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Reserve of Bank India Services Board

By: EconomyWatch Date: 30 June 2010

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The ReserveBank of India was established on April 1, 1935 in accordance with theprovisions of the Reserve Bank Of India Act, 1934.The Central Office of the Reserve Bank has been in Mumbaisince inception. The Central Office is where the Governor sits and is wherepolicies are formulated.Though originally privately owned, since nationalization in1949, the Reserve Bank is fully owned by the Government of India.

Preamble

The Preamble of the Reserve Bank of India describes thebasic functions of the Reserve Bank as:

"...to regulate the issue of BankNotes and keeping of reserves with a view to securing monetary stability inIndia and generally to operate the currency and credit system of the country toits advantage."

Central Board

The Reserve Bank's affairs are governed by a central boardof directors. The board is appointed by the Government of India in keeping withthe 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 fieldsand one government Official
Others: four Directors - one each from four localboards
Functions: General superintendence and direction of theBank's affairs

Local Boards

*One each for the fourregions of the country in Mumbai, Calcutta, Chennai and New Delhi

*Membership:

*Consistof five members each

*Appointedby the Central Government

*Fora term of four years

Functions: To advise the Central Board on local matters andto represent territorial and economic interests of local cooperative andindigenous banks, to perform such other functions as delegated by Central Boardfrom time to time.