Introduction

The Reserve Bank of India was established in the year 1935 according to the Reserve Bank of
India Act, 1934. It is the central Bank of India which has various roles. It performs important
monetary functions. From issuing currency note to maintaining monetary stability in the country
is one of the reserve bank’s roles.

The Reserve Bank of India was a private share holder’s company initially, which later was
nationalized in 1949. Affairs of RBI are governed by The Central Board of Directors which is
appointed by the Government of India. Since, are becoming the central bank of India, the
Reserve Bank of India had played an important role in the economic development and monetary
stability in the country.

Historic Details

The origins of the Reserve Bank of India can be traced to 1926 when the Royal Commission on
Indian Currency and Finance – also known as the Hilton-Young Commission – recommended the
creation of a central bank for India to separate the control of currency and credit from the
Government and to augment banking facilities throughout the country. The Reserve Bank
of India Act of 1934 established the Reserve Bank and set in motion a series of actions culminating
in the start of operations in 1935. Since then, the Reserve Bank’s role and functions have undergone
numerous changes, as the nature of the Indian economy and financial sector changed.

There were several causes for the creation of a central bank. Though the rupee was the common
currency, there were several species of rupee coins of different values in circulation. The authorities,
however, endeavored to evolve a standard coin. For many years, the Sicca of Murshidabad was, in
theory, the standard coin, and the rates of exchange of the various rupees in terms of the Sicca rupee
varied, the discount being called the batta.

The Government received enquiries from the Collectors as to the batta they should charge on the
different species they received from zamindars and farmers. The proposed bank was to fix the
value, in Sicca rupees, of the bills it had to issue in return for the money received from the
Collectors, on the basis of the same batta. Thus, the bank was expected to assist in stabilizing inland
exchange and in enforcing the Sicca coin as the standard coin of the Provinces.

Origin & History of the Reserve Bank Of India

1926: The Royal Commission on Indian Currency and Finance recommended the creation of a

central bank for India.

1927: A bill to give effect to the above recommendation was introduced in the Legislative
Assembly. But it was later withdrawn due to lack of agreement among various sections of people.

1933: The White Paper on Indian Constitutional Reforms recommended the creation of a Reserve
Bank. A fresh bill was introduced in the Legislative Assembly.

1934: The Bill was passed and received the Governor General’s assent

1935: The Reserve Bank commenced operations as India’s central bank on April 1 as a private
shareholders’ bank with a paid up capital of rupees five crores (rupees fifty million).

1942: The Reserve Bank ceased to be the currency issuing authority of Burma (now Myanmar).

1947: The Reserve Bank stopped acting as banker to the Government of Burma.

1948: The Reserve Bank stopped rendering central banking services to Pakistan.

1949: The Government of India nationalized the Reserve Bank under the Reserve Bank (Transfer of
Public Ownership) Act, 1948.

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.
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 Kolkata but was permanently moved
to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.

Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the
Government of India.

Preamble
The 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
monetary stability in India and generally to operate the currency and credit system of the
country to its advantage; to have a modern monetary policy framework to meet the
challenge of an increasingly complex economy, to maintain price stability while keeping in
mind the objective of growth."

Central Board
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:

1 Official Directors
 Full-time : Governor and not more than four Deputy Governors

2 Non-Official Directors
 Nominated by Government: ten Directors from various fields and two government Official
 Others: four Directors - one each from four local boards

Functions :
General superintendence and direction of the Bank's affairs.
The Preamble to the Reserve Bank of India Act, 1934 (the Act), under which it was constituted,
specifies its objective as “to regulate the issue of Bank notes and the keeping of reserves with a view
to securing monetary stability in India
and generally to operate the currency and credit system of the country to its advantage”.

The functions of the Reserve Bank today can be categorized as follows:

 Monetary policy

The Central Bank, the RBI formulates, implements and monitors the monetary policy.  In fact, the
monetary policy and the fiscal policy are the two tools of macroeconomic policy. The monetary
policy mainly ensures that there is price stability coupled with economic growth. The key areas that
these policy targets are the interest rates, bank credits, and money supply.

Some of the objectives of the monetary policy include maintenance of price stability, ensuring
adequate flow of credit to the productive sectors, expansion of credit facility, equitable distribution
of credit, promotion of fixed deposits etc. The RBI also uses some tools to regulate the monetary
policy. These include Open Market operations, Bank Rate, Cash Reserve Ratio (CRR), Statutory
Liquidity Ratio (SLR), Repo rate, Reverse Repo rate etc. There are also some Qualitative
instruments that the RBI uses which impact the money supply indirectly.

