Reserve Bank of India

RBI Overview:

Shareholder Bank 1935    5 Cr capital: 5 L shares @ 100

2220 share-director (likely "share-directors"), rest public    1948 - Govt Bank; RBI Act   Managed by a team: Objectives, Organization, Debt, Functions, Monetary policy

• Central Board: (21 members, Minimum 4 meetings)

Governor: nom. by govt for 3 years    4 Deputy Governor: App. by govt of India - 4 years

4 Regional Directors: Chennai, Calcutta, Mumbai, Delhi — App. by govt of India - 4 years

10 Directors: App. by govt - 4 years (60,000/- day sitting fee)

2 Secretaries: Ministry of Finance, Ministry of Commerce

• Organizations Managed by RBI:

RBI Academy, RBI Staff College, College of Agriculture Banking, NIBM (Pune), IGIDR (Mumbai), IDRBT (Hyd)

• Fully Owned Subsidiaries:

BRBNMPL: (Bharatiya Reserve Bank Note Mudran Private Limited) Mysore & Salboni (WB) (Presses) → 16 billion notes per year per shift

SPMCIL: (Security Printing and Minting Corporation of India Limited) 2 currency note printing + 2 units → Nashik + Dewas. 4 mints

DICGC: Deposit Insurance and Credit Guarantee Corporation of India

REBIT: Reserve Bank Information IT pvt limited

IFTAS: Indian Financial Technology and Allied Services

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Section 3: RBI Functions & Economic Framework

• Chief: RBI Governor

• Departments/Functions:

Banking Dept, Banking Development (Rural and semi-urban, e.g., NABARD), Banking operations, NPCC Dept, Legal, Foreign Exchange, Agri Finance, Research and statistics, Inspection, Export credit etc.

Issue of currencies: Smallest denomination 50 paisa. "Coins not produced by RBI" (controlled by Finance Min)

Bankers to the govt; Bankers to the bank; Exchange management and control; Credit control

• Currency Printing: Based on minimum 200 Cr gold and Foreign exchange reserve with RBI — 115 Cr should be gold + FX

• Finance Support:

Agri Finance (NABARD)

Industrial Finance (IFCI, IDBI, ICICI, IRBI, NHB, SIDBI)

• Economic Policy:

RBI: Price stability, growth of a dynamic economy. Makes policy decisions

Monetary Policy (RBI): Money supply, Liquidity

Fiscal Policy (GOI): Revenue, Expenses. Deficit compensated by RBI

• Inflation: Change in price of essential commodity