Consumer Education and Protection Department

The Consumer Education and Protection Department (CEPD), set up in 2006 as Customer Service Department, frames policy guidelines for consumer protection and oversees the functioning of the 24 Offices of RBI Ombudsman (ORBIOs) and 32 Consumer Education and Protection Cells (CEPCs). The major functions of CEPD include:

1. Administering the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021;

2. Handling complaints regarding deficiencies in customer service in banks, received in RBI through the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal of Government of India (GoI);

3. Serving as the Secretariat to the Appellate Authority (AA) under the RB-IOS, 2021;

4. Overseeing the grievance redress mechanism in respect of services rendered by various offices/departments of RBI;

5. Liaising with banks, Indian Banks’ Association, ORBIOs and the regulatory departments of RBI on matters relating to customer service and grievance redress, and providing policy inputs;

6. Creating consumer awareness and disseminating information relating to customer service and grievance redress by banks and RBI;

7. Compiling and publishing the Annual Report of the RB-IOS.

Corporate Strategy and Budget Department

Functions:

• Formulation of Bank’s budget and monitoring thereof; Expenditure Rules

• Corporate Strategy – Monitoring of Implementation

• Formulate Business Continuity Policy and implement BCM throughout the Bank

• Management of Superannuation Funds, actuarial valuation of liabilities annually

• Work related to (i) Opening of offices and
                           (ii) Institutes funded by the Bank

Department of Communication

The origin of the Department of Communication could be traced to the Division of Publications and Press Relations in the then Economics Department way back in 1960’s. Recognising the widening range of functions of the Reserve Bank and its associate institutions and the need for effective publicity and public relations, the office of the Press Relations Officer was converted into a full-fledged Press Relations Section in the seventies. The Division was, in March 2007, given the status of a full-fledged department and was renamed Department of Communication (DoC).

Communication Policy

In 2008, the Reserve Bank of India for the first time, elaborated its communication policy which was placed on the RBI website with the approval of the Reserve Bank's Central Board of Directors. An updated Version 2.0 of communication policy was released in July 2021.

Dissemination

The varied publications of the Reserve Bank are the mainstay of the Reserve Bank’s dissemination policy. Apart from the publications, speeches of the Governor and Deputy Governors provide rationale and explanations behind the policy decisions. Informal discussions with financial editors are also arranged every two months to keep open an informal channel of communication between the media and the Reserve Bank.

Dissemination of information in the Reserve Bank is centralised. The present communication channels used by DoC for dissemination of information are:

• Press releases, press summaries of reports and publications, speeches of Governor/Deputy Governors and rejoinders;

• Press conferences, economic editors’ conferences and media briefings;

• Meetings/interviews of press persons with the Reserve Bank officials;

• Emails;

• Learning sessions for media

• Brochures/pamphlets;

• Website;

• Advertisements;

• Periodicals.

Feedback

As a 360-degree communication process, the Reserve Bank actively seeks feedback from stakeholders on regulations through its website. Department of Communication also monitors reports appearing in the newspapers, journals and news agencies and television and prepares a daily news summary of important news items in national media.

Department of Currency Management

The Department of Currency Management provides focused attention on the management of currency notes and coins. The mandated functions of the Department include those related to:

• Management of currency notes, such as, design, printing and timely supply of currency notes and withdrawal of currency notes and distribution of coins.

• Keeping circulation of counterfeit banknotes in check.

• Monitoring currency chests and availability of customer service to the public by facilitating exchange of notes and coins.

Under this mandate the Department undertakes the following functions:

Planning, Research and Development: Evaluating the need for the introduction of new design banknotes and the security features that need to be incorporated in banknotes, assessing currency needs, (notes and coins) and ensuring adequate and timely supplies of notes and coins.

Resource and Remittance Operations: Monitoring allotment of notes and coins among issue offices and logistics for their supply and overall resource operations.

Currency Chest Operations: Formulating policy on the establishment of currency chests, rationalisation and monitoring their operations.

Note Exchange Operations: Attending to the policy regarding the exchange of soiled and mutilated notes and administration of the Reserve Bank of India (Note Refund) Rules through Reserve Bank of India Issue Offices and banks, and monitors customer service to the public in this regard.

Forged Notes Vigilance Operations: Formulating policy on dealing with forged notes, compiling data and sharing information on cases of forged notes with central and state Government, and organising public awareness on the features of genuine currency notes.

Note Processing Operations: Monitoring soiled notes accumulated at currency chests and their withdrawal and disposal through a mechanised and eco-friendly manner.

Security Related Operations: Making policy with regard to security arrangements at issue offices and currency chests, treasure in transit as well as periodical reviews of security arrangements.

Department of Economic and Policy Research

A knowledge centre for macroeconomic policy oriented research, the Department of Economic and Policy Research (DEPR) of the Reserve Bank is entrusted with the task of providing research inputs and management information system (MIS) services for policy-related decision making. The research agenda of the department primarily focuses on macroeconomic challenges facing the Indian economy and covers multi-dimensional issues relating to monetary policy, growth and inflation dynamics, financial markets, forecasting of macroeconomic variables, banking sector, financial stability and external sector management.

The department is responsible for publishing the statutory reports of the Reserve Bank, viz., the Annual Report and the Report on Trend and Progress of Banking in India. Other publications of the department include State Finances: A Study of Budgets; the Reserve Bank of India Bulletin; the Handbook of Statistics on Indian States;and RBI Occasional Papers. The History of the Reserve Bank is also published by the department.

The department is a source of primary statistics on monetary aggregates, balance of payments and external debt, flow of funds, financial savings and state finances. The department has also been playing a crucial role in dissemination of long time series data on a host of macroeconomic variables through print and electronic media.

