RBI is the central bank of India and regulates the supply of money in the country. To regulate this supply and various other policies, RBI has dedicated various departments. Thus, these departments are responsible for the work that goes around in the RBI. Thus, these departments help in organizing and smoothening of the functions in the RBI. In total, there are 23 departments in the RBI. Below are the departments of RBI.
Departments of RBI
This department is concerned with the activities related to the issuing of money. So, for the proper conduct of the monetary transactions in the country, there are 14 circles which have been given the task of issuing. Besides this, each of these branches has the cash department and the general department.
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This department handles the various bank’s service for the government as well as the other banks. Thus, there are 4 sub-divisions to this department.
They are public debt department, public accounts department, securities department, and deposit accounts department and Joint or deputy manager heads the branches of the banking department.
Learn more about Reserve Bank of India here in detail.
Currency Management Department
This department is responsible for forecasting the long-term requirements of the currency and subsequently allocating it to the various other branches. Thus, it takes into account the storage facilities, demand pattern, etc. The Chief officer heads this department.
Government and Bank Accounts Department
The main task of this department is to handle and maintain the various bank’s accounts in the banking and issuing departments. Thus, it compiles weekly statements and the balance and annual profit and loss account and the chief accountant head this department.
Budgetary Control and Expenditure Department
Under this department, the bank’s budget and various expenditures are monitored for the different units. Also, this department is headed by the financial controller.
Department of Exchange Control
This department is responsible for maintaining the exchange rate and controlling the foreign exchange. Also, they try to stabilize the exchange rate.
Department for Industrial Credit
This department as the name suggests is related to the credit-related activities of the industries. So, their primary task is to provide various credit guarantee schemes for the small-scale industries and looking after their administration.
Thus, they work in tandem with the government of India, SFCs, and industrial development bank of India (IDBI). Because their task is to collect data about the finances of the small-scale businesses and other related problems.
Banking Operations and Development Department
This department looks after the commercial banks in India. They control, supervise, develop these banks. Earlier it was also related to bank credit and lead bank scheme for the priority sectors.
Agriculture Credit Department
Under this department, the care is taken for various credit schemes in rural financing, providing financial resources to various co-operative banks.
It also provides the required financial assistance to the state governments to improve their financial structure.
Further, it formulates the policies for commercial banks and coordinates with the long-term activities for the state land development banks.
With the formation of NABARD, all the agriculture credit-related activities are now shifted towards the new institution. Because the only exception is the supervision of the operations for the urban cooperative banks.
Thus, the control and supervision are shifted to the development and banking operations department for the PCBs.
Non-banking Companies Department
The primary task of this department is to regulate the deposits related to non-banking financial companies. Further, it also controls and administers companies.
Credit and Rural Planning Department
This is one of the oldest departments in the RBI. Also, it was established in the year 1982 and is concerned with the issues like lead bank scheme, credit plans for the district, provision for the expert assistance, processing the credit line for short-term loans the NABARD, and putting forward the policies for reserve bank regarding rural India.
Economic Policy and Analysis Department
This department handles the economic reviews and research for banking and financial conditions of the country.
Also, it comprises majorly of 5 units, international financial unit, internal finance unit, general unit, analysis of national economic parameters unit, and prices, general, and production unit.
They are in charge of preparing the annual report of the bank. Further, they prepare a report on progress and trend of banking in India. Besides this, the department produces a report on finance and currency and the bulletins for RBI.
Computer Services and Statistical Analysis Department
This department as the name suggests collects, generates, process, and compiles the statistical data related to the financial and banking sectors. Thus, it collects the data from the operational point of view of the RBI.
Legal and Inspection Department
The inspection department carries out the inspections of the various departments and offices of the RBI. For the legal advice on various issues referred by the RBI, the legal department is responsible.
Q. In which year was the RBI established?
A. 1972 B. 1940 C. 1935 D. 1945
Answer: C. 1935
Q. The paper currencies in India are
A. in the circulation by the Issue Department of RBI.
B. the liabilities for the banking department of the reserve bank
C. liabilities of Issue department in RBI
D. None of the above
Answer: A. in the circulation by the Issue Department of RBI.