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Structure of RBI

The organization of RBI can be divided into three parts:
1) Central Board of Directors.
2) Local Boards
3) Offices of RBI

1.Central Board of Directors :
The organization and management of RBI is vested on the Central Board of Directors. It
is responsible for the management of RBI.Central Board of Directors consist of 20
members. It is constituted as follows.
a)One Governor: it is the highest authority of RBI. He is appointed by the Government of
India for a term of 5 years. He can be re-appointed for another term.
b)Four Deputy Governors: Four deputy Governors are nominated by Central Govt. for a
term of 5 years
c)Fifteen Directors :Other fifteen members of the Central Board are appointed by the
Central Government. Out of these , four directors,one each from the four local Boards
are nominated by the Government separately by the Central Government.

Ten directors nominated by the Central Government are among the experts of
commerce, industries, finance, economics and cooperation. The finance secretary of the
Government of India is also nominated as Govt. officer in the board. Ten directors are
nominated for a period of 4 years. The Governor acts as the Chief Executive officer and
Chirman of the Central Board of Directors. In his absence a deputy Governor nominated
by the Governor, acts as the Chirman of the Central Board. The deputy governors and
government’s officer nominee are not entitled to vote at the meetings of the Board. The
Governor and four deputy Governors are full time officers of the Bank.

2. Local Boards :
Besides the central board, there are local boards for four regional areas of the country
with their head-quarters at Mumbai, Kolkata, Chennai, and New Delhi. Local Boards
consist of five members each, appointed by the central Government for a term of 4 years
to represent territorial and economic interests and the interests of co-operatives and
indigenous banks. The function of the local boards is to advise the central board on
general and specific issues referred to them and to perform duties which the central
board delegates.

3. Offices of RBI:
The Head office of the bank is situated in Mumbai and the offices of local boards are
situated in Delhi, Kolkata and Chennai. In order to maintain the smooth working of
banking system, RBI has opened local offices or branches in Ahmedabad, Bangalore,
Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur,
Nagpur, Patna, Thiruvananthpuram, Kochi, Lucknow and Byculla (Mumbai). The RBI can
open its offices with the permission of the Government of India. In places where there
are no offices of the bank, it is represented by the state Bank of India and its associate
banks as the agents of RBI.