Assignment No 1 Role and Function of RBI Introduction:- Reserve bank of India (RBI) is nation’s central bank. RBI began operation since 1935, and stood at the centre of India’s financial system, with a fundamental commitment to maintaining the nation’s monetary and financial stability. From ensuring stability of interest and exchange rates to providing liquidity and an adequate supply of currency and credit for the real sector; from ensuring bank penetration and safety of depositors’ funds to promoting and developing financial institutions and markets, the Reserve Bank plays a crucial role in the economy.
Our decisions touch the daily life of all Indians and help chart the country’s current and future economic and financial course. Over the years, our specific roles and functions have evolved. However, there have been certain constants, such as the integrity and professionalism with which the Reserve Bank discharges its mandate. Organization Structure:- Central Board of Directors by the Numbers Official Directors 1 Governor 4 Deputy Governors, at a maximum Non-Official Directors directors—nominated by the Central Government to represent each local board 10 directors nominated by the Central Government with expertise in various segments of the economy. 1 representative of the Central Government 6 meetings—at a minimum—each year 1 meeting—at a minimum—each quarter Below diagram shows the current structure of the Reserve Bank of India (RBI). Central office departments:- Over the last 75 years, as the functions of the Reserve Bank kept evolving, the work areas were allocated among various departments.
At times, the changing role of the Reserve Bank necessitated closing down of some departments and creation of new departments. Currently, the Bank’s Central Office, located at Mumbai, has twenty-seven departments. These departments frame policies in their respective work areas. They are headed by senior officers in the rank of Chief General Manager. Markets Department of External Investments and Operations