to represent Local Boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these Local Boards consist of five members who represent regional interests, as

well as the interests of co-operative and indigenous banks.

The bank is also active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion (AFI). View the Bank on AFI's member map or read RBI financial inclusion-related news.

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Reserve Bank of India

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Reserve Bank of India

भारतीय ररज़र्व बैंक

RBI seal RBI headquarters in Mumbai

Headquarters Mumbai, Maharashtra

Established 1 April 1935

Governor Duvvuri Subbarao

Currency Indian rupee (₹)

ISO 4217 Code INR

Reserves US$302.1 billion [1][Note 1]

Base borrowing rate 8.00%

Base deposit rate 6.00%

Website http://www.rbi.org.in

The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.[2] The share capital was

divided into shares of ₹100 each fully paid which was entirely owned by private shareholders in the beginning.[3] Following India's independence in 1947, the RBI was nationalised in the year

1949.

The RBI plays an important part in the development strategy of the Government of India. It is a member bank of the Asian Clearing Union. The general superintendence and direction of the RBI is entrusted with the 21-member-strong Central Board of Directors—the Governor

(currently Duvvuri Subbarao), four Deputy Governors, two Finance Ministry representative, ten Government-nominated Directors to represent important elements from India's economy, and

four Directors to represent Local Boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these Local Boards consist of five members who represent regional interests, as well as the interests of co-operative and indigenous banks.

The bank is also active in promoting financial inclusion policy and is a leading member of the

Alliance for Financial Inclusion (AFI). View the Bank on AFI's member map or read RBI financial inclusion-related news.

Contents

1 History

o 1.1 1935–1950 o 1.2 1950–1960 o 1.3 1960–1969

o 1.4 1969–1985 o 1.5 1985–1991

o 1.6 1991–2000 o 1.7 Since 2000

2 Structure

o 2.1 Central Board of Directors o 2.2 Governors

o 2.3 Supportive bodies o 2.4 Offices and branches

3 Main functions

o 3.1 Bank of Issue o 3.2 Monetary authority

o 3.3 Regulator and supervisor of the financial system o 3.4 Managerial of exchange control o 3.5 Issuer of currency

o 3.6 Banker of Banks 4 Detection Of Fake currency

o 4.1 Developmental role o 4.2 Related functions

5 Policy rates and reserve ratios

o 5.1 Bank Rate o 5.2 Reserve requirement cash reserve ratio (CRR)

o 5.3 Statutory Liquidity ratio (SLR) 6 Further reading 7 Notes

8 References 9 External links

History

1935–1950

The old RBI Building in Mumbai

The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the First World War. It came into picture according to the guidelines laid down by Dr.

Ambedkar. RBI was conceptualized as per the guidelines, working style and outlook presented by Dr Ambedkar in front of the Hilton Young Commission. When this commission came to India under the name of “Royal Commission on Indian Currency & Finance”, each and every member

of this commission were holding Dr Ambedkar’s book named “The Problem of the Rupee – It’s origin and it’s solution.”[4] The Bank was set up based on the recommendations of the 1926

Royal Commission on Indian Currency and Finance, also known as the Hilton–Young Commission.[5] The original choice for the seal of RBI was The East India Company Double Mohur, with the sketch of the Lion and Palm Tree. However it was decided to replace the lion

with the tiger, the national animal of India. The Preamble of the RBI describes its basic functions to regulate the issue of bank notes, keep reserves to secure monetary stability in India, and

generally to operate the currency and credit system in the best interests of the country. The Central Office of the RBI was initially established in Calcutta (now Kolkata), but was permanently moved to Bombay (now Mumbai) in 1937. The RBI also acted as Burma's central

bank, except during the years of the Japanese occupation of Burma (1942–45), until April 1947, even though Burma seceded from the Indian Union in 1937. After the Partition of India in 1947,

the Bank served as the central bank for Pakistan until June 1948 when the State Bank of Pakistan commenced operations. Though originally set up as a shareholders’ bank, the RBI has been fully owned by the Government of India since its nationalization in 1949.[6]

1950–1960

In the 1950s, the Indian government, under its first Prime Minister Jawaharlal Nehru, developed a centrally planned economic policy that focused on the agricultural sector. The administ ration

nationalized commercial banks[7] and established, based on the Banking Companies Act of 1949 (later called the Banking Regulation Act), a central bank regulation as part of the RBI. Furthermore, the central bank was ordered to support the economic plan with loans.[8]

1960–1969

As a result of bank crashes, the RBI was requested to establish and monitor a deposit insurance system. It should restore the trust in the national bank system and was initialized on 7 December

1961. The Indian government founded funds to promote the economy and used the slogan

Developing Banking. The Government of India restructured the national bank market and nationalized a lot of institutes. As a result, the RBI had to play the central part of control and

support of this public banking sector.

