Current Structure and Organization of the RBI

Central Board of Directors

The Central Board of Directors is the apex governing body of the RBI. It is constituted under the RBI Act, 1934, and is appointed/nominated for a term of four years. The Board comprises both official and non-official directors:

• Governor: Heads the RBI as its Chief Executive. Chairs the Central Board and is the principal policymaker. (Tenure is usually 3-5 years, eligible for reappointment).
• Deputy Governors (up to 4): Full-time official directors who assist the Governor in specific domains (e.g. regulation, monetary policy, supervision, etc.). (At any time, a maximum of four Deputy Governors can be appointed.)
• Government Nominees: Ten directors from various fields (finance, industry, etc.) nominated by the Central Government (usually for 4-year terms), plus two officials from the Ministry of Finance. These are non-official, part-time directors representing the Government and public interests.
• Local Board Representatives: Four directors (one from each of the RBI’s four Local Boards) are also members of the Central Board, representing Eastern, Western, Northern, and Southern regions.

Functions: The Central Board provides overall policy direction and superintendence of the RBI’s affairs. Important decisions on currency issue, credit policy, banking regulation, etc., are approved by the Board. In practice, the Board delegates many operations to committees and to the executive management (Governor and Deputy Governors).

Local Boards of RBI

For each of the four geographical zones (North, South, East, West), the RBI has a Local Board headquartered in New Delhi, Chennai, Kolkata, and Mumbai respectively. Each Local Board consists of 5 members appointed by the Central Government for four-year terms. These Local Boards advise the Central Board on regional matters and represent local banking and economic interests, especially of cooperative and indigenous banks. They also perform functions delegated by the Central Board from time to time. Over the period, functional importance of local boards has somewhat declined with technological advancements and centralization of decision-making.

Organizational Hierarchy (from Governor to Grade A)

Internally, the RBI’s officer cadre follows a hierarchical structure from the top (Governor) down to entry-level Grade ‘A’ officers. The career progression/organizational hierarchy is as follows:

• Governor – Top executive authority (Grade of Secretary to Govt. of India equivalent).
• Deputy Governors – (Max 4) Senior executives heading broad functional areas (equivalent to Additional Secretary rank).
• Executive Directors (ED) – Heads of major departments or functional clusters; report to Deputy Governors.
• Principal Chief General Manager (PCGM) – (If applicable, a senior-most CGM in certain large departments).
• Chief General Managers (CGM) – Grade F officers heading important departments or regional offices.
• General Managers (GM) – Grade E officers managing departments or large divisions.
• Deputy General Managers (DGM) – Grade D officers assisting GMs in department management.
• Assistant General Managers (AGM) – Grade C officers, often section heads or team leads.
• Managers – Grade B officers (direct recruits at this level are called Grade B Officers).
• Assistant Managers – Grade A officers (entry-level Gazetted officers of RBI).

Note: Below the Grade ‘A’ officers, RBI also employs Support Staff in classes B/C (e.g., Assistants, who are clerical staff recruited separately, and class IV staff for subordinate roles). Grade ‘A’ and above are officer cadre positions. An RBI Grade B officer (Manager) can rise through promotions over years to higher grades and even up to Deputy Governor in many cases.

Office Network of the RBI

• Headquarters: The RBI’s central office (headquarters) is in Mumbai – this is where the Governor sits and policy is formulated. (The Central Office was originally in Kolkata and moved to Mumbai in 1937)
• Regional & Local Offices: RBI functions countrywide through a network of offices. As of 2026, RBI has 19 regional offices and total of 11 sub-offices, bringing the total number of offices to 30, with a presence in a total of 34 locations across India (including training centers). The number of sub-offices increased from nine to eleven with the addition of Aizawl and Imphal recently.
• The 19 regional offices are located in Ahmedabad, Bengaluru (Bangalore), Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.
• The 11 sub-offices are located in Agartala, Aizawl, Dehradun, Gangtok, Imphal, Panaji, Raipur, Ranchi, Shillong, Shimla and Srinagar.
• Regional offices act as the operational arms of RBI – handling currency distribution, banking supervision, financial market operations, and public interface in their regions. Sub-offices in smaller cities support currency operations or specific regional tasks.
• Zonal Offices & Local Boards: The 19 regional offices are often grouped into the four zones (North, South, East, West) corresponding to the RBI’s four Local Boards. Each zone’s activities are guided by a Local Board (as described above) to ensure regional perspectives in the central bank’s functioning.

