Banking Awareness Notes: Subsidiaries of RBI

Today in this blog we’ll be dealing with the subsidiaries of RBI. The topic is relevant not only for RBI Grade B Exam, but might appear in several other forthcoming exams like IBPS RRB PO, RRB Office Assistant, Indian Bank PO Exam, etc.

Subsidiaries of RBI

Before talking about the subsidiaries of RBI, let us first understand what is meant by the word ‘subsidiary’.

A subsidiary bank, or a subsidiary company, is a bank which is owned or controlled by any other bank or company. The subsidiary company is called the daughter company, and the company holding control over the other is known as the Parent company.

India’s Central bank, The Reserve Bank of India, manages the monetary policy of the Indian rupee. It was established on April 1, 1935 under the provisions of the Reserve Bank of India Act, 1934, and was nationalized on January 1, 1949.

Know More About RBI

The Reserve Bank of India has three fully owned subsidiaries, i.e., the entire paid-up capital is contributed by the RBI. They are:

  • Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
  • National Housing Bank (NHB)
  • Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)

Deposit Insurance and Credit Guarantee Corporation of India (DICGC)

  • It was established on established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961.
  • Its functions are governed by RBI under the provisions of ‘The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961’ and ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’ (DICGC Act).
  • The Head Office is at Mumbai.
  • Its four branches are situated at Chennai, Nagpur, Kolkata, and New Delhi.
  • It aims to provide insurance of deposits and guarantee the credit facilities.
  • It insures all bank deposits, such as saving, fixed, current, recurring, etc. except –
  • Deposits of foreign Governments;
  • Deposits of Central/State Governments;
  • Inter-bank deposits
  • Deposits of the State Land Development Banks with the State co-operative banks;
  • Any amount due on account of and deposit received outside India
  • Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.
  • It provides insurance cover of Rs. 1,00,000/- per individual.
  • Malvika Sinha is the Executive Director of DICGC.

National Housing Bank (NHB)

  • It was established on 9 July 1988 under the National Housing Bank Act, 1987.
  • The Head Office is at New Delhi.
  • It is the Apex level institution for housing.
  • It aims at-
    • Promoting housing finance institutions both at local and regional levels
    • Providing financial and other support to such institutions
    • Promoting the market potentials to cater the housing needs of all segments of the population
    • Giving directions to the housing finance institutions
    • Supervising Housing Finance Company (HFCs) through On-site & Off-site surveillance
    • Strengthening the credit delivery network for housing finance
  • Shri Sriram Kalyanaraman is the Managing Director (MD) & Chief Executive Officer (CEO) of NHB.

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)

  • It was established on 3rd February 1995.
  • It  design, print and supply banknotes for the Reserve Bank of India(RBI) to meet the demand of the banknotes in the country.
  • The headquarter is at Bangalore, Karnataka.
  • BRBNMPL has two bank note presses in Mysore and Salboni.
  • As the name suggests, it is a Private Limited company, i.e., not listed on Stock market exchange. It was registered as the Private Limited Company under the Companies Act 1956.
  • Shri B.P. Kanungo is the Chairman, and Shri S.K. Maheshwari is the Managing Director of BRBNMPL.

That is all from us in this blog. Hope you find the information useful.

All the best.

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