Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
18Activity
0 of .
Results for:
No results containing your search query
P. 1
RBI

RBI

Ratings: (0)|Views: 141|Likes:
Published by PRIYANK

More info:

Categories:Topics, Art & Design
Published by: PRIYANK on Apr 17, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

10/04/2010

pdf

text

original

 
EstablishmentThe Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of theReserve Bank of India Act, 1934.The Central Office of the Reserve Bank was initially established in Calcutta but was permanentlymoved to Mumbai in 1937. The Central Office is where the Governor sits and where policies areformulated.Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fullyowned by the Government of India.PreambleThe Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetarystability in India and generally to operate the currency and credit system of the country to itsadvantage."Top Central BoardThe Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
y
 
Appointed/nominated for a period of four years
y
 
Constitution:
o
 
Official Directors
 
F
ull-time : Governor and not more than four Deputy Governors
o
 
Non-Official Directors
 
 
 Nominated by Government: ten Directors from various fields and onegovernment Official
 
Others: four Directors - one each from four local boards
F
unctions : General superintendence and direction of the Bank's affairsTop Local Boards
y
 
One each for the four regions of the country in Mumbai, Calcutta, Chennai and NewDelhi
 
y
 
Membership:
y
 
consist of five members each
y
 
appointed by the Central Government
y
 
for a term of four years
F
unctions : To advise the Central Board on local matters and to represent territorial andeconomic interests of local cooperative and indigenous banks; to perform such other functions asdelegated by Central Board from time to time.Top 
F
inancial SupervisionThe Reserve Bank of India performs this function under the guidance of the Board for 
F
inancialSupervision (B
F
S). The Board was constituted in November 1994 as a committee of the CentralBoard of Directors of the Reserve Bank of India.ObjectivePrimary objective of B
F
S is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.ConstitutionThe Board is constituted by co-opting four Directors from the Central Board as members for aterm of two years and is chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members. One Deputy Governor, usually, the Deputy Governor in charge of  banking regulation and supervision, is nominated as the Vice-Chairman of the Board.B
F
S meetingsThe Board is required to meet normally once every month. It considers inspection reports andother supervisory issues placed before it by the supervisory departments.B
F
S through the Audit Sub-Committee also aims at upgrading the quality of the statutory auditand internal audit functions in banks and financial institutions. The audit sub-committee includesDeputy Governor as the chairman and two Directors of the Central Board as members.The B
F
S oversees the functioning of Department of Banking Supervision (DBS), Department of  Non-Banking Supervision (DNBS) and
F
inancial Institutions Division (
F
ID) and gives directionson the regulatory and supervisory issues.
F
unctions
 
Some of the initiatives taken by B
F
S include:i.
 
restructuring of the system of bank inspectionsii.
 
introduction of off-site surveillance,iii.
 
strengthening of the role of statutory auditors andiv.
 
strengthening of the internal defences of supervised institutions.The Audit Sub-committee of B
F
S has reviewed the current system of concurrent audit, norms of empanelment and appointment of statutory auditors, the quality and coverage of statutory auditreports, and the important issue of greater transparency and disclosure in the published accountsof supervised institutions.Current
F
ocus
y
 
supervision of financial institutions
y
 
consolidated accounting
y
 
legal issues in bank frauds
y
 
divergence in assessments of non-performing assets and
y
 
supervisory rating model for banks.Top Legal
F
ramework Umbrella Acts
y
 
Reserve Bank of India Act, 1934: governs the Reserve Bank functions
y
 
Banking Regulation Act, 1949: governs the financial sector Acts governing specific functions
y
 
Public Debt Act, 1944/Government Securities Act (Proposed): Governs government debtmarket
y
 
Securities Contract (Regulation) Act, 1956: Regulates government securities market
y
 
Indian Coinage Act, 1906:Governs currency and coins
y
 
F
oreign Exchange Regulation Act, 1973/
F
oreign Exchange Management Act, 1999:Governs trade and foreign exchange marketActs governing Banking Operations
y
 
Companies Act, 1956:Governs banks as companies
y
 
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980: Relatesto nationalisation of banks
y
 
Bankers' Books Evidence Act
y
 
Banking Secrecy Act

Activity (18)

You've already reviewed this. Edit your review.
1 hundred reads
9374286276 liked this
cchethuc liked this
ishusuhani liked this
ambydhanna22 liked this
shalineepunj liked this
Salonihota liked this
ashwinshah912619 liked this
kritikam88 liked this
devagnanam liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->