RBI - I

❑ RBI officially started on 1st April, 1935 with the

recommendation of “Hilton Young commission” or
“Royal commission in India currency & Finance” in
Kolkata with Rs 5 crore capital.
❑ Up to 1937, Kolkata was the head quarter of RBI
and after that it was permanently shifted to
Mumbai.
❑ Up to June 1948, RBI was the central bank for both
India and Pakistan up to April 1947 RBI the central
Bank for India, Pakistan & Myanmar.
❑ In 1st January, 1949 RBI was nationalized through
“Change of ownership Act-1948”.
 Functions of RBI
i. Regulator of all the banks in India and some NBFC’s.
ii. Regulator of money market related activities.
iii. Preparing monetary policy in India
iv. Forex management
v. Forex reserve management
vi. Sole authority of note issue in India
vii. Giving license to new banks opening in India
viii. Giving permission to banks for establishing of new ATM’s and branches
ix. Bankers bank
x. Banker to the central and state Govt.
xi. Lender of last resort:- Institution , usually a country’s central bank that
offers loan to banks and other eligible institutions that are in financial
difficulty
xii. Regulation of HFC’s
SPMCIL (Security printing & minting corporation of India Ltd.) :
HQ - New Delhi
Estd. - 13 January 2006
It is a wholly owned by GOI engaged in manufacture /production
of currency notes, security papers, Non-Judicial stamps
papers, Postal stamps, Bonds, Cheques, travel, DOCs viz,
passport & visa.

Mints in India :

❑ India Govt. mint - Mumbai ( )Diamond

❑ India Govt. mint - Kolkata(No symbol)
❑ India Govt. mint - Hyderabad ( * )-star
❑ India Govt. mint - Noida (.)-Dot
 Printing presses in India
❑Currency note press - Nashik (Maharashtra) - 1928
❑Bank note press - Dewas (MP) - 1975
❑BRBNMPL - Mysore(Karnataka) - Machines supplied by Switzerland
❑BRBNMPL - Salboni (WB) Machines Supplied by Japan
❑Watermark security paper Manufacturing Mill – Hoshangabad /
Narmadapuram, MP
Management of RBI :
The management of RBI rests with 21 Directors those who are divided in to two parts i.e.
21 Directors
Official Directors Non-official Directors
Governor of RBI - Shaktikanta Das ❑ Directors from various field i.e.
from statistics, Management,
Economics, Accounting , foreign
exchange Management etc.
Deputy Governors of RBI : ❑ Directors from MOF (usually
❑ Michael Debabrata Patra economic affairs & Fin. Services
secretary) financial secretary
❑ Mahesh Kumar Jain
(Section-8(I)(d) of RBI Act-1934)
❑ M. Rajeswar Rao
❑ 4 Other Directors from 4 local
❑ T Rabi Sankar Boards of RBI
 Local Boards of RBI
• Apart from the headquarter RBI also has 4 local boards or zonal offices in 4 metro cities of
India i.e Delhi, Mumbai, Kolkata, Chennai.
• Each local board has 4 other members excluding the director those who are recruited for 4
years.
• Apart from the local boards RBI also has 27 regional offices and 04 sub-regional offices or sub
offices.
Note: 1st Governor of RBI – Osborne Smith
1st Indian Governor of RBI - C.D Deshmukh(3rd )
Youngest Governor of RBI - Dr. Manmohan Singh (15th )
RBI Governor at the time of India’s Independence - C.D Deshmukh
RBI Governor at the time of India’s Republic - Bengal Ramarao
RBI Governor at the time of LPG(1990-92) - S.Venkataramanan
1st Governor to sign in Indian currency Note - James Taylor
Holdings of RBI :
BRBNMPL ( Bharatiya Reserve Bank Note Mudran Pvt. Ltd.)
HQ – Bengaluru
❑ It is a fully owned subsidiary of RBI.
❑ It has the capacity to print 16 billion note pieces per year.
Holdings of RBI :
DICGC (Deposit Insurance & Credit Guarantee Corporation)
HQ – Mumbai Authorised Capital – Rs. 50 cr
❑ It is a fully owned subsidiary of RBI.
❑ It gives insurance to the depositors against their bank deposits maximum
upto Rs. 5 Lakhs per bank.
❑ DICGC insurance cover is borne by the bank on behalf of the customer.
❑ All types of deposit accounts i.e. CASA & FDRD can be insured through
DICGC.
❑ DICGC does not cover insurance for deposits of foreign govt, central &
state govt, interbank deposits, etc.
❑ DICGC has the power to cancel the registration of an insured bank if it fails
to pay the premium for 3 consecutive half year period.
 Holdings of RBI
REBIT(Reserve Bank Information technology Pvt. Ltd)
❑ Estd.-2016
❑ It is also a fully owned subsidiary of RBI.
❑ It has been set up by RBI for its IT & cybersecurity needs & to ensure
cyber resilience of India banking.
❑ It also delivers & manages IT projects of RBI.
 Holdings of RBI
IFTAS(Indian Financial Technology & Allied services )
❑ Estd-2015 by IDRBT an autonomous organisation funded by RBI on the
recommendation of C. Rangrajan committee.
❑ It is a wholly owned subsidiary of RBI, mandated to design deploy &
support IT-related services to all banks & FI’s in the country as well as
RBI.
❑ It manages the INFINET, SFMS & IBCC Indian banking community cloud
w.e.f 1st April 2016.
❑ It also manages & operates the RTGS & NEFT.
❑ GIFT (Global interchange for financial Transactions) is an integrated
payment & settlement system that has been created bank transactions,
supporting batched , gross and bulk settlements
 Holdings of RBI
NCFE (National centre for financial education)
❑ It is a partly owned subsidiary of RBI
❑ HQ- Mumbai
❑ Capital –Rs.100 core
❑ Investors=RBI, SEBI and IRDAI each 30% PFRDA-10%
❑ It has been setup under the guidance of FSDC (Financial Stability &
Development Council)
❑ Its motto is to undertake massive financial education compaings
across India to help people manage money more effectively to achieve
financial well being by accessing appropriate financial products and
services.
 New Series Currency Notes :
Denominations Dimensions Colour Motif on Reverse
Side