1969–1985

In 1969, the Indira Gandhi-headed government nationalized 14 major commercial banks. Upon

Gandhi's return to power in 1980, a further six banks were nationalized.[5] The regulation of the economy and especially the financial sector was reinforced by the Government of India in the 1970s and 1980s.[9] The central bank became the central player and increased its policies for a lot

of tasks like interests, reserve ratio and visible deposits.[10] These measures aimed at better economic development and had a huge effect on the company policy of the institutes. The banks

lent money in selected sectors, like agri-business and small trade companies.[11]

The branch was forced to establish two new offices in the country for every newly established office in a town.[12] The oil crises in 1973 resulted in increasing inflation, and the RBI restricted monetary policy to reduce the effects.[13]

1985–1991

A lot of committees analysed the Indian economy between 1985 and 1991. Their results had an effect on the RBI. The Board for Industrial and Financial Reconstruction, the Indira Gandhi

Institute of Development Research and the Security & Exchange Board of India investigated the national economy as a whole, and the security and exchange board proposed better methods for

more effective markets and the protection of investor interests. The Indian financial market was a leading example for so-called "financial repression" (Mackinnon and Shaw).[14] The Discount and Finance House of India began its operations on the monetary market in April 1988; the

National Housing Bank, founded in July 1988, was forced to invest in the property market and a new financial law improved the versatility of direct deposit by more security measures and liberalisation.[15]

1991–2000

The national economy came down in July 1991 and the Indian rupee was devalued. [16] The currency lost 18% relative to the US dollar, and the Narsimahmam Committee advised

restructuring the financial sector by a temporal reduced reserve ratio as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish a private banking sector. This

turning point should reinforce the market and was often called neo-liberal.[17] The central bank deregulated bank interests and some sectors of the financial market like the trust and property markets.[18] This first phase was a success and the central government forced a diversity

liberalisation to diversify owner structures in 1998.[19]

The National Stock Exchange of India took the trade on in June 1994 and the RBI allowed nationalized banks in July to interact with the capital market to reinforce their capital base. The

central bank founded a subsidiary company—the Bharatiya Reserve Bank Note Mudran Limited—in February 1995 to produce banknotes.[20]

Since 2000

The Foreign Exchange Management Act from 1999 came into force in June 2000. It should

improve the foreign exchange market, international investments in India and transactions. The RBI promoted the development of the financial market in the last years, allowed online banking

in 2001 and established a new payment system in 2004–2005 (National Electronic Fund Transfer).[21] The Security Printing & Minting Corporation of India Ltd., a merger of nine institutions, was founded in 2006 and produces banknotes and coins.[22]

The national economy's growth rate came down to 5.8% in the last quarter of 2008–2009[23] and

the central bank promotes the economic development.[24]

Structure

RBI runs a monetary museum in Mumbai

Central Board of Directors

The Central Board of Directors is the main committee of the central bank. The Government of

India appoints the directors for a four-year term. The Board consists of a governor, four deputy governors, fifteen directors to represent the regional boards, one from the Ministry of Finance and ten other directors from various fields. The Government nominated Arvind Mayaram, as a

director of the Central Board of Directors with effect from August 7, 2012 and vice R Gopalan, RBI said in a statement on August 8, 2012. .[25]

Governors

The current Governor of RBI is Duvvuri Subbarao. The RBI extended the period of the present governor up to 2013. There are four deputy governors, Deputy Governor K C Chakrabarty, Urjit Patel, Shri Anand Sinha, and Shri H.R. Khan . Deputy Governor K C Chakrabarty's

term has been extended further by 2 years. Subir Gokarn was replaced by Mr. Urjit Patel in january 2013.[26]

Supportive bodies

The Reserve Bank of India has ten regional representations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. The representations are formed by five members,

appointed for four years by the central government and serve—beside the advice of the Central Board of Directors—as a forum for regional banks and to deal with delegated tasks from the

central board.[27] The institution has 22 regional offices.