Major Departments of RBI and Their Functions

The RBI’s day-to-day functions are carried out through numerous specialized departments, each handling a specific domain of central banking. Some of the major departments and their core functions are:

• Monetary Policy Department (MPD): Formulates and implements monetary policy (e.g., setting interest rates, CRR/SLR) to achieve price stability and economic growth. It provides support to the Monetary Policy Committee and conducts economic analysis for policy decisions.
• Department of Banking Regulation (DBR): Frames regulations for banks and NBFCs – licensing of banks, prudential norms (capital adequacy, NPA norms), branch expansion, and enforcement of the Banking Regulation Act. (Since a 2019 reorganization, many of these functions fall under a unified Department of Regulation, but it is often still referred to in exam texts as DBR.)
• Department of Banking Supervision (DBS): Oversees the health of banks and certain financial institutions – conducts inspections, audits, monitors risk management, and ensures compliance with RBI’s regulatory guidelines. (Post-2019, bank and non-bank supervision are under an integrated Department of Supervision).
• Financial Markets Operations Department (FMOD): Manages liquidity in the economy and implements monetary policy in money markets. It conducts open market operations (OMO), manages government securities auctions, and intervenes in the forex market as needed.
• Department of Currency Management (DCM): Manages the design, printing, and supply of currency notes and coins. It oversees currency chests, distribution of new notes/coins, and withdrawal of unfit notes, ensuring adequate cash supply nationwide.
• Foreign Exchange Department (FED): Regulates and facilitates foreign exchange transactions under the FEMA, 1999. It manages forex reserves, licenses money changers, and formulates policies for external trade and payments.
• Department of Economic and Policy Research (DEPR): RBI’s research wing – conducts economic research, publishes key reports (like RBI Bulletin, annual report, State of Economy reports), and provides data and analysis for policy formulation.
• Financial Inclusion and Development Department (FIDD): Promotes financial inclusion, rural credit, and development banking. It oversees priority sector lending policies, leads schemes for rural banking (e.g., Lead Bank Scheme), and supports initiatives for inclusive access to financial services.
• Department of Payment and Settlement Systems (DPSS): Oversees the regulation and development of safe and efficient payment systems – such as NEFT, RTGS, UPI, card networks, ATM networks, etc.. DPSS formulates policies for digital payments, licenses payment system operators, and fosters fintech innovations while ensuring security.
• Department of Statistics and Information Management (DSIM): Collects, compiles, and analyzes statistical data on banking, economy, and corporate finances. It manages databases and provides statistical support for policy making; it also conducts surveys like household consumer confidence, inflation expectations, etc.
• Consumer Education and Protection Department (CEPD): Deals with consumer protection in the financial sector. It handles the Banking Ombudsman and other ombudsman schemes for NBFCs and digital transactions, addresses public grievances against entities regulated by RBI, and spreads financial literacy.
• Inspection Department: Conducts internal inspections of RBI’s own offices and also coordinates statutory inspections of banks (often overlapping with supervision). Ensures that RBI’s regional offices and departments adhere to internal guidelines and that supervised institutions rectify issues flagged in inspections.
• Human Resource Management Department (HRMD): Manages recruitment, training, promotions, and welfare of RBI’s staff. It oversees performance appraisals, transfers, staff benefits, and runs RBI’s training establishments.

Each department is headed by a senior officer (often a Chief General Manager or an Executive Director) who reports to the concerned Deputy Governor or the Governor. This departmental structure allows the RBI to specialize and efficiently handle its diverse functions ranging from monetary policy and bank regulation to currency issuance and payment systems oversight.