A few key terms explained

 Bank Rate – It is the interest rate at which RBI gives loans to the banks.
 Cash Reserve Ratio – It refers to the minimum funds that banks have to keep with the
RBI.
 Statutory Liquidity Ratio- It is the fraction of the net time and demand liabilities of the
banks in the form of liquid assets that banks have to maintain.
 Repo rate – It is the interest rate at which RBI gives loans to commercial banks.
 Reverse Repo Rate – The interest rate at which RBI borrows from commercial banks is
called the reverse repo rate.
 Regulation and supervision of the banking and non-banking financial institutions,
including credit information companies

 Regulation of money, forex and government securities markets as also certain financial
derivatives

 Debt and cash management for Central and State Governments.

 Management of foreign exchange reserves.

 Foreign exchange management—current and capital account management

 Banker to banks.

 Banker to the Central and State Governments.

 Oversight of the payment and settlement systems.

 Currency management.

 Developmental role.

 Research and statistics.

While rising global integration has its advantages in terms of expanding the scope and scale of
growth of the Indian economy, it also exposes India to global shocks. Hence, maintaining financial
stability became an important mandate for the Reserve Bank.

Names of the Central Board of Directors of the Reserve Bank of India

* Directors nominated under Section 8 (1) (b) of the RBI Act, 1934.

^ Directors nominated under Section 8 (1) (c) of the RBI Act, 1934.

# Directors nominated under Section 8 (1) (d) of the RBI Act, 1934 (as amended).

Dated: June 21, 2020

1. Shri Shaktikanta Das (Governor) ^9. Shri Natarajan Chandrasekaran

 2. Shri B.P. Kanungo (Deputy Governor) ^10. Dr. Ashok Gulati
3. Shri Mahesh Kumar Jain (Deputy Governor) ^11. Shri Manish Sabharwal
4. Dr. M. D. Patra (Deputy Governor) ^12. Shri Satish Kashinath Marathe
*5. Dr. Prasanna Kumar Mohanty ^13. Shri Swaminathan Gurumurthy
*6. Shri Dilip S. Shanghvi #14. Shri Debasish Panda
*7. Ms. Revathy Iyer #15. Shri Tarun Bajaj
*8. Prof. Sachin Chaturvedi

Local Boards

 One each for the four regions of the country in Mumbai, Kolkata, Chennai and New
Delhi
 Membership:
 consist of five members each
 appointed by the Central Government
 for a term of four years

Functions:

To advise the Central Board on local matters and to represent territorial and economic interests
of local cooperative and indigenous banks; to perform such other functions as delegated by
Central Board from time to time.

Board for Financial Supervision

The Reserve Bank of India performs the supervisory function under the guidance of the Board
for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee
of the Central Board of Directors of the Reserve Bank of India under the Reserve Bank of India
(Board for Financial Supervision) Regulations, 1994.

Objective

The primary objective of BFS is to undertake consolidated supervision of the financial sector
comprising Scheduled Commercial and Co-operative Banks, All India Financial Institutions,
Local Area Banks, Small Finance Banks, Payments Banks, Credit Information Companies, Non-
Banking Finance Companies and Primary Dealers.

Constitution

The Board is constituted by co-opting four Directors from the Central Board as Members and is
chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members.
One Deputy Governor, traditionally, the Deputy Governor in charge of supervision, is nominated
as the Vice-Chairman of the Board.

In April 2018, a Sub-committee of the Board for Financial Supervision was constituted, under
Para 11 & 12 of the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994.
The Sub-committee performs the functions and exercises the powers of supervision and
inspection under the Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949, in
relation to Payments Banks, Small Finance Banks, Local Area Banks, small Foreign Banks,
select scheduled Urban Co-operative Banks, select Non-Banking Financial Companies and
Credit Information Companies. The Sub-committee is chaired by the Deputy Governor in charge
of supervision and includes the three Deputy Governors and two Directors of the Central Board
as Members.

BFS Meetings

The Board is required to meet normally once every month. It deliberates on inspection reports,
periodic reviews related to banking and non-banking sectors and policy matters arising out of or
having relevance to the supervisory functions of the Reserve Bank.

The BFS oversees the functioning of Department of Banking Supervision (DBS), Department of
Non-Banking Supervision (DNBS) and Department of Co-operative Bank Supervision (DCBS)
and gives directions on regulatory and supervisory issues.