The department supports and encourages academic research across the country through RBI Professorial Chairs, fellowships and sponsoring of research projects and studies. The department also invites eminent researchers, scholars and policy makers from around the world for talks, seminars and interactive sessions with RBI researchers, the media and private sector analysts.

The department organises four lectures - two in the memory of former Governors viz., Shri C.D. Deshmukh and Shri L.K. Jha; and two lectures in the memory of eminent scholars viz., Professor P. R. Brahmananda and Professor Suresh Tendulkar.

Department of External Investments and Operations

Functions

• Investment and management of the foreign currency and gold assets of the Reserve Bank of India,

• Handling external transactions on behalf of Government of India (GOI) including transactions relating to International Monetary Fund (IMF)

• All policy matters incidental to India's membership of the Asian Clearing Union, and

• Other matters relating to gold policy, membership of the Bank for International Settlements (BIS) and bilateral banking arrangements between India and other countries like Russia, bilateral and South Asian Association for Regional Cooperation(SAARC) currency swap arrangements

Department of Government and Bank Accounts

The Department of Government and Bank Accounts (DGBA) discharges the core central banking function of being a banker to the government and banker to banks.

Banker to Government

• maintains principal deposit accounts of Central and State Governments at Central Accounts Section of the Reserve Bank of India, Nagpur

• carry out the day to day operations pertaining to reporting of Government transactions by agency bank for fund settlement, at Banking Departments in Regional Offices.

• attends to matters relating to government business, such as appointment of agency banks, paying commission and overseeing their conducting of government business, besides issuing guidelines and instructions to agency banks, mostly in consultation with the government.

• Monitors the integration of Central/State Government systems with Reserve Bank’s core banking solution – e-Kuber – for direct collection of their e-receipts and making e-payments.

Banker to banks

• issues instruction for opening of current accounts of banks with RBI which is used by the banks to maintain statutorily prescribed cash reserves with RBI as well as to carry out inter-bank transactions including interbank clearing settlements

Others

• finalises the weekly statement of accounts and the annual financial statements (balance sheet and income statement) of the Reserve Bank.

The Department of Government and Bank Accounts (DGBA) also functions as the central office of the Banking Departments at Regional Offices.

Department of Information Technology

Information and Communication Technology (ICT) is a central and core component in the discharge of RBI's functions. Technology is leveraged to provide best-in-class and environment friendly digital infrastructure including energy-efficient and paperless workplaces.

The department envisages to collect, process and store information entirely in digital form, through platforms which enable improving existing financial products and services and creating new ones, to serve the public and discharge its regulatory obligations with transparency, efficiency, and immediacy. The ICT strategy of RBI encompasses four-way approach as under:

1. Transforming ICT architecture by enterprise-wide consistency across the applications through agility and assimilation of new technologies.

2. Building modern applications through use of emerging technologies and tools like Robotic Process Automation (RPA), Next-Orbit Systems, Big Data Analytics etc.,

3. Sustaining continuous operational excellence  through focus on resilience, reliability, and cost efficiency with guiding principles of “Security” and “Privacy” embedded in the design and architecture of IT systems.

4. Strengthening IT Governance Standards by laying down standards for quality assurance, data integrity and data privacy.

The department functions under the guidance of the IT Sub-Committee (ITSC) of the Central Board, especially in matters relating to overall IT strategy, infrastructure and applications, IT and cyber security, Business Continuity Planning, IT project implementation, etc.

Functions: 

1. Maintaining and operating critical payment systems and allied applications, namely, NEFT, RTGS and SFMS (messaging system); e-Kuber system that processes internal accounting and budgeting, besides providing banking services to Governments, banks, select financial institutions, etc.

2. Broad policy formulation for IT Architecture in the Bank and accordingly augment, replace, and upgrade IT infrastructure on a continuous basis.

3. Maintenance and upgradation of internal applications. 

4. Information and Cyber Security based on zero trust-based approach and development of Cyber Hygiene Culture.

The department oversees Bank’s subsidiaries namely Indian Financial Technology and Allied Services(IFTAS) and Reserve Bank Information Technology Private Limited (ReBIT).  

Department of Payment and Settlement Systems

Functions

The Department of Payment and Settlement Systems (DPSS), as a separate department of the Reserve Bank, came into existence in March 2005.

The functions of the Department include:

• Policy formulation in respect of payment and settlement systems

• Authorisation of payment and settlement systems/operators

• Regulation of payment and settlement systems

• Supervision and monitoring of payment and settlement systems

• Laying down standards for payment and settlement systems

• Designing, developing and integrating payment system projects of national importance and / or facilitating such implementation

• Implementation of the international principles relating to payment systems as enunciated by the Bank for International Settlements

The department has four Regional Offices at Chennai, Kolkata, Mumbai and New Delhi.

Board for Regulation and Supervision of Payment and Settlement Systems

The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) prescribes policies relating to the regulation and supervision of all types of payment and settlement systems. The BPSS also provides guidance on setting standards for existing as well as future payment systems, authorising the payment and settlement systems/operators, determine criteria for membership to these systems, including continuation, termination and rejection of membership. BPSS meets once every quarter.

• The payment and settlement systems in India are regulated under the Payment and Settlement Systems Act, 2007 (PSS Act). The PSS Act as well as the Payment and Settlement System Regulations, 2008 framed under the Act came into effect from August 12, 2008. In terms of the PSS Act, no person other than the Reserve Bank of India (RBI) can commence or operate a payment system in India unless authorised by the Reserve Bank.