Key Committees and Statutory Boards in RBI Governance

To assist in specialized policy-making and oversight, RBI has constituted several key committees/boards.

Monetary Policy Committee (MPC)

The MPC is a statutory committee created in 2016 (by amending the RBI Act) to decide the policy interest rate (repo rate) for monetary policy. It has six members – three RBI officials (the Governor as Chair, the Deputy Governor in charge of monetary policy, and one more RBI executive) and three external experts appointed by the Government. Decisions are taken by majority vote, and in case of a tie the Governor has a casting vote. The MPC meets at least 4 times a year (bi-monthly) and publishes the MPC resolution after each meeting. This framework has brought transparency and collective decision-making to interest rate setting in India.

Payments Regulatory Board (PRB)

The PRB is a new statutory body (operationalized in 2025) through which RBI exercises regulation and supervision over payment and settlement systems. It was established under the amended Payment and Settlement Systems Act, 2007, replacing the earlier Board for Regulation and Supervision of Payment Systems (BPSS). The PRB is a six-member board chaired by the RBI Governor and includes the Deputy Governor (payments) and members nominated by the Government and experts in payments/technology. It oversees the authorisation of payment system operators, sets standards for digital payments, and works to ensure the safety, efficiency, and stability of payment systems in India.

Board for Financial Supervision (BFS)

The BFS (constituted in 1994) is a committee of the Central Board that focuses on the supervision and regulation of financial institutions. Chaired by the Governor, it typically includes a few Central Board Directors and the Deputy Governors as members. The BFS meets regularly (usually monthly) to review inspection reports of banks, NBFCs, and other entities, and to issue directions on regulatory and supervisory matters. It aims to strengthen the quality of bank audits and internal controls, and oversees the working of supervisory departments (like DBS, DNBS etc.). The BFS thus acts as a dedicated oversight arm of the Board to ensure the soundness of the banking and financial system.

(Other committees of the Central Board include the Committee of the Central Board (CCB) for routine administrative matters, the Audit and Risk Management Sub-Committees, among others. Additionally, at the government level, the RBI Governor is part of the Financial Stability and Development Council (FSDC) which coordinates all financial sector regulators.)

RBI’s Key Subsidiaries

The RBI has set up several wholly-owned subsidiaries to handle specific functions. The major subsidiaries of RBI are:

• Deposit Insurance and Credit Guarantee Corporation (DICGC): Established 1978, it provides deposit insurance for bank depositors, insuring deposits up to a prescribed limit (currently ₹5 lakh) in commercial banks, RRBs, co-operative banks, etc.. In case a bank fails, DICGC compensates depositors to instill confidence in the banking system. (It was originally two entities for deposit insurance and credit guarantee that later merged into one.)
• Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL): Established 1995 as RBI’s note printing company. It operates two major currency printing presses (in Mysuru and Salboni) to print banknotes as per RBI’s designs and indents. BRBNMPL, along with Govt-owned presses, ensures sufficient supply of currency notes and also makes other security products.
• Reserve Bank Information Technology Pvt. Ltd. (ReBIT): Established in 2017 (fully owned by RBI) to serve the IT and cybersecurity needs of RBI and the Indian banking industry. ReBIT focuses on strengthening cyber defense, developing and auditing IT systems for RBI, and supporting initiatives like data analytics, FinTech integration, and IT project management for the central bank. It enhances the tech resilience of RBI and regulated entities.
• Indian Financial Technology and Allied Services (IFTAS): Incorporated in 2015 (wholly owned by RBI) as a technology services arm for the financial sector. IFTAS designs, deploys, and manages critical IT infrastructure for India’s banking and payments system. Notably, it operates the RBI’s financial networks – it manages INFINET (Indian Financial Network) which connects banks, and SFMS (Structured Financial Messaging System) used for NEFT/RTGS, and the Indian Banking Community Cloud. In essence, IFTAS provides the backbone for digital inter-bank communication and payments.
• Reserve Bank Innovation Hub (RBIH): Incorporated as a Section-8 (non-profit) company in 2022, RBIH is a wholly-owned subsidiary aimed at promoting financial innovation. Headquartered in Bengaluru with initial capital of ₹100 crore, RBIH works to create an ecosystem for innovative fintech solutions, focusing on areas like financial inclusion, digital lending, regtech, and cybersecurity. It brings together stakeholders (banks, startups, tech firms, academia) to collaborate on new ideas, run incubator programs, and develop prototypes for the financial sector. (The RBIH is also involved in projects like the Central Bank Digital Currency (Digital Rupee) development.)

