RBI Organizational Constitution

This article discusses the RBI organizational constitution and CAIIB central banking study material Nov 2023.

Central banking is one of the elective subjects of the CAIIB exam Nov 2023, which is held by IIBF twice every year. Central banking requires a lot of preparation which you don’t have to worry about because we will help you with our excellent CAIIB central banking study material for Nov 2023, which we will discuss later in this article. We will also start with our CAIIB Central banking YouTube classes in 2023 soon. First, we need to know a bit about central banking.

CENTRAL BANK

The generation and distribution of money and credit for a country or a group of nations are under the exclusive jurisdiction of the central bank, a financial organisation. In contemporary economies, the central bank is often in charge of formulating monetary policy and overseeing member banks.

The very nature of central banks makes them non-market or even anti-competitive institutions. Despite some being nationalised, many central banks are not part of the government and are therefore frequently hailed as being politically independent. A central bank’s rights are nevertheless established and safeguarded by law even though it is not the government’s property.

A central bank’s legal monopoly status, which grants it the right to print money and issue banknotes, sets it apart from other banks and is an essential characteristic.

Now that we are done discussing the central bank, we would like to move on to the rbi organizational constitution, in which we will talk about RBI’s brief history, constitution, and functions.

RBI BRIEF HISTORY

As the nation’s monetary authority, the Reserve Bank of India serves as its head. The majority of central banks as they exist now were founded in the early 20th century, making central banks a comparatively recent invention.

Based on the suggestions made by the Hilton Young Commission, the Reserve Bank of India was established. The Reserve Bank of India Act, 1934 (II of 1934), which established the Bank’s legal framework and date of operation on April 1, 1935, serves as the foundation for its operations.

The Reserve Bank of India had the intriguing quality that, from the beginning, people saw the bank as having a specific function to play in the context of development, notably agriculture. In the 1960s, when India began its plan endeavors, the Reserve Bank, in many ways, pioneered the idea and practice of leveraging money to catalyse development; the Bank’s development function came into sharper focus. To establish the nation’s financial infrastructure, the Bank also played a crucial role in the establishment of institutions like the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India, and the Deposit Insurance and Credit Guarantee Corporation of India.

RBI CONSTITUTION

The Governor serves as the Chair of the Board, which is created by co-opting four Directors from the Central Board as Members. Ex-officio members include the Reserve Bank’s Deputy Governors. The Vice-Chairman of the Board is typically one Deputy Governor, usually the Deputy Governor in charge of monitoring.

In accordance with Sections 11 and 12 of the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994, a Sub-committee of the Board for Financial Supervision was established in April 2018. The Sub-committee oversees and inspects Payments Banks, Small Finance Banks, Local Area Banks, Small Foreign Banks, Selected Scheduled Urban Co-operative Banks, Selected Non-Banking Financial Companies, and Credit Information Companies in accordance with the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949. The three Deputy Governors and two Central Board Directors serve on the Sub-committee, which is headed by the Deputy Governor in charge of monitoring.

RBI FUNCTIONS

The functions of the Reserve Bank of India are as follows:

Adjusting the Bank’s adopted supervision procedures for regulated businesses.
Introduction of an off-site monitoring technology to support on-site regulation entity supervision.
Strengthening the bank’s statutory audit procedures and expanding auditors’ responsibility in the supervision process.
Strengthening the internal defences of institutions under supervision, such as corporate governance, internal control and audit functions, management information and risk control systems, and a review of bank housekeeping.
Introduction of a rating system for financial institutions and banks under supervision.
Program of technical support for cooperative banks.
Launching the Prompt Corrective Action Framework for Weak Banks programme.
Advice on the framework for fraud risk management in banks.
The implementation of risk-based bank oversight.
The creation of a framework for bank enforcement.
Creation of a credit registry for major borrowers from institutions under supervision.
Establishing a subsidiary of the Reserve Bank to handle the IT requirements, such as the Reserve Bank’s and its regulated firms’ demands for cyber security, etc.

Having said that, we will move on to the CAIIB Central Banking Study Material Nov 2023.

CAIIB CENTRAL BANKING STUDY MATERIAL NOV 2023

CAIIB exam Nov 2023 is soon approaching, and our experts are trying to compile this fantastic Central Banking study material 2023. It will be one of the best Study Material in the market available to the candidates. CAIIB Central Banking material Nov 2023 is updated according to the latest CAIIB Central Banking syllabus Nov 2023. Our CAIIB Central Banking study material Nov 2023, which is being prepared includes:

We are preparing the video lectures which you will be able to download offline and watch at your convenience and will be available soon.
Live sessions will also be available when we are done preparing them, but you won’t be able to download them.
Classes are going to start on YouTube, the dates for the same will be released soon.
These lectures will be a mixture of Hindi and English languages for your better understanding.
Along with these lectures, complimentary short and easy notes in the form of ePDFs will be available soon.

One more thing we want you to keep in mind is that all these things about CAIIB central banking study material 2023 are provisional and liable to change. All the announcements regarding study material and classes would be made as soon as we are done preparing the Central Banking study material 2023. Kindly stay tuned for all the updates.

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RBI ORGANIZATIONAL CONSTITUTION | CENTRAL BANKING EXAM