• Payment and settlement systems in India includes cheque based clearing systems, Electronic Clearing Service (ECS) suite, National Electronic Funds Transfer (NEFT) System, electronic payments using debit and credit cards, prepaid payment instruments, mobile banking, internet banking, etc. While Real Time Gross Settlement Systems (RTGS) and Clearing Corporation of India Ltd. (CCIL) constitute financial market infrastructure, National Payments Corporation of India (NPCI) is the umbrella organisation for retail payments.

Department of Regulation

The Department regulates Commercial Banks, Co-operative Banks, Non-Banking Financial Companies including Housing Finance Companies and Asset Reconstruction Companies, All India Financial Institutions, namely Export-Import Bank of India (EXIM Bank), National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), Small Industries Development Bank of India (SIDBI) and National Bank for Financing Infrastructure and Development, and Credit Information Companies, collectively called as "Regulated Entities" (REs), by exercising the powers conferred by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Credit Information Companies (Regulation) Act, 2005 and other relevant laws. The Department carries out, inter alia, the following major functions:

• Licensing/registration of REs, branch expansion, amalgamation, reconstruction, cancellation of license/registration and winding up / liquidation.

• Granting authorisations/approvals for setting up subsidiaries, undertaking new activities, etc.

• Promoting and fostering a sound, multi-faceted and competitive financial system by laying down norms for prudential and conduct regulations, keeping in view the principle of proportionality.

• Consulting and coordinating with other departments of the Reserve Bank, other finance sector regulators, REs, industry bodies and other stakeholders including Centre/State Governments while formulating major regulatory policies.

• Providing appropriate regulatory environment for development of new/emerging/innovative products and services by REs.

• Keeping itself abreast of domestic and global developments and formulating suitable policy responses, suggesting necessary amendments to existing laws and enactment of new legislations.

• Striving to bring the regulatory standards for REs on par with the international standards / international best practices.

Department of Statistics and Information Management

Functions

• Collection, processing and analysis of data on banking, corporate and external sectors.

• Planning, designing and organising quick sample surveys regularly for area of interest to the Reserve Bank.

• Maintaining the Reserve Bank’s Data Warehouse and disseminating data/information.

• Modelling and forecasting of important macro-economic indicators.

• Development of methodology for the measurement and estimation of variables and improvement of the database of various sectors of the economy through participation in committees, working groups, etc.

• Providing technical support to other departments of the Reserve Bank in statistical analysis in specific areas and undertaking studies in the areas of interest to the Reserve Bank.

• Building a technology-driven centralised information management of receipt, processing, production, storage and retrieval of data and its dissemination system based on data warehousing approach. The system provides the decision-makers, analysts and researchers, online and real-time access to a central repository of clean and consistent historical and current data.

• Standardisation in reporting of financial data under XBRL, which is being integrated with the data warehouse, and is envisaged to be the only platform for receiving and validating the incoming data in due course.

• Developing a statistical system for maintaining data quality.

• Bringing out Reserve Bank’s data publications directly from the data warehouse.

• Undertaking forward-looking surveys on macroeconomic changes and expectations for monetary policy formulation. Conducting other periodic surveys to fill data gaps on relevant indicators, e.g., housing, employment placement for fresh graduates, etc.

• Improving the coverage of studies relating to finances of private corporate sector of the economy.

• Generation of forecasts of macroeconomic variables and related empirical work, including developing a quarterly macro-econometric model for forecasts and policy simulation.

• Undertaking analytical studies using of various statistical, econometric and operational research techniques which are relevant for the Reserve Bank.

Department of Supervision

The Department of Supervision carries out the mandate of supervising all scheduled commercial banks (excluding Regional Rural Banks), Local Area Banks, Payments Banks, Small Finance Banks, Credit Information Companies, Primary Urban Cooperative Banks, Non-Banking Financial Companies, Asset Reconstruction Companies, Factoring companies and All India Financial Institutions (AIFIs) within the legal framework of the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Credit Information Companies (Regulation) Act, 2005, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Factoring Regulation Act, 2011. Although regulated by RBI, the Housing Finance Companies (HFCs) and various Rural Cooperative Banks are not supervised by RBI.

• Oversight on the safety and soundness of the Supervised Entities (SEs) including review of their solvency position and their regulatory compliance status within the provisions of relevant statutes;

• Planning and undertaking various supervisory processes and procedures, including inspection, under various models / standards adopted in respect of such SEs of different constitution, business and size. The inspections / scrutinies undertaken by RBI do not amount to audit or investigations of the SEs;

• Off-site monitoring of SEs through returns, data etc. and preparing reviews, analysis of balance sheet of banks/ AIFIs; Managing the Central Repository of Information on Large Credit (CRILC) database; Carrying out various analyses on the banking system reviews;

• Formulating Supervisory policy consistent with the existing supervisory stance; Monitoring/ taking action with respect to banks falling under the revised Prompt Corrective Action (PCA) framework;

• Maintaining a centralised registry of financial sector frauds and attending to the complaints with supervisory implications received against SEs from public, banks, Government, etc.;

• Determining the criteria for the appointment of statutory auditors and special auditors and assessing audit performance and disclosure practices;

• Framing Policy and supervising the cyber-security infrastructure and operations of SEs; analysing reports on cyber security incidents and taking necessary follow-up action including issue of advisories/ alerts/ circulars;

• Serving as the secretariat for the Board for Financial Supervision (BFS);

• Serving as the Secretariat to the Inter-Regulatory Forum (IRF), which was set up in 2012 under the aegis of the Financial Sector Development Council Sub-Committee (FSDC-SC) and functions as college of domestic supervisors viz. RBI, SEBI, IRDA and PFRDA to oversee the coordinated supervision of financial conglomerates (FCs);

• Co-ordinating inter-agency forums such as State Level Coordination Committee (SLCC), Task Force on Urban Co-operative Banks (TAFCUB), etc.; and

• Strengthening cross-border co-operation among supervisors by engaging with supervisors of other jurisdictions through Memorandum of Understanding (MoU)/ Letter of Co-operation (LoC) for sharing of supervisory information.

