The bank of all the banks, RBI is one of the major pillars of the Indian economy. Being accountable for making major decisions for the Indian economy, RBI cannot leave any scope of malfunctioning or inefficiency. Along with managing the efficiency and operation of all the banks of India, RBI also have to ensure the efficient operation within the organization. We all hear so much about RBI and its functions, but how RBI maintains its operational efficiency is the bigger question. Creative effective banking guidelines and efficient monetary policies only become possible because of the collaborative efforts of multiple departments of the Reserve Bank of India (RBI).
RBI plays an important role in the Indian economy thus; it is important for it to maintain that level of productivity. For that matter, it also conducts various recruitment drives every year to hire the best personnel for its multiple departments. The RBI Grade B, RBI DSIM, RBI DEPR, RBI Assistant, RBI Rajbhasha and many more are some of the roles for which RBI hires every year. This happens for the smooth functioning of the organization.
In this blog, we are going to discuss the multiple departments of RBI and their dedicated functions. This will help you understand how RBI maintains its organizational efficiency. This is also going to be beneficial for your competitive Exam’s point of view. Thus, we recommend you read this blog till the end to get the best out of it.
Various Departments of RBI
There are a total of 25 departments of RBI playing various roles to maintain organizational efficiency within RBI.
Department of Currency Management (DCM)
This Currency management department is responsible for the long term requisites of the currency like the demand for currency that needs to be printed in a specific financial year, how much currency needs to be circulated in the market, tracking fake currency, disposing of the exploited currency that comes back to RBI and the storage of currency. These are some of the things managed by this department.
Department of Economy Policy and Research (DEPR)
The DEPR works around conducting financial research and relevant data collection on the national and international levels. It also issues various financial reports to maintain transparency about the monetary policies of RBI. The research done by this department also helps in making or optimizing the monetary policies of RBI and other financial decisions.
Department of Rajbhasha
The RBI Rajbhasha Department is responsible for promoting the use of the Hindi Language in the Bank’s official works based on the provisions given in the Constitution of India and the Official Languages Act, 1963. This department ensures the use of the Hindi language for various official work like, submitting reports, etc. Another function of this department is to translate all the statutory documents of RBI in Hindi Language like Trends reports, Bank’s annual reports etc.
Department of External Investments and Operations (DEIO)
The DEIO department acts as a representative of the Government of India while communicating with international associations like IMF, SAARC, Asian Credit Union etc. This department also looks after the maintenance and investment decisions of the Gold Reserve and Foreign Exchange Reserve.
Department of Enforcement
Established in April 2017, the Enforcement Department is responsible for fines for banking violations. It ensures the consistent application of institutional rules for the stability of the financial system and the protection of consumers. The segment includes commercial banks, mutual funds and non-bank financial companies. It issues cause-and-effect reports, provides an opportunity to be heard, and adjudicates cases. However, current rulemaking applies only to organizations, not individuals, and does not directly address consumer complaints. Enforcement actions are communicated through press releases and RBI publications.
Department of Payment and Settlement
The Dept of Payment and Settlement manages the flow of financial services across the nations. For example, the payment style of Indian citizens has evolved in the last 8 years, thus, to encourage and facilitate the digital payment system, RBI will ensure the issuance of essential financial services to people through secure transaction facilities and fair payment platforms. This department was established in 2005 and in 2007, the Payment and settlement act has been initiated giving this department the authority to look after all the financial services throughout the country.
Department of Banking Regulations
The Department of Banking Regulations is the major dept of RBI, it is also called the Muscle power of RBI. This department looks after making baking policies for all types of banking, from commercial banks to nationalized banks, every banking guideline is issued by this department. All the instructions and banking guidelines followed by all the banks of this country are issued by the Dept of Banking and Regulations.
