Organization and management of RBI

The regulatory framework for the financial sector in India broadly consist of the Ministry of Finance Of the Government of India which administers the companies act 1956 and the Security contract act ,1956;Reserve Bank of India and Board of Financial Supervision ;the Security and Exchange Board of India ;Insurance Regulatory Authority;the governing board of various stock exchanges and apex financial institution like IDBI ,SIDBI ,NCB etc.

Let us talk about the management and organization of RBI

RBI started functioning from 1 April 1935 on term of RBI Act ,1934.But till Jan 1949 it was a private shareholder institution and after it it become state-owned institution under RBI Act 1948.

The bank is managed by Central Board Of Directors ,four Local Board of Directors , committee of Central board of Directors.The function of Local Board Of Directors is to Central Board on matters referred to them.The Final control of Bank vests in Central board which consist of Governor ,4 deputy governors , and 15 Director nominated by central government.The committee of Central board consist of Governor , deputy Governor and such other Director as may be present at a given meeting.RBI has four regional representation like north in New Delhi , south in Chennai ,east in Kolkata, west in Mumbai .For each region Local Board of directors are there ,each consisting 5 members appointed by Central Government.Directors are appointed for 4 years.

The internal Organization set-up of Bank has been modified and expanded from time to time but the underlying principal is functional specialization with adequate coordination.Bank has been divided into large no of Departments .Apart from banking and Issue departments,there are 20 more departments and 3 training establishment at the central office of the Bank.

In my next post I would like to talk about the functions of RBI.

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