The Apex Bank

Establishment
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.  The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.  Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

Functions of the Reserve Bank
The functions of the Reserve Bank today can be categorized as follows:  Monetary Authority  Issuer of Currency  Banker and Debt Manager to Government  Banker to Banks  Regulator of the Banking System  Manager of Foreign Exchange  Regulator and Supervisor of the Payment and Settlement Systems  Developmental Role

Instruments
Direct Instruments  Cash Reserve Ratio (CRR)  Statutory Liquidity Ratio (SLR  Refinance facilities Indirect Instruments  Liquidity Adjustment Facility (LAF  Open Market Operations (OMO)  Market Stabilisation Scheme  Repo/reverse repo rate  Bank rate

Management

 

The 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. Appointed/nominated for a period of four years Constitution:
 Official Directors
○ Full-time : Governor and not more than four Deputy

Governors
 Non-Official Directors
○ Nominated by Government: ten Directors from various

fields and one government Official ○ Others: four Directors - one each from four local boards

Current Governor : Dr. D Subbarao

Organisation Structure
Central Board of Directors

Governor Deputy Governors Chief General Manager General Managers

Managers
Support Staff

Departments
RBI
Financial Markets Department Human Resources Development Department Internal Debt Management Department Department of Expenditure and Budgetary Control Department of Banking Operations and Development Department of Statistics and Information Management Department of Economic Analysis and Policy Department of Administration and Personnel Management Foreign Exchange Department Department of Government and Bank Accounts Urban Banks Department Department of Currency Management Legal Department Customer Service Department Inspection DepartmentInspection Department Department of Communication Department of Banking Supervision Department of Information Technology Department of External Investments and Operations

Monetary Policy Department

Inspection Department Department of NonBanking Supervision

Department of Payment and Settlement Systems

Rural Planning and Credit Department

RESERVE BANK OF INDIA BALANCE SHEET AS AT 30th JUNE 2011 ISSUE DEPARTMENT (` Thousands) 2009-10 LIABILITIES Notes held in the 32,61,51 842008,36, 40 Banking Department Notes in Circulation 15,14,26 969261,23, 85 48577,21,5 2 – 792300,92, 96 842040,97, 91 Total Notes Issued 969276,38, 11 840878,14, 48 116,40,43 1046,43,00 2010-11 2009-10 ASSETS Gold Coin and Bullion: (a) Held in India (b) Held outside India Foreign Securities Total Rupee Coin Government of India Rupee Securities Internal Bills of Exchange and other 57806,52,5 7 2010-11

910165,61, 91 967972,14, 48 257,80,63 1046,43,00


842040,97, 91 Total Liabilities 969276,38, 11 842040,97, 91

Commercial Paper
Total Assets


969276,38, 11

RBI: Actions in Times of Crisis
The Reserve Bank’s willingness to use conventional and unconventional measures help buffer the nation from severe crisis. Here are some examples of our responses during the 2008-9 global financial crisis:  Carefully considered and calibrated reduction of interest rates until situation has stabilized  Loosened restrictions on access to foreign currency  Creation of a rupee-dollar swap facility to manage short-term funding requirements  Establishment of a refinancing window and special-purpose vehicle for non-banking financial companies  Expansion of funding sources for umbrella financial institutions to keep credit flowing to small businesses, housing and export businesses

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