The Board of Financial Supervision (BFS), formed in November 1994, serves as a CCBD committee to control the financial institutions. It has four members, appointed for two years, and takes measures to strength the role of statutory auditors in the financial sector, external

monitoring and internal controlling systems.

The Tarapore committee was set up by the Reserve Bank of India under the chairmanship of former RBI deputy governor S. S. Tarapore to "lay the road map" to capital account

convertibility. The five-member committee recommended a three-year time frame for complete convertibility by 1999–2000.

On 1 July 2007, in an attempt to enhance the quality of customer service and strengthen the

grievance redressal mechanism, the Reserve Bank of India created a new customer service department.

Offices and branches

The Reserve Bank of India has 4 zonal offices.[28] It has 19 regional offices at most state capitals

and at a few major cities in India. Few of them are located in Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur,

Kolkata, Lucknow, Mumbai, Nagpur, Patna, and Thiruvananthapuram. Besides it has 09 sub-offices at Agartala, Dehradun, Gangtok, Kochi, Panaji, Raipur, Ranchi, Shillong, Shimla and Srinagar.

The bank has also two training colleges for its officers, viz. Reserve Bank Staff College at

Chennai and College of Agricultural Banking at Pune. There are also four Zonal Training Centres at Mumbai, Chennai, Kolkata and New Delhi.

Main functions

Reserve Bank of India regional office, Delhi entrance with the Yakshini sculpture depicting "Prosperity through agriculture".[29]

The RBI Regional Office in Delhi.

The regional offices of GPO (in white) and RBI (in sandstone) at Dalhousie Square, Kolkata.

Bank of Issue

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over

the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets

and liabilities of the Issue Department are kept separate from those of the Banking Department.

Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than ₹40 crore

(₹400 million) in value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in

India. Due to the exigencies of the Second World War and the post-war period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of ₹200 crore (₹2 billion), of which at least ₹115 crore (₹1.15

billion) should be in gold and ₹85 crore (₹850 million) in the form of Government Securities.[citation needed] The system as it exists today is known as the minimum reserve system.

Monetary authority

The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. It formulates, implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to

productive sectors. Objectives are maintaining price stability and ensuring adequate flow of credit to productive sectors. The national economy depends on the public sector and the central

bank promotes an expansive monetary policy to push the private sector since the financial market reforms of the 1990s.

Regulator and supervisor of the financial system

The institution is also the regulator and supervisor of the financial system and prescribes broad

parameters of banking operations within which the country's banking and financial system functions.Its objectives are to maintain public confidence in the system, protect depositors'

interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective addressing of complaints by bank customers. The RBI controls the monetary supply, monitors economic

indicators like the gross domestic product and has to decide the design of the rupee banknotes as well as coins.[30]

Managerial of exchange control

The central bank manages to reach the goals of 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

The bank issues and exchanges or destroys currency notes and coins that are not fit for circulation. The objectives are giving the public adequate supply of currency of good quality and

to provide loans to commercial banks to maintain or improve the GDP. The basic objectives of RBI are to issue bank notes, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. RBI maintains the economic structure of the

country so that it can achieve the objective of price stability as well as economic development, because both objectives are diverse in themselves.

Banker of Banks

Nagpur branch holds most of India's gold deposits

RBI also works as a central bank where commercial banks are account holders and can deposit money.RBI maintains banking accounts of all scheduled banks.[31] Commercial banks create credit. It is the duty of the RBI to control the credit through the CRR, bank rate and open market

operations. As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lender of the last resort by providing emergency advances to the banks. It

supervises the functioning of the commercial banks and take action against it if need arises.

Detection Of Fake currency

In order to curb the fake currency menace, RBI has launched a website to raise awareness among masses about fake notes in the market.www.paisaboltahai.rbi.org.in provides information about

identifying fake currency.[32]

Developmental role

The central bank has to perform a wide range of promotional functions to support national

objectives and industries.[8] The RBI faces a lot of inter-sectoral and local inflation-related problems. Some of this problems are results of the dominant part of the public sector.[33]

Related functions

The RBI is also a banker to the government and performs merchant banking function for the central and the state governments. It also acts as their banker. The National Housing Bank (NHB) was established in 1988 to promote private real estate acquisition.[34] The institution

maintains banking accounts of all scheduled banks, too. RBI on 7 August 2012 said that Indian banking system is resilient enough to face the stress caused by the drought like situation because

of poor monsoon this year.[35]