Enforcement Department

Reserve Bank of India (RBI) is empowered to impose penalties under various statutes applicable to the banking and financial sector. The enforcement process was spread across various supervisory/regulatory departments. In line with the international best practices of separating enforcement action from the regulatory/supervisory process, the Enforcement Department was set up in April 2017 with a view to put in place a structured, rule based approach to identify and process the violations by the regulated entities and enforce the same consistently across entities.

The core function of the Department is to undertake enforcement action against the entities regulated by RBI on the basis of supervisory reports and regulatory references in an objective and consistent manner, to ensure compliance with regulations within the overarching principle of financial system stability, greater public interest and consumer protection. In furtherance of the same, a policy for enforcement containing, inter alia, the factors to be considered for determining the materiality of the violations and for determining the amount of penalty has been framed with the approval of the Board for Financial Supervision.

Initially, the Department was tasked with the responsibility of imposing monetary penalties for violations by the Scheduled Commercial Banks (SCBs) under Section 47A of the Banking Regulation Act, 1949, (B.R. Act), rules framed and directions/regulations issued thereunder and violations falling under the Prevention of Money Laundering Act, 2002 where directions have been issued by RBI. Subsequently, enforcement work pertaining to Co-operative Banks, under the B.R. Act and Non-banking Financial Companies (NBFCs) under Section 58G of the RBI Act, 1934 was also brought under purview of the department, with effect from October 3, 2018. RBI is also empowered to initiate penal action against regulated entities under Section 30 of the Payment & Settlement Systems Act, 2007, Section 22 of Factoring Regulation Act, 2011, Section 25 of Credit Information Companies (Regulation) Act, 2005 and Section 30A of SARFAESI Act, 2002. The department has also been mandated to take enforcement action under the said acts for violations committed by SCBs, Co-operative Banks and NBFCs. Violations of the provisions of FEMA, 1999 attracting monetary penalties and other regulatory or supervisory action would continue to be taken by the respective regulatory/supervisory departments.

The process of enforcement action entails issuance of show cause notice to the regulated entity and providing it with a reasonable opportunity of being heard in line with the principle of natural justice involving 'due process'. Presently, a three-member Committee of Executive Directors adjudicates the matter and passes a speaking order. The details of the enforcement action are provided through Press Releases and in various publications of RBI.

Currently, the laws enabling RBI to undertake enforcement action empower it to impose monetary penalty only on the regulated entities and not on the individuals in-charge of the entities or responsible for the violations. It also needs to be noted that the enforcement process is not a mechanism for customer grievance redressal. However, complaints involving violations of regulations are examined for possible enforcement action based on scrutiny findings by the concerned supervisory department.

The Department has six Regional Offices located at Ahmedabad, Chennai, Kolkata, Mumbai, Nagpur and New Delhi.

Financial Inclusion and Development Department

Financial inclusion and development role of the Reserve Bank envisages formulating policies to make credit available to productive sectors of the economy including rural, and Micro, Small and Medium Enterprises (MSME) sectors. Promoting financial education and financial literacy are the current focus of the function and encapsulates the renewed national focus on Financial Inclusion. The functions of the Department in brief are:

• To formulate macro policy to strengthen credit flow to the priority sectors

• To ensure that priority sector lending becomes a tool for banks to capture untapped business opportunities among financially excluded sections of the society

• Ensuring access to an array of basic formal financial services and products and scaling up financial awareness initiatives

• To step up credit flow to MSME sector and to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs

• To enhance flow of credit to individuals, Self Help Groups, persons belonging to SC/ST category and Minority Communities through select Government Sponsored Schemes.

• To strengthen institutional arrangement, such as, state level bankers committee and Lead Bank Scheme to facilitate these objectives

Financial Markets Operations Department

Carved out of the Financial Markets Department in November 2014, the Financial Markets Operations Department (FMOD) has been entrusted with the responsibility of carrying out market operations towards implementing the Reserve Bank’s monetary policy objectives. The Department conducts operations in the money, government securities and forex markets. As a part of this responsibility, FMOD also undertakes analysis of various market segments and provides inputs to the top management for informed decision making.
The specific functions of FMOD include:

• Forex market operations in the onshore/offshore OTC and Exchange Traded Currency Derivatives (ETCD) Segments

• Liquidity Adjustment Facility (LAF) operations (Repo, Reverse repo, Marginal Standing Facility) including Open Market Operations (Outright sale/purchase of gilts) under the extant liquidity management framework

• Special Market Operations (SMO) for specific purposes

• Computation of 6-currency Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER)

• Issuance and buyback of dated securities under Market Stabilisation Scheme (MSS)

• Analysis of market developments

• Carrying out market-oriented research and analysis

• Estimation of liquidity requirement in the banking system

• Providing secretarial assistance to the Financial Markets Committee (FMC) of the Reserve Bank

• Coordinating meetings of Early Warning Group (EWG) comprising financial sector regulators and Ministry of Finance

In addition, FMOD also attends to policy issues relating to various segments of financial markets, fixation of Intra-Day Limits (IDL) for operations of Real Time Gross Settlement Accounts and Liquidity Support(LS) facility limits.

Note: The work of computation and dissemination of reference rate for USD/INR and exchange rate of other major currencies which was earlier done by the department has been taken over by Financial Benchmarks India Private Limited (FBIL) with effect from July 10, 2018. The reference rate can be viewed here.