Rs.1 63 * 97 MM Pink Green -----

Rs. 10 63 * 123 MM Choclate Brown Konark Temple (OD)

Rs. 20 63 * 129MM Greenish Yellow

Rs. 50 66 * 135 MM Flurescent Blue Hampi with Chariot

(KA)
Rs. 100 66 * 142MM Lavender Rani ki Vav (GJ)

Rs. 200 66 * 146 MM Bright Yellow Sanchi Stupa(MP

Rs. 500 66 * 150 MM Stone Grey Red fort (ND)

Rs. 2000 66 * 166 MM Magenta Mangalayan

• The year of printing on the reverse side of the fresh bank notes is
on the left side.
Damaged currency Note Exchange Rules :-
As per the RBI (note refund) amendment rules 2018 if the undivided area of the dingle largest
piece of the note for damaged is :
Note Dimension Full Refund Half Refund
Rs. 2000 88 cm2 44 cm2
Rs. 500 80 cm2 40 cm2
Rs. 200 78cm2 39 cm2
Rs. 100 (New MG Series) 75 cm2 38cm2
Rs. 100 (Old MG Series) 92cm2 46cm2
Rs. 50 (New MG Series) 72 cm2 36 cm2
Rs. 50 (Old MG Series) 86 cm2 43 cm2
Rs. 20 (Old MG series) 41 cm2 ---
Rs. 20 (Star Series) 47 cm2 ---
Rs. 10 (New MG Series) 39 cm2 ---
Rs. 10 (Old MG Series) 44 cm2 ---
Rs. 5 37 cm2 ---
Rs. 2 34 cm2 ---
Rs. 1 31 cm2 ---
 Banking ombudsman Scheme:
• Banking ombudsman is a quasi judicial authority appointed
by RBI as per section-35(A) of Banking Regulation Act-1949
in General Manager rank who will listen to the customer
complains regarding any deficiency in banking service.
• It was first started in 1995, revised in 2002 and 2006 and the
current scheme is 2017.
• Presently 22 banking ombudsman offices are there in India
New Delhi – 3
Mumbai - 2
 Steps to be followed while complaining to BO:-
❑ If a customer finds any deficiency in banking service then he will first
complain to the respective bank branch and will wait for 30 days for proper
solution.
❑ If the bank has not provided any solution or customer is not satisfied will
the solution provided by the bank within those 30 days, then he can
approach Internal ombudsman & if the customer is not getting proper
solution from IO then he can reach BO through written complaint or E-mail
or FAX etc.
✓ (Internal ombudsman is an employee of the bank appointed by the bank as
per the instructions of RBI covering at least 10 branches of the bank.)
❑ After receiving the complaint the BO will fix a date and time will call both
the parties to be present on that date and time
❑ On that day the BO will listen to both the parties i.e. bank representative
and customer and the will give his decision.
• The decision given by BO is known as “Award”
• In his award the BO can penalise the bank maximum up to Rs 1 lakh for
harassment & mental agony and Rs. 20 Lakhs for Loss.
• If either the customer or the bank is not satisfied with the decision of
BO then they an approach Appellate Authority of RBI, where one of
the deputy governors of RBI will be sitting to listen to these kind of
complaints.
• The Appellate Authority can impose any amount of penalty or we can
say there is no such limitations of penalty amount in case of Appellate
Authority
• If either the customer or the bank is not satisfied with the decision
provided by the Appellate Authority then they have to approach the
Judicial system.
 Complains which are not handled by BO:-
• If the compensation amount claimed by the customer is more
than Rs. 20 lakhs.
• If the complain is related to loan