Department of Supervision
The Department of Supervision looks after the adherence to banking policies made by the Dept of Banking Regulations. This dept is accountable for inspecting the banks to analyze the adherence of the banking policies. The inspection is done through two ways i.e., Offsite and Onsite. For the offsite inspection, this dept collects some banking data and ensures the policy adhesiveness in the banks. On the other hand, in onsite inspection, a team from this dept visits banks, only Rural Cooperative banks and Housing Finance Companies are exempted from the onsite inspection but the guidelines are controlled by RBI only. At the end of every inspection, this dept makes reports and rates the banks according to that.
Department of Issuance
This Dept primarily focuses on the issuance of the currency in the market. It ensures fair monetary transactions in the country assigned to the 14 circles. Among those 14 circles, each branch has its own cash and general department to facilitate the currency issuance process.
Department of Banking
This department looks after several banking services for the government and other banks. There are 4 sub divisions of this department, Public Debt Dept, Public Accounts Dept, Securities Dept, and Deposit Account Dept. All the branches of this department are headed by Deputy manager.
Department of Government and Bank Accounts
This Department of Government and Bank Accounts majorly focuses in handling and maintaining the accounts of banks in the banking and issuing department. It maintains weekly records of balance and also annual profit and loss accounts of the bank’s accounts. The Department is headed by the Chief Accountant.
Department of Budgetary Control and Expenditure
This department is dedicated to monitoring of the budget and other expenditures of various units. The budget for every unit is settled by this department only and other decisions related to any expenditure also come under this department. The expenditure or budget of the unit may include decisions related to the requirements of the unit. This department is headed by the financial controller.
Department of Exchange Control
The role of the Department of Exchange Control revolves around stabilizing the Foreign Exchange rate in the market. It maintains the foreign exchange rate and controls the foreign exchange. It takes all the necessary measures required in the monetary policies and other investments to influence the foreign exchange rate in favor of the economy.
Department of Industrial Credit
The role of the Department of Industrial Credit revolves around credit required by the industrialists. The task of this department is to give small scale industries access to various credit guarantee schemes. The department administers all the processes of the credit related activities to various industries and also ensures fair credit transactions. They act as a representative of the Government of India. Also works closely with the Industrial Development Banks of India (IFBI) and collects data about the financing of small scale industries to evaluate the relevant problems.
Department of Agricultural Credit
The Department of Agricultural Credit plays a major role in establishing a strong root of credit structure in rural financing, and also supplements the financial resources of state cooperative banks to provide financial assistance to state Governments. This department also acts as a creator of Agricultural and rural credit policies for all commercial banks and coordinates the long term credit activities of state land development banks. However, after the formation of NABARD, all the operations related to the Agricultural credits shifted there. Now the role of this department is to look after the supervision of urban cooperative banks.
Department of Rural Planning and Credit
This department is one of the oldest departments of RBI established in 1982. It is formed to manage the RBI’s policy on rural development. The Department of Rural Planning and Credit is Responsible for the district credit plans, lead bank scheme, provision of expert guidance and sanctioning general guidelines for short term advances to NABARD.
Department of Non Banking Companies
The Department of Non Banking Companies looks after the supervision and policy regulation of Non-Financial Banking companies like Insurance companies, Pension funds, Investment banks etc.
Department of Credit Planning Cell
The Department of Credit Planning and Banking Development Cell was set up with the objective of monitoring credit policies through a critical approach. This department is also responsible to work for the improvement and betterment of commercial banking. It also plays a major role in the planning of the monetary budget on a macro level.
Department of Statistical Analysis and Computer Services
The role of the Department of Statistical Analysis and Computer Services revolves around collecting data regarding the banking industry from several resources for operational purposes. It collects, generates, process and compiles statistical data through research and other ways and use it for curating and optimizing relevant policies for organizational benefits.
Department of Legal and Inspection
The Legal department of RBI, as the name suggest looks after the inspection of various RBI departments and offices. It also analyses the legal actions required for the issues addressed by the RBI itself.