Functions

Some of the initiatives taken by the BFS include:

 i. Fine-tuning the supervisory processes adopted by the Bank for regulated entities;
ii. Introduction of off-site surveillance system to complement the on-site supervision of
regulated entities;
iii. Strengthening the statutory audit processes of banks and enlarging the role of auditors in
the supervisory process;
iv. Strengthening the internal defences within supervised institutions such as corporate
governance, internal control and audit functions, management information and risk control
systems, review of housekeeping in banks;
v. Introduction of supervisory rating system for banks and financial institutions;
vi. Supervision of overseas operations of Indian banks, consolidated supervision of banks;
vii. Technical assistance programme for cooperative banks;
viii. Introduction of scheme of Prompt Corrective Action Framework for weak banks;
ix. Guidance regarding fraud risk management framework in banks;
x. Introduction of risk based supervision of banks;
xi. Introduction of an enforcement framework in respect of banks;
xii. Establishment of a credit registry in respect of large borrowers of supervised institutions;
and
xiii. Setting up a subsidiary of RBI to take care of the IT requirements, including the cyber
security needs of the Reserve Bank and its regulated entities, etc.

Legal Framework

I. Acts administered by Reserve Bank of India

 Reserve Bank of India Act, 1934

 Public Debt Act, 1944/Government Securities Act, 2006
 Government Securities Regulations, 2007
 Banking Regulation Act, 1949
 Foreign Exchange Management Act, 1999
 Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (Chapter II)
 Credit Information Companies(Regulation) Act, 2005
 Payment and Settlement Systems Act, 2007
o Payment and Settlement Systems Regulations, 2008 and Amended up to 2011
and BPSS Regulations, 2008
o The Payment and Settlement Systems (Amendment) Act, 2015 - No. 18 of
2015
 Factoring Regulation Act, 2011

II. Other relevant Acts

 Negotiable Instruments Act, 1881

 Bankers' Books Evidence Act, 1891
 State Bank of India Act, 1955
 Companies Act, 1956/ Companies Act, 2013
 Securities Contract (Regulation) Act, 1956
 State Bank of India Subsidiary Banks) Act, 1959
 Deposit Insurance and Credit Guarantee Corporation Act, 1961
 Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
 Regional Rural Banks Act, 1976
 Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
 National Bank for Agriculture and Rural Development Act, 1981
 National Housing Bank Act, 1987
 Recovery of Debts Due to Banks and Financial Institutions Act, 1993
 Competition Act, 2002
 Indian Coinage Act, 2011 : Governs currency and coins
 Banking Secrecy Act
 The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
 The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993

Main Functions

Monetary Authority:
 Formulates, implements and monitors the monetary policy.
 Objective: maintaining price stability while keeping in mind the objective of growth.

Regulator and supervisor of the financial system:

 Prescribes broad parameters of banking operations within which the country's banking
and financial system functions.
 Objective: maintain public confidence in the system, protect depositors' interest and
provide cost-effective banking services to the public.

Manager of Foreign Exchange

 Manages the Foreign Exchange Management Act, 1999.

 Objective: to facilitate external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.

Issuer of currency:

 Issues and exchanges or destroys currency and coins not fit for circulation.
 Objective: to give the public adequate quantity of supplies of currency notes and coins
and in good quality.

Developmental role

 Performs a wide range of promotional functions to support national objectives.

Regulator and Supervisor of Payment and Settlement Systems:

 Introduces and upgrades safe and efficient modes of payment systems in the country to
meet the requirements of the public at large.
 Objective: maintain public confidence in payment and settlement system

Related Functions
 Banker to the Government: performs merchant banking function for the central and the
state governments; also acts as their banker.
 Banker to banks: maintains banking accounts of all scheduled banks.

Offices

 Has 27 regional offices, most of them in state capitals and 04 Sub-offices.

Training Establishments

Has six training establishments

 Three, namely, RBI Academy, College of Agricultural Banking and Reserve Bank of
India Staff College are part of the Reserve Bank.
 Others are autonomous, such as, National Institute for Bank Management, Indira Gandhi
Institute for Development Research (IGIDR), Institute for Development and Research in
Banking Technology (IDRBT)

Powers under Reserve Bank of India Act, 1934

RBI Act 1934 is the Act by which RBI was formed, through this act only numerous powers are
given to it just to perform its duties and functions such are

Section 18 talks about power of RBI of direct discount.

Section 45B talks about power of bank to collect credit information.

