ECONOMICS PROJECT

CAS STUDY

The Reserve Bank of India (RBI, Hindi: ) is India's central banking institution, which
controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the
British Rule in accordance with the provisions of theReserve Bank of India Act, 1934.[4] The original share
capital was divided into shares of 100 each fully paid, which were initially owned entirely by private
shareholders.[5] Following India's independence on 15 August 1947, the RBI was nationalised on 1 January
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 Central Board of Directors: theGovernor (Dr. Raghuram Rajan), 4 Deputy Governors,
2 Finance Ministry representatives, 10 government-nominated directors to represent important elements
from India's economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata,
Chennai and New Delhi. Each of these local boards consists of 5 members who represent regional
interests, and the interests of co-operative and indigenous banks.

Shri Sudarshan Sen

Chief General Manager-in-charge
Department of Banking Regulation
Reserve Bank of India 22705688 22705691
12th Floor, Central Office Building,
Shahid Bhagat Singh Road,
Mumbai-400 001.

licensing, branch expansion and maintenance of statutory reserves, management and methods of
operations, amalgamation, reconstruction and liquidation of banking companies.

regulatory oversight of select All India Financial institutions, such as, Exim Bank, Industrial Investment
Bank of India (IIBI), National Bank for Agriculture and Rural Development (NABARD), National Housing Bank
 (NHB) and Small Industries Development Bank of India (SIDBI) and administration of the Credit Information
(Regulation) Act, 2005 and regulation of credit information companies.

approval for setting up of subsidiaries and undertaking of new activities by commercial banks as also
the regulatory functions relating to financial institutions (FIs).

promoting and fostering a sound, multi-faceted and competitive financial system by laying down norms
for prudential regulation of commercial banks/FIs.

creating pro-active environment for development of new products

keeping itself abreast of developments domestically and globally and formulating policy responses by
suggesting amendments to the existing laws/enactment of new legislation, regulation, etc.

striving to bring the regulatory standards of commercial banks/FIs on par with the international best
practices.

Department of Corporate Services

Protocol Services to top management

Coordinating management of events, seminars, meetings and providing hospitality to visiting dignitaries

Providing other support services, such as, framing guidelines for award of contracts/floatation of tenders
for printing, pricing, sales and distribution of publications and centralised procurement/arrangement of various
stationery items, courier services, etc.

Coordinating with Department of Information Technology, Human Resources Management Department

and other user departments for Electronic Documentation Management System of the Reserve Bank including
framing guidelines for preservation of documents.

Department of External Investments and Operations

Functions

Investment and management of the foreign currency and gold assets of the Reserve Bank of India,

Handling external transactions on behalf of Government of India (GOI) including transactions relating to
International Monetary Fund (IMF)

All policy matters incidental to India's membership of the Asian Clearing Union, and

Other matters relating to gold policy, membership of the Bank for International Settlements (BIS) and
bilateral banking arrangements between India and other countries like Russia, bilateral and South Asian
Association for Regional Cooperation(SAARC) currency swap arrangements

Department of Payment and Settlement Systems

Policy formulation in respect of payment and settlement systems

Authorisation of payment and settlement systems/operators

Regulation of payment and settlement systems

 Supervision and monitoring of payment and settlement systems

Laying down standards for payment and settlement systems

Designing, developing and integrating payment system projects of national importance and / or
facilitating such implementation

Implementation of the international principles relating to payment systems as enunciated by the Bank for
International Settlements

Department of Government and Bank Accounts

maintains principal deposit accounts of Central and State Governments at Central Accounts Section of
the Reserve Bank of India, Nagpur

grants ways and means advances to Central and State Governments

Carries out day to day operations by agency bank branches (authorised for this purpose) and Banking
Departments at Regional Offices.

frames the accounting policy of the Reserve Bank

finalises the weekly statement of accounts of the Issue and Banking Departments and the annual
balance sheet of the Reserve Bank

attends to matters relating to government business, such as appointment of agency banks, paying them
commission and overseeing their conducting of government business. Much of this is done in consultation with
the government

Consumer Education and Protection Department

Major Functions:

a. Dissemination of instructions/information relating to customer service and grievance redress by banks

and the Reserve Bank of India

b. Overseeing the grievance redress mechanism in respect of services rendered by various

offices/departments of the Reserve Bank

c. Administering the Banking Ombudsman Scheme

d. Acting as a nodal department for the Banking Codes and Standards Board of India (BCSBI)

e. Ensuring redress of complaints about deficiencies in customer service in banks received directly and
through CPGRAMS - Portal of Government of India.

f. Liaison between banks, Indian Banks Association, BCSBI, offices of Banking Ombudsmen and
regulatory departments of the Reserve Bank on matters relating to customer services and grievance redress and
providing policy inputs to regulatory departments of the Reserve Bank, IBA and BCSBI in this regard.

g. Compile and publish Annual Report of the Banking Ombudsman Scheme, 2006

Financial Inclusion and Development Department

 To formulate macro policy to strengthen credit flow to the priority sectors

To ensure that priority sector lending becomes a tool for banks to capture untapped business
opportunities among financially excluded sections of the society

To help expand Prime Ministers Jan Dhan Yojana (PMJDY) and to make it a sustainable and scalable
financial inclusion initiative through financial literacy

To step up credit flow to MSME sector and to rehabilitate sick units through timely credit support

To strengthen institutional arrangement, such as, state level bankers committee and Lead Bank Scheme
to facilitate these objectives