Financial Markets Regulation Department

The Financial Markets Regulation Department (FMRD) has been set up on November 3, 2014 with a mandate to regulate, develop and oversee financial markets. The primary activities of the department include:

• Regulation and development of the money, government securities, foreign exchange markets and related derivative markets;

• Regulation and supervision of financial benchmarks for interest rates and foreign exchange markets;

• Development work related to financial market infrastructure for the money, government securities, foreign exchange markets and related derivative markets, including trade repository for over-the-counter(OTC) derivative transactions;

• Oversight / surveillance of the money, government securities, foreign exchange markets and related derivative markets; and

• Secretarial support to the Technical Advisory Committee on Money, Government Securities and Foreign Exchange Markets and RBI-SEBI Technical Committee on Interest Rate and Currency Futures.

In addition, a Market Intelligence Cell is proposed to be set up as part of FMRD.

Financial Stability Department

Keeping in view both international and domestic initiatives for resolving financial crisis and strengthening international financial architecture, the Financial Stability Department (FSD) was set up in July 2009. The main functions of FSD are:

• Conduct of macro-prudential surveillance of the financial system on an ongoing basis

• Preparation of financial stability reports

• Development of a time series of a core set of financial indicators

• Conduct of systemic stress tests to assess resilience and

• Development of models for assessing financial stability

Following the formation of the Financial Stability and Development Council (FSDC), FSD provides the Secretariat to the Sub-Committee of the FSDC which is headed by the Governor. Executive Director (in charge of FSD) acts as the Member-Secretary of the FSDC Sub-Committee.

FinTech Department

FinTech Department was setup in January 2022 to provide greater focus to the FinTech sector and facilitate innovation while remaining vigilant and addressing the associated risks.

Objectives of the Department

1. To give dedicated focus to FinTech sector and keep pace with the dynamically changing financial landscape.

2. Promote innovation in FinTech sector, identify the challenges and opportunities associated with it and address them in a timely manner.

3. To provide a framework for further research on the subject that can aid policy interventions by the Bank.

4. To conduct inter-regulatory and international coordination on the subject and identify its associated challenges and opportunities and address them in a timely manner.

Innovation Initiatives of the Department

In pursuance of its mandate the Department has undertaken several initiatives, including:

1. Pilot of CBDC (e₹): The Department is currently engaged in working towards a phased implementation strategy, through testing of various use cases of CBDC (Digital Rupee (e₹)) through the pilot before final launch.

2. Regulatory Sandbox (RS): The Framework for Regulatory Sandbox was announced in August 2019, enabling live testing of innovative financial products in a controlled environment. Its objective is to promote responsible innovation, enhance efficiency, and bring benefit to consumers.

3. Inter-operable Regulatory Sandbox (IoRS): IoRS facilitates testing of innovative hybrid financial products / services falling within the regulatory ambit of more than one financial sector regulator viz. RBI, SEBI, IRDAI, IFSCA and PFRDA. The Department acts as a nodal point and drives the IoRS initiative.

4. Reserve Bank global hackathon HaRBInger fosters innovation by bringing together participants to develop innovative solutions to various problem statements for addressing financial sector challenges.

5. Unified Lending Interface (ULI), a Digital Public Infrastructure (DPI) in lending space to facilitate lending by enabling seamless flow of digital information from multiple data service providers to lenders. The pilot has commenced since August 17, 2023.

6. Account Aggregator: The focus of the Department has been on strengthening the technological aspects of the AA ecosystem such as API standards, Consent Architecture, Data security, IT framework, IS audit etc. to ensure that the ecosystem remains robust, secure, transparent, and efficient.

7. Reserve Bank Innovation Hub, a wholly owned subsidiary set up to foster innovation in the financial sector in a sustainable manner. The FinTech Department is the nodal Central Office Department for the same.

8. FinTech and EmTech Repository, set up to capture essential information about FinTech entities and adoption of emerging technologies (like AI, ML, Cloud Computing, DLT, Quantum, etc.) by regulated entities (banks and NBFCs etc.), respectively.

9. The 'Framework for Recognising Self-Regulatory Organisation(s) for FinTech Sector' (SRO-FT framework) lays down the characteristics of a FinTech SRO, and includes, inter-alia, functions, governance standards, etc.

Foreign Exchange Department

The Foreign Exchange Regulation Act, 1973 (FERA) was repealed and a new Act called the Foreign Exchange Management Act, 1999 (FEMA) came into force with effect from June 1, 2000. The objective of the new dispensation is to facilitate external trade and payments and promote orderly development and smooth conduct of foreign exchange market in India.

Facilitator of Forex Transactions

Since the procedures have been simplified and powers have been delegated to the Authorised Persons under the FEMA, 1999, the role of the Foreign Exchange Department is minimum so far as individual citizens are concerned. Persons resident in India have to simply approach the Authorised Persons for their foreign exchange needs. Guided by the Current Account Rules notified, from time to time by the Government of India and Capital Account Regulations notified by the Reserve Bank, the Authorised Persons will facilitate foreign exchange transactions of individuals. The Reserve Bank processes only those applications which require its prior approval under Foreign Exchange Management (Current Account Transactions) Rules and (Capital Account Transactions) Regulations.

Compounding of FEMA Contraventions

In keeping with the spirit of the FEMA, the Government of India has empowered the Reserve Bank under section 15 of the Act to compound the contraventions of all sections of FEMA, 1999 except section 3(a) of the Act. Under compounding the contravener has the option of voluntarily admitting to the contravention, pleading guilty and seeking redressal. The process provides comfort to individuals and corporates that have inadvertently contravened FEMA while taking serious view of wilful, mala fide and fraudulent transactions.

