Reserve Bank of India

RESERVE BANK OF INDIA [central bank of India]

• ESTABLISHMENT: On April 01, 1935 (provisions under the RBI Act, 1934). Initially it was at Kolkata but later it was in Mumbai,1937. Originally it was privately owned but since the nationalization in the year 1949 it was totally under the Government of India owned.

 

• ACCORDING TO PREAMBLE:
• It was to regulate the issuance of notes in the country.
• To maintain stability in India.
• To operate the country’s credit control policy to its advantage.
• To have modern monetary framework so that to obtain the “Complex Economy”.
• To maintain the price stability in our country.

 

• CENTRAL BOARD:
• The RBI affairs consists of 10 Board of Directors and they are appointed by the Government of India
• According to the Constitution of India it is further classified as:
• PERIOD /TIME:
• Appointment / nomination for a period of 4 years.

 

• ADDRESS:
• C/O CGM IN CHARGE AND SECRETARY,

SECRETARY’S DEPARTMENT,

RESERVE BANK OF INDIA,

16^TH FLOOR CENTRAL OFFICE BUILDING,

SHAHID BHAGAT SINGH MARG

MUMBAI- 400 001

   TELEPHONE: +91-11-23711333

 

• DIRECTORS NOMINATION UNDER THE FOLLOWING SECTIONS:
• Under section 8(1) (b) of the RBI Act,1934.
• Under section 8(1) (c) of the RBI Act, 1934
• Under section 8(1) (d) of the RBI Act, 1934 (as amended)

The abovesaid sections were dated on: May 03, 2021.

 

• PROFILE OF CENTRAL BOARD OF DIRECTORS:
• MEMBERSHIP: (CONSISTS OF)
• 5 Members appointed by the Central Government
• They are for a term of 4 years.

 

• THEIR FUNCTIONS:
• To advice the Central Bank about the local matters
• To represent territories and economic interests of those local cooperative and indigenous bank.
• Also, to perform such functions as delegated by the Central Bank from time to time.

 

• SITTING FEES/ HALTING ALLOWANCES OF BOARD OF DIRECTORS/MEMBERS:

 

Type of meeting	sitting fee (in inr)	halting per diem (in inr)
1.      central board   2.      local board     3.      committee of board of finance supervision and board of payment and settlement (BPSs)   4.      audit and risk subcommittee (arms), human resource management subcommittee, info. and tech. building and strategy sub committee	20,000   20,000 10,000               10,000	1,200   1,200 1,200               1,200

*NOTE: TRAVEL AND STAY EXPENSES ARE ALSO INCLUDED BY THE CENTRAL GOVEFRNMENT.

 

• OBJECTIVES OF THE PRIMARY (BFS) BOARD OF FINANCIAL SUPERVISOR IS CATOGERISED AS:
• Scheduled commercial and cooperative banks
• Small finances banks
• All India financial institutions
• Local area banks
• Payments banks
• Credit info. Complains
• Non-Banking finance companies and primary dealers

 

• UNDER THE CONSTITUTION:
• Four directors from central board as members and as in chaired by governor.
• Deputy governors of the RBI are the Ex-Officio members
• One deputy governor is traditionally
• The other deputy governor in charge of the supervision
• Also, he/she can be nominated of by the board of directors as “Vice Chairman”.

 

• BOARD OF FINANCIAL SUPERVISION WAS CONSTITUTED (BFS):
• Under Para 11 & 12 of the RBI (BFS) Regulation Act, 1994.

 

• EXERCISES AND POWERS OF THE SUB COMMISSION:
• It exercises the power and functions and also the inspection under the RBI Act, 1934 and Banking and Regulation Act, 1949.
• There should be a deputy governor who is followed by three more de[uty governor and not more than three and two directors as a ‘Central Members’.

 

• BFS MEETING:
• Normally, meets once in a month.
• It inspects meetings such as:

1. Reports
2. Reviews related to banking and non-banking sectors
3. Policy Matters.

 

Author: Presha Naik,
First Year S.N.D.T. Women's University, Law School