• If the complain is already registered with the Judicial System.
 NBFC ombudsman Scheme :
• NBFC ombudsman is a quasi-Judicial authority appointed by RBI in General
Manager rank as per section -45(IA) of RBI Act-1934 who will listen to the
customer complaints regarding any deficiency in NBFC service.
• This scheme will provide a cost free and expeditious complaint redressal
mechanism relating to deficiency in the services by MBFC’s which is
effective from February 23, 2018.
• Currently there are 4 NBFC ombudsman offices are there in India i.e.
i. Chennai
ii. Kolkata
iii.Mumbai
iv.New Delhi
• NBFC ombudsman is appointed for a period of atleast 3 years.
• All the deposit taking NBFC’s are covered under this scheme as
well as the NBFC’s whose asset size is more than Rs. 1 billion /Rs
100 crore are covered under this.
• The decision given by NBFC ombudsman is known as “Award” and
compensation claim should be less than Rs. 10 lakh.
• A customer or NBFC can also challenge the Award of NBFC
ombudsman in the Appellate Authority of RBI.
• IFC (Infrastructure Finance company), IDF (Infrastructure Debt
fund Company), CIC (Core Investment companies) are exempted
from this scheme.
• A customer can complain to NBFC ombudsman only if he has not
received any solution or not satisfied with the solution provided by
the NBFC within 1 month of the written complaint.
 Digital ombudsman scheme :
• Digital ombudsman is a quasi-judicial authority appointed by RBI in
minimum GM rank as per provisions of sec-18 of payment & settlement
systems Act-2007 w.e.f 31 January 2019 to redress the customer
complains regarding any deficiency in customer services in digital
transactions conducted through non-bank entities regulated by RBI.
• Complaints relating to digital transactions conducted through bank will
continue to be handled under banking ombudsman scheme.
• Currently there are 22 digital ombudsman in India who will work in the
existing banking ombudsman office.
• Maximum award for loss is Rs. 20 lakhs & for harassment is Rs. 1 lakh.
• Customer has not to pay any money to register these complaints with
Digital ombudsman.
CMS(Complaint Management System)
It is an online web portal through which customers can lodge
complaint against banks & NBFC’s it is basically designed by
RBI to improve the customer experience by providing timely
redressal of grievances.

FBA(Financial Benchmark Administrator)

❑ FBA will be a company that will administer the benchmark set
by RBI i.e. any benchmark or guidelines set by RBI for the
banks & NBF’s are strictly followed by them or not.
❑ The minimum net worth required to start a FBA is Rs 1 crore.
RBI – I
MCQ’s
1. RBI was established on __________?

(a) April 1, 1926

(b) April 1, 1934
(a) April 1, 1935
(d) April 1, 1945
(e) None of these
2. The banking ombudsman is a senior official appointed by the ________?

(a) SEBI
(b) GOI
(c) Indian Banker’s Association
(d) NABARD
(e) RBI
3. In FBA, ‘B’ stands for what?

(a) Beneficiary
(b) Banking
(c) Board
(d) Benchmark
(e) None of these
4. NBFC Ombudsman scheme is introduced under ___of the RBI act, 1934?

(a) Section – 35(A)

(b) Section – 35(IA)
(c) Section – 25(A)
(d) Section – 45(IA)
(e) None of these
5. What is the total no. of NBFC Ombudsman offices in India?