Policy rates and reserve ratios

Policy rates, Reserve ratios, lending, and deposit rates as of 30, October, 2012

Bank Rate 9.00%

Repo Rate 8.00%

Reverse Repo Rate 7.00%

Cash Reserve Ratio (CRR) 4.25%

Statutory Liquidity Ratio (SLR) 23.0%

Base Rate 9.75%–10.50%

Reserve Bank Rate 4%

Deposit Rate 8.50%–9.00%

Bank Rate

RBI lends to the commercial banks through its discount window to help the banks meet depositor’s demands and reserve requirements for long term. The Interest rate the RBI charges the banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and

money supply in the market, it will decrease the bank rate and if RBI wants to reduce the liquidity and money supply in the system, it will increase the bank rate. As of 25 June 2012 the

bank rate was 9.0%.

Reserve requirement cash reserve ratio (CRR)

Every commercial bank has to keep certain minimum cash reserves with RBI. Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the

monetary stability in the country, RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate, [Before the enactment of this amendment, in terms of

Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 5% and 20% of total of their demand and time liabilities]. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to effect a decrease or an

increase in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with

the RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 4.75%. ( As a Reduction in CRR by 0.25% as on Date- 17 September 2012). -25 basis points cut in Cash Reserve Ratio(CRR) on 17 September

2012, It will release Rs 17,000 crore into the system/Market. The RBI lowered the CRR by 25 basis points to 4.25% on 30 October 2012, a move it said would inject about 175 billion rupees

into the banking system in order to pre-empt potentially tightening liquidity.

Statutory Liquidity ratio (SLR)

Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger

proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact. A higher liquidity ratio diverts the bank funds

from loans and advances to investment in government and approved securities.

In well-developed economies, central banks use open market operations—buying and selling of eligible securities by central bank in the money market—to influence the volume of cash

reserves with commercial banks and thus influence the volume of loans and advances they can make to the commercial and industrial sectors. In the open money market, government securities

are traded at market related rates of interest. The RBI is resorting more to open market operations in the more recent years.

Generally RBI uses three kinds of selective credit controls:

1. Minimum margins for lending against specific securities.

2. Ceiling on the amounts of credit for certain purposes. 3. Discriminatory rate of interest charged on certain types of advances.

Direct credit controls in India are of three types:

1. Part of the interest rate structure i.e. on small savings and provident funds, are administratively set.

2. Banks are mandatory required to keep 23% of their deposits in the form of government securities.

3. Banks are required to lend to the priority sectors to the extent of 40% of their advances.

Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in

order to maintain price stability and achieve high economic growth.[1] In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy. Other objectives of the monetary policy of India, as stated by RBI, are:

Price Stability

Price Stability implies promoting economic development with considerable emphasis on price stability. The centre of focus is to facilitate the environment which is favourable to

the architecture that enables the developmental projects to run swiftly while also maintaining reasonable price stability.

Controlled Expansion Of Bank Credit

One of the important functions of RBI is the controlled expansion of bank credit and money supply with special attention to seasonal requirement for credit without affecting

the output. Promotion of Fixed Investment

The aim here is to increase the productivity of investment by restraining non essential

fixed investment. Restriction of Inventories

Overfilling of stocks and products becoming outdated due to excess of stock often results is sickness of the unit. To avoid this problem the central monetary authority carries out this essential function of restricting the inventories. The main objective of this policy is to

avoid over-stocking and idle money in the organization Promotion of Exports and Food Procurement Operations

Monetary policy pays special attention in order to boost exports and facilitate the trade. It is an independent objective of monetary policy.

Desired Distribution of Credit Monetary authority has control over the decisions regarding the allocation of credit to

priority sector and small borrowers. This policy decides over the specified percentage of credit that is to be allocated to priority sector and small borrowers.

Equitable Distribution of Credit

The policy of Reserve Bank aims equitable distribution to all sectors of the economy and all social and economic class of people

To Promote Efficiency It is another essential aspect where the central banks pay a lot of attention. It tries to increase the efficiency in the financial system and tries to incorporate structural changes

such as deregulating interest rates, ease operational constraints in the credit delivery system, to introduce new money market instruments etc.