Human Resource Management Department

Human Resource Management Department (HRMD) essentially facilitates the Reserve Bank's central banking activities by (i) creating an enabling environment to enhance the efficiency of the organisation (ii) drawing out from the staff the very best by a system of proper placements, incentives, and (iii) creating an atmosphere of trust, a certain security of expectations and a feeling that the organisation cares about the well being and personal aspirations of the staff. This helps align personal aspirations of the staff with professional goals and helps enhance efficiency in the organisation.

Specifically, the functions of HRMD are:

a) To evolve and implement policies for:

• Recruitment

• Placement

• Promotions and career progression

• Performance and potentiality appraisal

• Training, development and skill upgradation

• Mobility (Transfers and Rotation)

• Reward and motivation

• Retirement/voluntary vacations

• Wage structure and other facilities

• Deputation/Secondment/Tour of duty

b) To generally administer discipline management system in the Reserve Bank

c) To disseminate information under the Right to Information Act, 2005 with a view to promoting transparency and accountability in the Reserve Bank's operations

d) To maintain up-to-date database on human resources in the Reserve Bank

e) To maintain harmonious industrial relations and to conduct negotiations with various recognised bodies of different categories of staff on matters like pay scales and allowances, welfare schemes, personnel policies, etc.

f) To continuously review the appraisal system in order to make it an effective tool for HRD policy management

g) To design career and succession plan

h) To oversee the Reserve Bank’s training establishments (namely, Reserve Bank Staff College, Chennai and College of Agricultural Banking, Pune besides Zonal Training Centres at Chennai, Kolkata, Mumbai and New Delhi) and revitalise training functions

i) To administer Staff Suggestion Scheme

j) To oversee Summer Placement

k) To publish the Reserve Bank's house journal ‘WITHOUT RESERVE’ and to conduct RBI Quiz.

l) To act as Secretariat to Human Resource Management Sub-Committee of the Central Board.

m) To oversee matters pertaining to Prevention of Sexual Harassment of women at work place including secretarial assistance to Central Complaints Committee.

Inspection Department

Inspection Department was set up in 1935 when the Reserve Bank of India commenced its operations. The Department is tasked with the mandate of providing an independent and objective risk assurance/feedback on the operations/working of the offices of the Reserve Bank. It examines/evaluates and reports on the adequacy and reliability of the Reserve Bank's risk management, internal controls and governance process.

The Inspection Department is the Secretariat and also reports its assessments to the Audit and Risk Management Sub-Committee (ARMS) of the Central Board of the Reserve Bank. Audit observations which have been classified as High Risk are also placed before the Executive Directors' Committee (EDC) for their review and guidance. Findings of Information Systems (IS) audits are also placed before the Executive Directors' Committee (EDC) and Audit and Risk Management Sub-Committee (ARMS) of the Board. The Internal Audit function constitutes a key dimension in the Reserve Bank's governance architecture.

Streams of Inspection in the Reserve Bank

Presently, the following types of inspections are carried out/co-ordinated by the Department.

• Risk Based Internal Audit (RBIA)

• Information Systems Audit

• Concurrent Audit (CA)

• Control Self-Assessment Audit (CSAA)

• Compliance Audit

• Project Audit

Risk Based Internal Audit (RBIA)

Under the Risk Based Internal Audit (RBIA), the Inspection Department provides independent and objective opinion to the management on whether or not the Reserve Bank's business processes and risks are being properly managed. The RBIA reviews the outcomes of all other audits. Audit of various business units, i.e. Central Office Departments (CODs), Regional Offices (ROs), Training Establishments (TEs), Banking Ombudsman Offices (BO) and Associate Institutions (AIs) are taken up at different periodicities ranging from 12 to 36 months.

Information System Audit (ISA)

The Information System (IS) Audit is carried out as part of Risk Based Internal Audit (RBIA) along with functional audit to assess the adequacy and effectiveness of internal controls and provide independent assurance about the compliance of Information Systems being used in the Bank. The objective of this audit is to check adherence to the provisions of Bank's IS Policy.

Concurrent Audit (CA)

As a part of internal control mechanism, all the business units are required to get their transactions (mainly financial transactions) audited by external chartered accountant firms, concurrently with the occurrence of such transactions.

Control Self-Assessment Audit (CSAA)

This is a self-assessment/health check-up exercise to assess gaps in risk controls so that timely reviews are made, and corrective action taken/initiated to address the gaps. The assessments are carried out by persons unconnected with the operations/process being assessed. All business units are required to conduct CSAA at least twice in a year, that is, for the half-year ended June and December every year.

Compliance Audit

Compliance Audit is an important risk mitigation tool in the organization through which the compliance status of RBIA submitted by the Auditee offices and its sustenance is ascertained. Compliance Audit is conducted by Inspection Department during the middle of the cycle, as per the directions of the Top Management for those Auditee offices which have been rated as 'High Risk'.

Project Audit

Project Audit is an independent and objective project risk assessment function to provide assurance to the Top Management. The project audit is carried out under the aegis of Inspection Department with its internal resources or with the assistance of domain experts from other departments within the Bank or external audit firm if the need arises. Project Audit provides benefits by assessing and reconfirming feasibility of/obstacles to project, providing early warning signals/alerts, identifying and suggesting scope for improvements and saving time and cost etc.

Compliance, Follow-up and Reporting

Inspection Department follows up on the audit observations (RBIA, ISA, CA, CSAA, Compliance Audit and Project Audit) to ensure that prompt corrective actions or risk mitigating counter-measures are instituted. The Department undertakes off-site monitoring as well as on-site evaluation, wherever necessary. Off-site monitoring is undertaken by obtaining periodical returns from business units, analysing them and initiating follow-up as deemed appropriate.