Section 45C talks about power to call for returns containing credit information.

Section 45JA talks about power of bank to determine policy and issue directions.

Section 45k talks about power of bank to collect information from non-banking institutions as to
deposits and to give directions.
Section 45L talks about power of bank to call for information from financial institutions and to
give directions.

Section 45MB talks about power of bank to prohibit acceptance of deposit and alienation of
assets.

Section 45MC talks about power of bank to file winding up petition.

Section 45NC talks about power of bank to exempt.

Section 45T talks about power to issue warrants.

Section 54AA talks about power of bank to depute its employees to other institutions.

Section 58G talks about power of bank to impose fine.

Powers of RBI under Banking Regulation Act, 1949

Banking Regulation Act, 1949 also provide powers of Reserve Bank of India such as:

Section 10bb provides power to reserve bank to appoint chairman of the board of directors
appointed on a whole time basis or managing director of any banking company.

Section 21 gives power to reserve bank to control advances by banking companies.

Section 28 gives power to reserve bank to publish any information obtained.

Section 36 gives numerous powers to RBI-

 It may caution or prohibit any banking company regarding any transaction or class of
transaction.
 On a request, in case of amalgamation of banking companies it may assist as
intermediary or otherwise.
 Give assistance by way of advancement of loans.
 In the interest of a public policy or banking company, may call meeting of its directors.
  May depute its one or more officer to be heard the meeting of directors of banking
company.
 May require the board of directors of the banking company or so to give in writing to
officer specified, communication related to meeting.
 Appoint officer to observe the manner in which the affairs are being conducted of
banking company.
 May require by order to make changes in management within specified time.
 RBI shall make a annual report to central government regarding progress of banking and
suggestions, if any.
 May appoint staff to ensure its efficient performance.

Section 36aa gives power to RBI for removal of managerial and other persons from office.

Section 36ab gives power to RBI to appoint additional directors a banking company.

Section 45 gives power to RBI to apply to central government for suspension of business by a
company and for preparing scheme of reconstitution of amalgamation.

Section 45q talks about the power of RBI on direction of High Court or central government to
inspect books of account of a company being wound up.

Section 45r gives power to high court to call for returns and other information.

Section 47a gives power to RBI to impose penalty in case of default by any banking company.

Mission of RBI

To promote the economic and financial well-being of the people of India in terms of price and
financial stability; fair and universal access to financial services; and a robust, dynamic and
responsive financial intermediation infrastructure.

CORE PURPOSE

To foster monetary and financial stability conducive to sustainable economic growth and to
ensure the development of an efficient and inclusive financial system.
The core purpose reflects the Reserve Bank of India’s commitment to the
Nation

 To foster confidence in the internal and external value of the Rupee and contribute to
macro-economic stability.
 To regulate markets and institutions under its ambit, to ensure financial system stability
and consumer protection.
 To promote the integrity, efficiency, inclusiveness and competitiveness of the financial
and payment systems.
 To ensure efficient management of currency as well as banking services to the
Government and banks.
 To support balanced, equitable and sustainable economic development of the country.

Values

The Reserve Bank of India commits itself to the following shared values that guide
organisational decisions and employee actions in pursuit of the Bank’s core purpose:

Public Interest

 The Reserve Bank of India, in its actions and policies, seeks to promote public interest
and the common good.

Integrity and Independence

 The Reserve Bank of India seeks to maintain the highest standards of integrity and
independence through openness, trust and accountability.

Responsiveness and Innovation

 The Reserve Bank of India seeks to be a dynamic organisation responsive to public

needs. The Bank aspires to foster innovation and a spirit of enquiry.

Diversity and Inclusiveness

  The Reserve Bank of India cherishes and supports diversity and inclusiveness.

Introspect and pursuit of Excellence

 The Reserve Bank of India is committed to self-appraisal, introspection and professional

excellence.

RBI as an Institution: VISION STATEMENTS

STRATEGIES FOR VISION

Vision 1-

Excellence in performance of statutory and other functions:

 Furthering the monetary policy framework and operating procedure; enriching statutory
publications; and striving for a ‘state-of-the-art’ data-intensive policy research
framework.
 Creating a resilient financial intermediation ecosystem; refining the regulatory,
supervisory and financial inclusion framework for its robust and strong sustenance.
 Strengthening the resilience, integrity and efficiency of the financial markets
infrastructure with a focus on deepening digital payments.
 Enhancing the efficiency and automation of the ‘Banker to Government’ function.
 Broadening and widening debt markets and robust execution of the reserve management
function.
 Revamping the currency management system through enhanced efficiency in
procurement and distribution, ensuring high quality currency notes and coins.

