Structure Of Reserve Bank Of India|For All Competitive Exams||By Naveen Kumar||Classic Education
Channel: CLASSIC EDUCATION
Date: 2020-12-17

Structure Of Reserve Bank Of India|For All Competitive Exams||By Naveen Kumar||Classic Education


The Reserve Bank of India (RBI) is India’s central bank, also known as the banker’s bank. The RBI controls monetary and other banking policies of the Indian government. The Reserve Bank of India (RBI) was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank is permanently situated in Mumbai since 1937.
Establishment of Reserve Bank of India
The Reserve Bank is fully owned and operated by the Government of India.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:

Regulating the issue of Banknotes
Securing monetary stability in India
Modernising the monetary policy framework to meet economic challenges
The Reserve Bank’s operations are governed by a central board of directors, RBI is on the whole operated with a 21-member central board of directors appointed by the Government of India in accordance with the Reserve Bank of India Act.

The Central board of directors comprise of:

Official Directors – The governor who is appointed/nominated for a period of four years along with four Deputy Governors
Non-Official Directors – Ten Directors from various fields and two government Official
Organisation Structure
RBI
Objectives
The primary objectives of RBI are to supervise and undertake initiatives for the financial sector consisting of commercial banks, financial institutions and non-banking financial companies (NBFCs).

Some key initiatives are:

Restructuring bank inspections
Fortifying the role of statutory auditors in the banking system
Legal Framework
The Reserve Bank of India comes under the purview of the following Acts:

Reserve Bank of India Act, 1934
Public Debt Act, 1944
Government Securities Regulations, 2007
Banking Regulation Act, 1949
Foreign Exchange Management Act, 1999
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Credit Information Companies(Regulation) Act, 2005
Payment and Settlement Systems Act, 2007