ARMS & EDC Meetings

The Department co-ordinates and arranges periodical meetings of Audit & Risk Management Sub Committee (ARMS) and Executive Directors' Committee (EDC). The meetings of ARMS and EDs' Committee are conducted approximately once in three months.

Internal Debt Management Department

The main activities of the Internal Debt Management Department include:

• Managing the Government’s debt in a risk efficient and cost effective manner;

• Providing innovative and practical solutions for government’s debt management;

• Building a robust institutional framework of primary dealers (PDs).

Specific functions of the Department include:

• Government Borrowing: To manage market borrowing programmes of the Government of India (including preparing an issuance calendar in consultation with the Government of India), all State Governments and the Union Territories of Puducherry and Jammu and Kashmir. The function involves choosing the instrument and tenor, managing the auctioning process and monitoring the cash balances of the Central and the State Governments.

• Dealing Operations: To interface with the Government securities market for purchasing securities from the secondary market for investment purposes by State Governments under schemes like CSF & GRF and on behalf of foreign central banks. It also monitors movement of yields of Government securities, among other things, and provides necessary feedback to Top Management. It carries out monthly and quarterly analysis of the Government Securities - Secondary market.

• Primary Dealers: To enter into agreements with PDs, conduct underwriting auctions, monitor and review their performance with regard to underwriting, fulfilment of bidding commitments in primary markets and achievement of targets specified for secondary markets.

• Research: To provide policy, analytical and technical inputs for various committees and conferences including State Finance Secretaries conference. To also act as the focal point for answering parliamentary questions, queries of the Central Board and Committee of Central Board of the Reserve Bank, research contributions to the Reserve Bank’s, Government of India’s and other publications.

• Management Information Systems (MIS): To monitor the data pertaining to Government cash balances, maintains the MIS for the Top Management, provide data for various statutory and internal publications, oversee the technology platform for Government securities auction activities and undertake analysis. Also to undertake the assessment and short term projections of Government cash balances primarily for liquidity management purposes of the Reserve Bank.

• Central Debt: To maintain accounting/reporting of public debt management functions. These include formulation of policy and monitoring of Public Debt Offices, which act as depositories of Government securities, as also to maintain and service public debt, administration of Government Securities Act, 2006/Rules 2007 and also Public Debt Act, 1944/ Rules 1947 wherever applicable.

International Department

International Department was constituted on November 3, 2014 to augment the Reserve Bank's focus on international financial diplomacy and participation in formulation of global regulatory standards. The Department is responsible for participation in international fora and for supporting the top Management's interactions in this area, as also to facilitate their involvement in international economic cooperation. It has a research orientation towards framing the Reserve Bank's stance on issues in this sphere. The Department is also responsible for the Reserve Bank's external services and relations including on matters of technical cooperation with other central banks.

This department mainly looks after:

• International financial diplomacy and relations with international institutions/ country groupings including International Monetary Fund (IMF), Bank for International Settlements (BIS), Financial Stability Board (FSB), G20, Brazil, Russia, India, China and South Africa (BRICS), South Asian Association for Regional Cooperation Finance (SAARCFINANCE), Committee on Payments and Market Infrastructures (CPMI), Committee on the Global Financial System (CGFS), World Bank, World Trade Organization (WTO), Asian Development Bank (ADB), SEACEN, NGFS, G24, G30, and others. Most of the work often requires extensive co-ordination with various ministries in the GoI and departments within the Bank.

• Framing the Reserve Bank's views on issues of policy relevance in international economic cooperation, including inter alia those on regulatory issues and central bank currency swaps.

• Reserve Bank's initiatives at capacity building for officials of other central banks and managing exposure visits for delegates of foreign institutions/market participants/universities.

• Preparing research notes on current issues in international economic cooperation.

Legal Department

The primary responsibilities of the Legal Department are:

• Providing legal advice to the top management, departments, regional offices and subsidiaries of the Reserve Bank.

• Managing litigation on behalf of the Reserve Bank and the Deposit Insurance and Credit Guarantee Corporation (DICGC).

• Vetting of circulars, directions, regulations and agreements for the various departments of the Reserve Bank. Assisting drafting of legislation to be administered by the Reserve Bank.

• Acting as a Secretariat to the First Appellate Authority of the Reserve Bank under the Right to Information Act, 2005.

• Appearing on behalf of the Reserve Bank before the Central Information Commission and various judicial forums, such as, District Consumer Disputes Redressal Forum, State Consumer Disputes Redressal Commission, Labour Courts/Industrial Tribunals, etc.

Monetary Policy Department

Functions

Mandate and Objectives

According to the Reserve Bank of India Act, 1934, “...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".

Main Functions

• Acts as a secretariat for the Monetary Policy Committee (MPC).

• Assists the MPC in formulating the monetary policy.

• Provides technical inputs to the MPC such as short-term and medium term growth and inflation projections.

• Plays a key role in implementing monetary policy by assessing and forecasting liquidity conditions.

• Participates in Financial Markets Committee (FMC) which meets daily to guide financial markets operations including liquidity management.

• Monitors and assesses transmission of monetary policy on a regular basis.

• Prepares Monetary Policy Report (MPR).

• Compiles sector-wise and industry-wise bank credit data.

• Monitors compliance with CRR/SLR maintained banks.

• Acts as a nodal department for the Bank to act as a lender of the last resort.

• Authorises and allocates food credit to state governments.

Premises Department

The Premises Department's responsibility is to create and maintain premises- related infrastructure. The Department frames policies and guidelines on physical infrastructure, acquisition, maintenance, consolidation and disposal of office and residential space. It allocates capital budgets to Regional Offices and monitors high- value works/projects of Estate Departments across the country, keeping in mind ecological and environmental concerns.