Vision 2-

Strengthened trust of Citizens and other Institutions in the RBI:

 Strengthening the external communication framework to convey the roles and functions
of RBI.
  Creating an enabling environment to develop consumer-friendly financial services
providers.
 Ensuring sound and comprehensive internal and external RBI policies.
 Fortifying the trust of citizens in regulatory enforcement.
 Adopting a ‘less paper’ and virtual workflow for external stakeholders.

Vision 3-

Enhanced relevance and significance in National and Global roles:

 Intensifying presence in national forums to improve domestic financial infrastructure.

 Enhancing RBI’s brand equity in other jurisdictions.
 Amplifying international financial engagement by articulating RBI’s stance and views on
major global economic and regulatory policy issues, taking account of the specific Indian
characteristics.
 Strengthening existing positions in supranational institutions through effective
contributions to global policy making.

Vision 4-

Transparent, accountable and ethics driven internal governance:

 Reinforcing internal governance and code of ethics.

 Upgrading internal controls through robust risk management, budgeting, auditing and
compliance functions by adopting international best practices.
 Adopting ‘less paper’ and virtual internal workflows.

Vision 5-

Best-in-class and environment friendly digital as well as physical infrastructure:

 Automating processes, achieving the integration of information and ensuring cyber

security through a robust Information Technology (IT) system, based on the best
environment-friendly practices.
  Integrating architectural excellence and aesthetic appeal with green ratings in RBI
premises while ensuring the highest level of cleanliness and physical security.

Vision 6-

Innovative, dynamic and skilled human resources:

 Reviewing and reframing the organisational structure to effectively implement all

strategies.
 Enhancing the skills of human resources for current and emerging challenges and
creating a suitable training framework.
 Establishing an objective performance assessment system for efficient human resources
management.
 Using technology and data analytics to promote research-based decision making by the
workforce.

Few notable quarries asked to RBI:

1. How does the Reserve Bank distribute currency to the people?

The Reserve Bank presently manages the currency operations through its 19 Issue Offices
located at Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai,
Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New
Delhi, Patna, Thiruvananthapuram and a currency chest at its Kochi office. Further, a wide
network of currency chests maintained and managed by scheduled banks are part of currency
management architecture. The Issue Offices receive fresh banknotes from the currency printing
presses which in turn send fresh banknote remittances to the currency chests. Direct remittances
by the presses to the currency chests also happens.

The Reserve Bank offices located at Hyderabad, Kolkata, Mumbai and New Delhi (Mint Linked
Offices) receive coins from the mints. These offices then send the coins to the other offices of the
Reserve Bank who in turn send the same to Currency Chests and Small Coin Depots. The
banknotes and rupee coins are stocked at the currency chests and small coins at the small coin
depots. The bank branches receive the banknotes and coins from the Currency Chests and Small
Coin Depots for further distribution among the public.

2.Who decides on the volume and value of banknotes to be printed and on what basis?

The volume and value of banknotes to be printed in a year depends on various factors such as

(i) the expected increase in Notes in Circulation (NIC) to meet the growing needs
of the public and

(ii) the need for replacing soiled/mutilated notes so as to ensure that only good
quality notes are in circulation. The expected increase in NIC is estimated
using statistical models which consider macro-economic factors such as
expected growth in GDP, inflation, interest rates, growth in non-cash modes
of payment etc. The replacement requirement depends on the volume of notes
already in circulation and the average life of banknotes. The Reserve Bank
estimates the volume and value of notes to be printed in a year based on the
above factors as well as feedback received from its own Regional Offices and
banks regarding expected demand for cash and finalises the same in
consultation with the Government of India and the printing presses.

3.Are the banknotes issued by RBI backed by any assets such as gold?

All banknotes issued by RBI are backed by assets such as gold, Government Securities and
Foreign Currency Assets, as defined in Section 33 of RBI Act, 1934.

4.What happens when the banknotes return to RBI from circulation?

Banknotes returned from circulation are received at the Issue Offices of the Reserve Bank of
India. The Reserve Bank of India, inter alia, uses highly sophisticated Currency Verification &
Processing Systems (CVPS) machines and Shredding and Briquetting Systems (SBS) machines
to verify these notes for genuineness, arithmetical accuracy and segregation of notes into fit for
reissue and destruction of soiled (unfit) notes."
5.What are the legal provisions relating to printing and circulation of forged banknotes?