Note: RBI formerly had other subsidiaries: e.g. National Housing Bank (NHB) (1988) and NABARD (1982) were established by RBI, but today NHB and NABARD are under government ownership and are not RBI subsidiaries. The four listed above (plus RBIH) are the current principal subsidiaries.)

Training and Affiliated Institutions

RBI has also set up or funded several institutions for training, research, and development in the banking and financial sector. These include:

Reserve Bank Staff College (RBSC), Chennai

An RBI training college for its officers, established to impart foundational and mid-career training to RBI staff and officers from other banks. RBSC conducts programs on central banking, regulation, supervision, etc., for RBI Grade A to C officers. (It is one of the three training colleges of RBI.)

College of Agricultural Banking (CAB), Pune

RBI’s training college specializing in rural, cooperative, and agricultural banking. It trains officers of RBI, commercial banks, and cooperative banks in areas of priority sector lending, rural credit, financial inclusion, and related policies. (Established in 1969, CAB is another of RBI’s main training institutes.)

RBI Academy, Mumbai

A newer training establishment in Mumbai for newly recruited Grade B officers and specialized training programs. (Along with RBSC and CAB, it completes the trio of RBI’s officer training colleges.)

National Institute of Bank Management (NIBM), Pune

An autonomous academic institute founded by RBI in 1969. NIBM provides education, training, and research in bank management, finance, and economics. It offers residential programs (including a Post-Graduate Diploma in Banking and Finance) and is a key policy research center for banking strategy. (NIBM is run with RBI’s support and the RBI Governor is often the Chairman of its Governing Board.)

Institute for Development and Research in Banking Technology (IDRBT), Hyderabad

Established by RBI in 1996, IDRBT is a unique institute focused on banking technology research and development. It works on areas like secure banking networks, digital payment technology, cybersecurity, and IT training for bankers. (Many innovations like the UPI concept, INFINET network, etc., have roots in IDRBT’s work.)

Indira Gandhi Institute of Development Research (IGIDR), Mumbai

A deemed university and advanced research institute set up by RBI in 1987. IGIDR conducts Ph.D. and M.Sc. programs in economics and related fields. It contributes to policy research on developmental issues, economics, and finance. RBI fully funds this institute, and it serves as a think-tank for economic policy.

Centre for Advanced Financial Research and Learning (CAFRAL), Mumbai

An independent research and training institute established by RBI in 2011, in the backdrop of India’s growing global financial role. CAFRAL’s mandate is to conduct high-quality research in banking and finance and provide executive training to senior bankers, regulators, and policy makers. It regularly hosts conferences and seminars for top management of banks and central banks. The RBI Governor chairs its governing council, and it aims to be a global center of excellence in financial policy research and learning.

Others

The RBI also co-promotes or funds institutions like the Indian Institute of Bank Management (IIBM, Guwahati) – a training college for bankers in the North East, and the National Centre for Financial Education (NCFE) – which develops financial literacy content (jointly with other regulators). Additionally, RBI collaborates with international institutions for capacity building (for example, the College of Supervisors was recently set up within RBI to sharpen supervisory skills, and RBI hosts the South Asian Training & Research initiatives under SAARCFINANCE). These institutions support the RBI’s objective of strengthening the financial system through research, training, and knowledge dissemination.