Friday, December 2, 2011
Reserve Bank of India - India's Central Bank and Its Various Departments
Indian banks are of two types: Public sector and private Sector. All these banks, both public and private are regulated by The Reserve Bank of India. It is India's Central Bank. The Reserve bank of India formulates many policies for the smooth functioning of the banking System in India. The most crucial part, i.e., determining the currency exchange rate is also a function of the Reserve bank of India. The reserve bank of India, to say is like the backbone of Indian Economy. It is the duty of reserve bank of India to maintain the stability and robustness of Indian Banking system.
The Reserve bank does this task with the help of various departments:
CUSTOMER SERVICE DEPARTMENT:
The customer service department provides proper focus on the customer service related to the bank in the following ways:
1. Dissemination of Instructions relating to customer service.
2. Solving of the Grievances of the customer.
3. Solving the complaints given by customers.
DEPARTMENT OF CURRENCY MANAGEMENT:
It is related to currency of India:
1. Printing of notes and making of coins.
2. Release of adequate amount of currency into circulation.
3. Exchange of mutilated bank notes of customers with good notes.
URBAN BANKS DEPARTMENT:
It looks after Primary Cooperative banks. Its functions are of three types:
The Reserve Bank of India carries on many surveys and inspections on these Urban Cooperative banks and issues circulars to them if found necessary. Reserve Bank of India also looks after the development of these Urban Cooperative banks.
RURAL PLANNING AND CREDIT DEPARTMENT:
This department looks after formulating policies for catering the needs of the rural areas including agricultural and rural employment programmes.The department:
1. Monitors credit to rural, agricultural and small scale industries.
2. Frames policies on priority sector lending.
3. Gives Financial and policy support to NABARD.
4. Acts as regulators for regional rural banks and cooperative banks.
5. Monitors implementation of government sponsored poverty alleviation schemes.
FOREIGN EXCHANGE DEPARTMENT:
This department facilitates the external trade and payment promoting orderly development and maintenance of foreign exchange and market in India. This department also takes care regarding investment of NRI people.
HUMAN RESOURCES DEVELOPMENT DEPARTMENT:
This department's functions are:
1. To create an enabling environment to enhance efficiency of the organization.
2. Get the best work from the staff by giving them good incentives, salaries and allowances.
3. To provide a sense of moral support to the staff showing that the bank is with them to take care of their well-being.
4. Recruitment of new staff.
5. Promotion and career progression.
6. Industrial relations.
7. Retirement and voluntary vacation.
10. Remuneration and Reward Mechanism.
And several other functions.
FINANCIAL MARKETS DEPARTMENT:
It looks after:
1. Monetary operations such as open market operations, market stabilization schemes, etc.
2. Exchange rate management.
3. Monitoring of Money, government securities and Forex markets.
FINANCIAL STABILITY UNIT:
1. Conducts surveys of the financial system.
2. Prepares financial stability reports.
3. Develops a set of financial indicators.
4. Conducts systemic stress tests to assess resilience.
5. Development of models for assessing financial stability.
It conducts inspection on the lower banks and gives a feedback to the higher authority so as to increase the quality of service provided by these banks. This department is organized into:
1. Planning Section.
2. Follow up section.
3. Audit monitoring cell.
4. IS Audit section.
5. Inspection and Adult subcommittee system.
6. Administration section.
7. Inspection Teams.
DEPARTMENT OF INFORMATION TECHNOLOGY:
It attends to:
1. Computerization in Reserve bank of India. (Regional Offices and Central Office Departments).
2. Design and development of projects for use of banks and financial institutions.
3. Monitoring progress of technology in banks.
The department looks after drafting of legislative matters concerned to banking and finance.
Along with the above mentioned departments many more other departments like Department of payment settlement, Department of Debt management, etc. All of them function for the proper functioning of the Banking System in India and thereby giving it stability and robustness.
Reserve Bank takes care of the Indian banking sector. Mr. Mukherjee likes to write on various topics including vacancy in banks 2012 and other topics related to banking system in India.