Counterfeiting banknotes/using as genuine, forged or counterfeit banknotes/possession of forged

or counterfeit banknote/making or possessing instruments or materials for forging or
counterfeiting banknotes/making or using documents resembling banknotes are offences under
Sections 489A to 489E of the Indian Penal Code and are punishable in the Courts of Law by fine
or imprisonment ranging from seven years to life imprisonment or both, depending on the
offence.

The Government of India has framed Investigation of High Quality Counterfeit Indian Currency
Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third
Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of
production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought
under the ambit of UAPA, 1967.

6.Does possession of a forged note attract the punishment of fine or imprisonment?

Mere possession of a forged note does not attract punishment. Possession of any forged or
counterfeit banknotes, knowing or having reason to believe the same to be forged or counterfeit
and intending to use the same as genuine or that it may be used as genuine, is punishable under
Section 489C of Indian Penal Code, 1860.

7.Do I have a right to appeal?

Under the Right to Information Act, 2005 you have the right to appeal if you are not satisfied
with the information provided by the Reserve Bank or its decision not to provide the information
requested.

RIGHT TO INFORMATION ACT

The Government of India has enacted the Right to Information Act, 2005
(http://www.persmin.nic.in) which has come into effect from October 12, 2005. The Right to
Information under this Act is meant to give to the citizens of India access to information under
control of public authorities to promote transparency and accountability in these organisations.
The Act, under Sections 8 and 9, provides for certain categories of information to be exempt
from disclosure. The Act also provides for appointment of a Chief Public Information Officer to
deal with requests for information.

RBI’s Obligation under the Act

The Reserve Bank of India is a public authority as defined in the Right to Information Act, 2005.
As such, the Reserve Bank of India is obliged to provide information to members of public.

Designation of Transparency Officer under the Right to Information Act, 2005 in the
Reserve Bank of India.

In pursuance of the Central Information Commission’s directive dated November 15, 2010
issued to all Public Authorities under the powers vested in the Central Information Commission
under Section 19 (8) (a) of The Right to Information Act, 2005.

Seeking Information from RBI

The Reserve Bank of India has an established communication policy. Under this, the Reserve
Bank of India regularly releases information and data on Indian economy, banking and finance.
It releases the information and data at regular periodicity – daily, weekly, monthly, quarterly, six
monthly and annually. In addition, it also releases information, as and when required, through
occasional publications, such as, studies and reports.

The Reserve Bank also places in public domain its instructions relating to banking, finance,
foreign exchange and other related subjects. Further, the Reserve Bank also disseminates
information, especially of general interest, through daily press releases.

The information and data routinely released by the Reserve Bank are available on its website
(www.rbi.org.in)

The details of information that is already available from the Reserve Bank of India are:

Policy Statements of the Governor, RBI

The policy Statements of the Governor, Reserve Bank of India provide a framework for the
monetary, structural and prudential measures that are taken from time to time against the
background of an assessment of macroeconomic and monetary developments. Up to 2004, the
Annual Policy Statement was announced in April/May every year and was followed by a Mid-
Term Review in October/November. In order to provide a distinctive focus on monetary policy
and developmental policies, the format of presentation of the policy Statement was modified in
the Annual Policy Statement of April 2005. The Statement now consists of two parts: Part I.
Annual Statement on Monetary Policy for the Year; and Part II Annual Statement on
Developmental and Regulatory Policies for the Year. There is a Mid-term Review of the Annual
Policy Statement in October, as in the past, covering both Part I and Part II of the Statement. In
addition, a First Quarter Review of Part I of the Statement in July and a Third Quarter Review in
January is scheduled every year. The quarterly reviews of monetary policy provide the
opportunity for structured communication with markets on a more frequent basis while retaining
the flexibility to take specific measures as the evolving circumstances warrant.

Conclusion

Reserve Bank of India is the central bank of India which plays important role for the banking
industry, development and growth of economy. From formulating policies, issuing currency to
monetary stability in and maintenance of such monetary stability is the duty of RBI. It plays the
parent role to the commercial banks and other banking institutions.

Bibliography

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https://www.rbi.org.in/Scripts/AboutUsDisplay.aspx#EP

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=136

https://www.rbi.org.in/Scripts/Righttoinfoact.aspx
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https://www.toppr.com/guides/general-awareness/rbi/structure-monetary-policies-of-the-rbi/

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