Management and Administration of Reserve Bank of India


The Reserve Bank of India is managed by well-structured administrative machinery. The organization structure of the RBI can be easily understood with the help of the follow­ing chart:

The management of the RBI is entrusted to the central and local boards. The Central in 1927 Board consists of the following members:

We can observe from the table that all members of Central Board are appointed by the Central Government. The Governor and the Deputy Governors are appointed as execu­tives in the bank and by virtue of their position in the bank; they become members of the Central Board.


The other directors of Central Board are appointed for a four year term (excepting the official of Government of India) by Government under RBI Act, 1934.

The present Governor of RBI is Dr. Bimal Jalan. The Governor is assisted in the perfor­mance of his duties by the Deputy Governors and the Executive Directors. The Governor and Deputy Governors hold office as per their terms of appointment and eligible for reap­pointment.

The executive directors are whole time officials of the bank, with salaries. They are however not members of Central Board. Appointment of members of Central Board are so made that two directors retire every year. A retiring director is eligible for reappoint­ment.

The local Boards consist of 5 members appointed by the Central Government. The appointment will be made so as to secure adequate representation of regional and eco­nomic interest of the areas concerned. The local Board will have a Chairman elected from amongst the members of the local Board.


The members of the local Board hold office for a period of 4 years and are eligible for reappointment. The duties of the local Board are to advise the Central Board in respect of matter referred to it and perform such functions as

The management of the RBI is entrusted to the central and local boards. The Central in 1927 Board consists of the following members:

May be delegated to it by the Central board from time to time. The powers of the local Board are very limited.

No person may be a director if:


(a) He is a salaried officer of the Government

(b) If he is insolvent, of unsound mind or

(c) If he is an officer or employee of any bank or a director of a bank other than co­operative bank. The Governor or Deputy Governor or a Director may be removed from office by the Central Government.

A Director ceases to hold office if he is absent for 3 consecutive meetings of the Board. (This provision does not apply in the case of the Governor, Deputy Governor or the official Director).


A member of the Parliament or of a State Legislature cannot be a Director unless he ceases to be member of the Parliament or State Legislative within two months from the date of being appointed as director of the bank. At least six meetings of the Cen­tral Board must be held every year.

Any three directors can require the Governor to convene a meeting of the Board. The Governor and, in his absence, the Deputy Governor presides over such meetings.

The organizational structure of RBI is divided into two parts, the Internal Organisation and the External Organisation. The internal structure includes the central office of the bank. The central office consists of various departments for the efficient discharge of its functions.

The external structure includes its local offices, situated at important metropolitan cities of India. In other places where the RBI does not have its offices, the State Bank of India and its subsidiaries act as its agents.


Departments of RBI

The various departments of RBI are given below:

1. Department of Information Technology

2. Department of Economic Analysis and Policy

3. Department of Statistical Analysis and Computer Services

4. Monetary Policy Department

5. Premises Department

6. Secretary’s Department

7. Press Relations Division

8. Exchange Control Department

9. Rural Planning and Credit Department

10. Financial Institutions Division

11. Department of Banking Supervision

12. Department of Banking Operations and Development

13. Department of Financial Companies

14. Department of Non-Banking Supervision

15. Department of Administration and Personnel Management

16. Human Resources Development Department

17. Deposit Insurance and Credit Guarantee Corporation

18. Inspection Department

19. Urban Banks Department

20. Department of Currency Management

21. Department of External Investments and Operations

22. Department of Expenditure and Budgetary Control

23. Department of Government and Bank Accounts the local

24. Internal Debt Management Cell

25. Industrial and Export Credit Department

26. Legal Department

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