(a) 8
(b) 4
(c) 20
(d) 12
(e) 18
6. What is the ceiling amount of insured deposits kept by one person in
different branches of a bank?

(a)Rs. 50, 000

(b) Rs.1, 00, 000
(c) Rs. 2, 00, 000
(d) Rs.5, 00, 000
(e) None of these
7. Which of the following is not a function of Reserve Bank of India?
(a)Controller of credit
(b) Note Issue
(c) Banker’s Bank
(d) Acceptance of deposit from public
(e) All of these
8. Any person can file a complaint before the Banking ombudsman, if the reply
is not received from the bank within a period of _______?

(a) 15 days
(b) 30 days
(c) 45 days
(d) 60 days
(e) 90 days
9. Which of the following is the dimension of new Rs. 50 rupees note?

(a) 157 × 73 mm
(b) 66 × 150 mm
(c) 66 × 166 mm
(d) 66 × 135 mm
(e) None of these
10. The banking ombudsman can reject a complaint if compensation sought
from the ombudsman is beyond ________?

(a) Rs. 1 lakh

(b) Rs. 2 lakh
(c) Rs. 5 lakh
(d) Rs. 10 lakh
(e) Rs. 20 lakh
11. Who among the following served as both the Governor of RBI & Finance
Minister of India?
(a) C.D. Deshmukh & Raghuram Rajan
(b) Raghuram Rajan & Manmohan Singh
(c) Manmohan Singh & Y.V. Reddy
(d) C.D. Deshmukh & Manmohan Singh
(e) None of these
12. Who among the following was the governor of RBI when India became
Republic?

(a) James Taylor

(b) C.D. Deshmukh
(c) Y. V. Reddy
(d) K.G. Ambegaon Kar
(e) Benegal Rama Rao
13. The maximum denomination of currency note and coin can be the
following?

(a)1000 and 100

(b) 1000 and 1000
(c) 10000 and 1000
(d) 5000 and 100
(e) None of these
14. When the Reserve Bank of India (RBI) is the lender of last resort, what does
it mean?

(a)RBI advances money to public whenever there is any emergency

(b)Commercial banks give fund to the RBI
(c)RBI advances necessary credit against eligible securities to the banks
(d) All of the above
(e) None of the above
15. How many printing presses does BRBNMPL manages?

(a) 2
(b) 4
(c) 6
(d) 3
(e) None of these
16. Which of the following features on the reverse of Rs. 10 note?

(a) Mangalyaan
(b) Konark Temple
(c) Red Fort
(d) Parliament of India
(e) Hampi with Chariot
17. Year of printing of the note present on the ____side of the bank note
(Reverse side)?

(a) Bottom
(b) Right
(c) Left
(d) All of these
(e) None of these
18. Banking Ombudsman Scheme is applicable to the business of_______?

a) All scheduled commercial banks excluding RRBs

b) All scheduled commercial banks including RRBs
c) Only Public Sector Banks
d) Only Private Sector Banks
e) All scheduled banks except private banks
19. Banking ombudsman scheme is introduced under ___of the banking
regulation act, 1949 by RBI effect from 1995?

A) Section – 35A)
B) Section – 45A)
C) Section – 25A)
D) Section – 15A)
E) None of these
20. How many banking ombudsman offices are there in New Delhi?

A) Three
B) Two
C) Four
D) Five
E) None of these
21. The banking ombudsman may award compensation not exceeding ___to
the compliant only in the case of complaints relating to credit card operations
for mental agony & harassment?

A) Rs. 1 lakh
B) Rs. 20 lakhs
C) Rs. 5 lakhs
D) Rs. 10 lakhs
E) None of these
22. What is the cost involved in filing complaints with the banking
ombudsman?

A) Rs. 10
B) Rs. 50
C) Rs. 100
D) Rs. 150
E) Free of Cost
23. In CMS, ‘C’ stands for what?

A) Change
B) Currency
C) Customer
D) Complaint
E) None of these
24. Each of the Local Board member of the Reserve Bank of India appointed
for how many years?

A) 8 years
B) 11 years
C) 4 years
D) 5 years
E) None of these
25. Which of the following is/ are not the subsidiaries of RBI?

(a) DIGCGC
(b) ReBIT
(c) NABARD
(d) BRBNMPL
(e) IFTAS
THANK YOU ALL ☺