Structure & Functions of RBI, Organisational Structure of RBI

Table of content

Structure & Functions of RBI

Structure of RBI – The Reserve Bank of India (RBI) is India’s central bank and the main authority that regulates the country’s banking system. It plays a key role in supporting the nation’s economic growth by managing the main payment systems and ensuring financial stability. Anyone preparing for banking or regulatory exams should have a clear understanding of the RBI’s structure and functions. This blog will guide you through all the important details in an easy-to-understand way.

Structure & Functions of RBI – Complete Notes

Before moving on to the Structure & Functions of RBI, let us know what is RBI, when was RBI established, where was RBI’s first central office, what does central office refers to, when RBI’s office was shifted to Mumbai, etc.

Download Summary of RBI Annual Report

Reserve Bank of India (RBI)

Let’s check out the answers to the above RBI related questions in the following pointers:

Establishment: RBI was established on April 1, 1935 under the RBI Act, 1934.
Initial Location: The Central Office was first set up in Kolkata.
Permanent Headquarters: The office was permanently moved to Mumbai in 1937.
Governor & Policy Making: The Central Office is where the Governor works and policies are formulated.
Nationalization: RBI was nationalized in 1949 and has been fully owned by the Government of India (GOI) since then.

Attempt FREE RBI Grade B Mock Tests

Structure of RBI

We have shared the complete Structure of RBI below. Also know that every year, RBI Grade B Notification is released wherein candidates can fill up the forms, and sit for the exam. If the candidate clears all three phases of the selection process, then he/she is selected as RBI Grade B Officer.

Download 100+ Important Economic & Finance Terms Ebook

RBI Structure: Central Board

The affairs of the Reserve Bank of India (RBI) are managed by a Central Board of Directors, which is the highest governing body of the bank. In addition, there are four Local Boards for the Northern, Southern, Eastern, and Western regions to look after regional interests.

The Central Government appoints or nominates the directors of the Central Board and the members of the Local Boards according to the RBI Act. The composition of the Central Board is defined under Section 8(1) of the RBI Act, 1934. The Central Board consists of:

The Governor
4 Deputy Governors of the Reserve Bank
4 Directors nominated by the central government, one from each of the four Local Boards as constituted under Section 9 of the Act
10 Directors nominated by the central government
2 government officials nominated by the central government

The Central Board is assisted by three committees:

The Committee of the Central Board (CCB)
The Board for Financial Supervision (BFS)
The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)

Organizational Structure of RBI

The organizational structure of RBI is given below. Also, do not forget to download the PDF of organizational structure.

Support Staff> Assistant Manager> Manger> Assistant General Manager> Deputy General Manager> General Manager> Chief General Manager> Principal Chief General Manager> Executive Directors> Deputy Governors> Governor

Download Organisational Structure of RBI

Functions of RBI

Check out the below-given points to know the Functions of RBI in detail:

Monetary Authority: As the central bank of India, the RBI is the monetary authority of the country. It has the exclusive power to issue currency notes and to control the supply of money and credit in the economy, ensuring price and monetary stability.
Regulate & Supervise Financial Stability and Inclusion: The RBI is responsible for regulating and supervising banks and financial institutions to maintain financial stability and promote financial inclusion across the country.
Currency Management: Currency management involves handling the entire life cycle of banknotes, including their issuance, circulation, and withdrawal, ensuring smooth availability of cash in the economy.

Assessing the printing requirement of various denominations of notes,
Placing indents with the note printing presses,
Supplying and distributing adequate quantities of currency throughout the country
Ensuring the quality of banknotes in circulation by a continuous supply of clean notes and timely withdrawal of soiled notes.

Section 23 of the RBI Act, 1934 mandated that the function of issuance of banknotes (above 1 Rupee) is to be conducted by the RBI through a separate department called the Issue Department.