Department of Administration and Personnel
The Department of Administration and Personnel works for the employees of RBI. This department looks after all the events related to training, placement promotion, transfer, discipline, grievances, service conditions, wage structure etc. In order words, we can also say that this is the Human Resource department of RBI.
Department of Premises
The Department of Premises looks after fulfilling the infrastructural requirements of bank offices, staff quarters, training institutes and other associated buildings. All the decisions regarding the office premises, new branch office establishment, and all the approval and proceedings get initiated from this department only.
Department of Management Services
It is basically concerned with organisational analysis, systems research and development, work procedure studies and codification, manpower planning, costing studies, etc.
Department of Secretary
The Department of Secretary plays a major role in creating a bridge of effective communication within the RBI. It looks after all the secretarial work related to the meetings of Central Board and the committee. This department also administers the Provident Fund and Cooperative Guarantee Fund of RBI Employees
Central Vigilance Cell
Headed by the Chief Vigilance Officer (CVO), this department primarily focuses in the restriction of corruption in the banks by its employees. It takes necessary preventive measures for anti-corruption and also investigates the complaints and allegations that has a probability of vigilance. This department also implements instructions set by the Central Vigilance Commission. Furthermore, people can inform this department about potential case of corruption in RBI.
Right to Information Division
This department ensures the accountability of transparency of RBI towards the citizens of India. According to the RTI Act, 2005, it has to give information to the public. As per the Central Information Commission, RBI is obliged to respond to any asked information within 30 days of receiving it. Furthermore, if the applicant is not satisfied with the information provided by the Reserve Bank or if the RBI refuses to give the information an applicant can appeal under the Right to Information Act, 2005.
Department of Risk Monitoring (RMD)
The Department of Risk Monitoring is dedicated to managing enterprise wide risk. It also oversees the various types of risk in RBI like Financial, IT and Cyber risks. The RMD is accountable for creating a risk monitoring framework like reviewing policies, reporting risks, assessing economic capital, recording loss events etc. This department ensures the identification of upcoming or potential risk in the organization and also promotes ways to avoid them. The department also works to create awareness about cybersecurity and report it to the top management.
International Department
The International Department of RBI looks after international financial matters diplomacy. It cooperates with the top management in international forums like BRICS, SAARC etc. The major function of this department involves facilitating international relationships and technical cooperation with central banks of other countries. It also states the take of RBI on Global Issues. The dept also conducts research on International economic matters that require coordination of Indian ministries and internal banking departments.
Department of Information Technology
The IT department is critical to RBI’s operations, with a focus on digital processes for efficiency and transparency. It aims to digitize information, improve services and meet legal obligations. The plan includes modernizing the architecture, adopting new technologies, ensuring efficiency and strengthening governance standards. It functions under the Information Technology Sub-Committee and looks after important payment systems like NEFT and RTGS, policy formulation, internal application maintenance and information security along with RBI subsidiaries, IFTAS and RABITS.
Department of Communication
The origins of the Department of Communications can be traced back to the Book and Magazine Relations Department of the then Ministry of Finance in the 1960s. Recognizing the wide range of activities of the Reserve Bank and its agencies and the need for good reporting and public relations, the Office of the Press Relations Officer was converted into a full-fledged Press Relations Department in March 2007. The present communication channels used by this dept 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.
Conclusion
If you have read this blog till here, then you must have got an idea about the enormity of RBI and its department. As said earlier, RBI, being the major pillar of the economy, cannot leave any scope of malfunctioning or inefficiency. Thus, these departments make RBI what it is. The smooth functioning, organized management and operational structure is possible only through the cooperation of all these departments. If you are an aspirant, then this blog is going to help you a lot in the general awareness section of many exams and especially RBI. We always come up with such blogs to give you an in-depth knowledge about everything that surrounds you. At ixamBee, knowledge never ends. Stay tuned for more insightful information about various national and international topics.