The current thrust-areas of the Department are as follows:

• Promoting greater environmental consciousness, conserving resources like energy and water and auditing the use of these resources.

• Rationalisation of Bank's properties.

Rajbhasha Department

The Rajbhasha Department is responsible for promoting the use of Hindi in the Bank's official work as per the provisions contained in the Constitution of India and Official Languages Act, 1963. The main functions of the department are -

• Implementation of the provisions of Official Language Act and Rules and other related instructions received from Government of India (GoI) from time to time;

• Formulation of policy for promotion of Hindi as Official Language in the Bank;

• Preparation of reference material for making use of Hindi easier in the Bank;

• Submission of various data to Government on progressive use of Hindi in the Bank;

• Translation of statutory documents viz., Bank's Annual Report, Report on Trend and Progress of Banking in India, MPR, FSR, Bulletin and other publications of the Bank;

• Publication of Hindi magazine 'Banking Chintan Anuchintan', a professional magazine dedicated to banking;

• Arranging and imparting Hindi training by organising workshops and through Government of India's Hindi Teaching Scheme;

• Reviewing implementation of official language in the Bank and representing the Bank in various Committees of GoI.

• To ensure compliance to the directions of the President of India on the recommendations of the Parliamentary Committee on Official language, requirements of Annual Programme and assurances given to the committee of Parliament on Official Language during their visits and directions received from the Government of India from time to time.

Risk Monitoring Department

The Risk Monitoring Department (RMD) has been constituted for implementation of Enterprise-wide Risk Management System in the Reserve Bank. The department has three divisions looking after operational risks, financial risks, and IT and cyber risks. For effective identification, assessment and monitoring of risks uniformly throughout the Reserve Bank, RMD has been mandated:

• To prepare a broad risk monitoring framework and to formulate and to periodically review the Reserve Bank's policies/ methodologies/ matrices and to interact with functional units to ensure that all significant risks are identified.

• To aggregate, monitor and periodically report the risks reported by functional units to the Risk Monitoring Committee (RMC) and Audit and Risk Management Sub-Committee (ARMS).

• To assess and report the Economic Capital necessary so as to build provisions for various risks arising out of the Reserve Bank's policy actions.

• To undertake some of the mid-office functions for reserve management.

• To create institutional memory by building a database of 'loss' and 'near loss' events.

• To foster risk culture in the organization.

• To implement, review and operate Bank's Information Security Management System; monitor IT/cyber security processes; monitor cyber security events/ incidents; create cyber risk awareness across the organisation; promote IT/cyber security initiatives and to report on IT/cyber risk to the Top Management of the Bank.

Secretary's Department

Secretary's Section was one of the three units that formed part of the Central Office of the Bank in 1935, when the Reserve Bank of India commenced its operations. During the formative years, the Section dealt primarily with matters the Governor and the Central Board were directly concerned with, the management of public debt, ways and means requirements of Central and Provincial Governments and all matters affecting the policies of the Bank. Subsequently, in 1967 the Secretary's Section was upgraded into a full-fledged Department viz. Secretary's Department, keeping in view the volume and the complexity of the matters dealt with. Over the years, functions such as Public Debt Management and Press Relations were hived off from Secretary's Department.

The Department acts as the Secretariat to the Central Board and Committee of the Central Board (CCB). The Chief General Manager of the Department functions as the Secretary to the Central Board. The Department deals with all policy aspects related to the Central Board, its Committees and Sub-Committees, Local Boards and top management committees such as Senior Management Committee and Deputy Governors' Committee and their constitution, governance, systems, procedures and practices etc. and related statutory provisions and rules and regulations.

Central Vigilance Cell

The Reserve Bank of India’s Vigilance unit is under the overall charge of the Chief Vigilance Officer (CVO). The main function of the Vigilance Unit is to undertake preventive vigilance and anti-corruption measures as also investigate complaints /allegations having vigilance angle (as defined by the Central vigilance Commission) against the employees of the Bank. The Vigilance Unit also implements the various instructions issued by the Central Vigilance Commission (the Commission). Persons who are victims of corruption or have any information of corruption in the Reserve Bank of India may send their complaints to the CVO of the Reserve Bank by e-mail or by post to:

Smt. N Sara Rajendra Kumar
Chief General Manager & Chief Vigilance Officer
Reserve Bank of India
Central Office Building, 20^th floor
Shahid Bhagat Singh Road
Mumbai 400001
Telephone : 22671400

The Reserve Bank of India celebrates Vigilance Awareness Week, every year, as per directions of the Commission.

In order to create greater awareness and participation of the public at large, the Commission has envisaged a concept of “Integrity Pledge” to enlist support and commitment of the citizens and other corporates/entities/firms, etc., especially in the private sector, to prevent and combat corruption. The pledges are available on the Commission’s website https://pledge.cvc.nic.in.

Right to Information (RIA) Division

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.

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.

The Reserve Bank of India will, within 30 days of receipt of the application for information along with the fee, communicate to the requestor whether it can or cannot provide the information.

Right to Information Act (First Appellate Authority)

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.

You can address the appeal to:

Shri Aviral Jain
Executive Director
(First Appellate Authority)
Reserve Bank of India,
20^th Floor, Central Office Building,
Shahid Bhagat Singh Marg,
Fort, Mumbai – 400 001.
Email ID - aaria@rbi.org.in
Phone: 022-2270 2533

Right to Information Act (Alternate Appellate Authority)

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.

You can address the appeal to:

Shri Vivek Deep
Executive Director
(Alternate Appellate Authority)
Reserve Bank of India,
17^th Floor, Central Office Building,
Shahid Bhagat Singh Marg,
Mumbai – 400 001.
Email ID - aaria@rbi.org.in
Phone: 022-2261 4228