Related Links	Related Links	Related Links
RBI Grade B Apply Online	RBI Grade B Eligibility	RBI Grade B Syllabus & Exam Pattern
RBI Grade B Selection Process	RBI Grade B Exam Date	RBI Grade B Admit Card
RBI Grade B Previous Year Papers	RBI Grade B Result	RBI Grade B Salary

Foreign Exchange Management: The RBI manages and monitors the foreign exchange market in India. It regulates the market under the Foreign Exchange Management Act (FEMA), 1999.
Banker to Banks: The RBI acts as a banker for other banks and the Government. It maintains their accounts, handles transactions, and provides various banking services.
Banker to Government: The RBI manages the Government’s banking transactions, including raising funds from the public. It also serves as the Government’s agent and advisor, helping with financial management efficiently.
Regulate and Supervise the Financial System: The RBI supervises and regulates the major part of India’s financial system, including commercial banks, urban co-operative banks (UCBs), certain financial institutions (FIs), and non-banking financial companies (NBFCs). Some financial institutions also regulate other entities under the RBI’s framework.

Download 120+ Management MCQs Ebook

In addition to these, the Reserve Bank of India also represents India at the International Monetary Fund (IMF), promotes the growth of the economy, acts as a lender of last resort to commercial banks, strengthens and supports small local banks, and encourages banks to open branches in rural areas, publish economic data, etc.

Current Governor of RBI

Shri Sanjay Malhotra, IAS, 1990 batch, Rajasthan cadre, former Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, assumed charge as the 26th Governor of the Reserve Bank of India effective 11th December 2024.

Click Here to Check the Complete List of RBI Governors

Structure & Functions of RBI – Sample Questions

Q. Which of the following is not the function of RBI?

Banker to banks and Government, lender of the last resort
Credit Management
Accepting deposits and making loans from public
Regulating Currency
None of the above

Answer: Accepting deposits and making loans from public

Q. When was the Reserve Bank of India nationalized?

1935
1947
1948
1949
1960

Answer: 1949

Topper’s Corner	Topper’s Corner	Topper’s Corner
RBI Grade B Topper Gorakh Jayswal	RBI Grade B Topper Aviral Agrawal	RBI Grade B Topper Prachi Dhurandhar
RBI Grade B Topper Diksha Shinde	RBI Grade B Topper Strategy by Aneesh J	RBI Grade B Topper Strategy by Samyak Bhandari
RBI Grade B Topper Strategy by Saurabh Gupta	RBI Grade B Topper Strategy by Vinodh Kumar	RBI Grade B Topper Strategy by Nikhil Bharate

RBI Grade B Preparation Material – Free Ebooks

Hey aspirants!! We have specifically kept this section for the free ebooks. Here, you will get all the topic-wise ebooks. We will keep on updating fresh and new ebooks on different topics so do not forget to bookmark this blog. To download this ebook, all you need to do is log in. Also, download RBI Grade B Memory-Based Papers below:

Download FREE Ebooks on Government Schemes for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA

FREE Ebooks on General Awareness, ESI, FM & Miscellaneous Topics for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA – Download

The syllabus of all the regulatory exams is somewhat similar, so practicing and learning from other exam-specific ebooks are also beneficial in the preparation. Here, we have compiled all the latest ebooks that will help you ace the exam.

Download FREE Ebooks on QRE (Quantitative Aptitude, Reasoning, English) for all Regulatory Exams: IRDAI, RBI, NABARD, SIDBI, SEBI, IFSCA

Download all the ebooks for FREE and enhance your preparation.

Quantitative Aptitude Ebooks

Reasoning Ebooks

English Language Ebooks

Saloni Singhal

Hello there! I’m a dedicated Government Job aspirant turned passionate writer & content marketer. My blogs are a one-stop destination for accurate and comprehensive information on exams like Regulatory Bodies, Banking, SSC, State PSCs, and more. I’m on a mission to provide you with all the details you need, conveniently in one place. When I’m not writing and marketing, you’ll find me happily experimenting in the kitchen, cooking up delightful treats. Join me on this journey of knowledge and flavors!

2 thoughts on “Structure & Functions of RBI, Organisational Structure of RBI”

Thank you. this was so helpfull

sir,
I have a E or S joint SB account to be operated by any one of us with ICICI bank and KOTAK mahindra bank with my wife. As far as i know both accounts have the same rights to any one of us. The Negotiable instrument Act has not amended the Joint E or s account. Please clarify
whether any amendment is made in the negotiable instrument act regarding Joint E or S account. You being the supreme authority in Banking in India you can clarify.
Thanking you,
Ganesan

Comments are closed.