Reducing the Rigidity RBI tries to bring about the flexibilities in the operations which provide a considerable autonomy. It encourages more competitive environment and diversification. It maintains

its control over financial system whenever and wherever necessary to maintain the discipline and prudence in operations of the financial system.

Contents

1 Monetary operations 2 Major Operations

3 Key Indicators 4 References

Monetary operations

Monetary operations involve monetary techniques which operate on monetary magnitudes such as money supply, interest rates and availability of credit aimed to maintain Price Stability, Stable

exchange rate, Healthy Balance of Payment, Financial stability, Economic growth. RBI, the apex institute of India which monitors and regulates the monetary policy of the country stabilizes the

price by controlling Inflation. RBI takes into account the following monetary policies:

Major Operations

Open Market Operations An open market operation is an instrument of monetary policy which involves buying or

selling of government securities from or to the public and banks. This mechanism influences the reserve position of the banks, yield on government securities and cost of

bank credit. The RBI sells government securities to contract the flow of credit and buys government securities to increase credit flow. Open market operation makes bank rate policy effective and maintains stability in government securities market.

CRR Graph from 1992 to 2011[2] Cash Reserve Ratio

Cash Reserve Ratio is a certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances .Higher the CRR with the RBI lower will be the liquidity in the system and vice-versa.RBI is empowered to vary CRR

between 15 percent and 3 percent. But as per the suggestion by the Narshimam committee Report the CRR was reduced from 15% in the 1990 to 5 percent in 2002. As

of November 2012, the CRR is 4.25 percent.[3]

SLR Graph from 1991 to 2011[4] Statutory Liquidity Ratio

Every financial institute have to maintain a certain amount of liquid assets from their time and demand liabilities with the RBI. These liquid assets can be cash, precious metals,

approved securities like bonds etc. The ratio of the liquid assets to time and demand liabilities is termed as Statutory Liquidity Ratio.There was a reduction from 38.5% to 25% because of the suggestion by Narshimam Committee. The current SLR is 23%.[5]

Bank Rate Graph from 1991 to 2011 Bank Rate Policy[6]

Bank rate is the rate of interest charged by the RBI for providing funds or loans to the banking system. This banking system involves commercial and co-operative banks,

Industrial Development Bank of India, IFC, EXIM Bank, and other approved financial institutes. Funds are provided either through lending directly or rediscounting or buying

money market instruments like commercial bills and treasury bills. Increase in Bank Rate increases the cost of borrowing by commercial banks which results into the reduction in credit volume to the banks and hence declines the supply of money. Increase in the bank

rate is the symbol of tightening of RBI monetary policy. Bank rate is also known as Discount rate. The current Bank rate is 9%.

Credit Ceiling In this operation RBI issues prior information or direction that loans to the commercial banks will be given up to a certain limit. In this case commercial bank will be tight in

advancing loans to the public. They will allocate loans to limited sectors. Few example of ceiling are agriculture sector advances, priority sector lending.

Credit Authorization Scheme Credit Authorization Scheme was introduced in November, 1965 when P C Bhattacharya was the chairman of RBI. Under this instrument of credit regulation RBI as per the

guideline authorizes the banks to advance loans to desired sectors.[7] Moral Suasion

Moral Suasion is just as a request by the RBI to the commercial banks to take so and so action and measures in so and so trend of the economy. RBI may request commercial banks not to give loans for unproductive purpose which does not add to economic growth

but increases inflation. Repo Rate and Reverse Repo Rate

Repo rate is the rate at which RBI lends to commercial banks generally against government securities. Reduction in Repo rate helps the commercial banks to get money at a cheaper rate and increase in Repo rate discourages the commercial banks to get

money as the rate increases and becomes expensive. Reverse Repo rate is the rate at which RBI borrows money from the commercial banks. The increase in the Repo rate

will increase the cost of borrowing and lending of the banks which will discourage the public to borrow money and will encourage them to deposit. As the rates are high the availability of credit and demand decreases resulting to decrease in inflation. This

increase in Repo Rate and Reverse Repo Rate is a symbol of tightening of the policy. As of December 2012, the repo rate is 8 % and reverse repo rate is 7%

Key Indicators

As of 31 October 2012, the key indicators are[8][9]

Indicator Current rate

Inflation 7.5%

Bank rate 9%

CRR 4.25%

SLR 23%

Repo rate 8%

Reverse repo rate 7%