What is the role of Central Board of Directors of RBI?

• The 622nd meeting of the Central Board of Directors of the Reserve Bank of India (RBI) was held in Patna under the chairmanship of Governor Sanjay Malhotra on March 20.

• The Board assessed the emerging global and domestic economic scenario, including the evolving geopolitical developments and their impact on financial markets, along with associated challenges. 

• The Board approved the RBI’s budget for the accounting year 2026-27 and also the Medium Term Strategy Framework (Utkarsh 3.0) for the period 2026-29.

• Deputy Governors T. Rabi Sankar, Swaminathan J, Poonam Gupta, and Shirish Chandra Murmu participated in the meeting.

Central Board of RBI

• The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

• The Central Board of Directors is entrusted with the governance of the Reserve Bank in accordance with the Reserve Bank of India (RBI) Act, 1934. 

• It comprises the Governor as the chairperson, four Deputy Governors and directors nominated by the central government.

• In accordance with the RBI Act, the central government also appoints members for four Local Boards to advise the Central Board on matters referred to them by the Board.

• The directors are generally appointed for a four-year term.

The Central Board is assisted by three Committees: 

i) The Committee of the Central Board (CCB).

ii) The Board for Financial Supervision (BFS).

iii) The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). 

• These committees are headed by the Governor.

In addition, the Central Board has five sub-committees each headed by a non-official director. 

They are:

i) The Audit and Risk Management Sub-Committee (ARMS).

ii) The Human Resource Management Sub-Committee (HRM-SC).

iii) The Building Sub-Committee (B-SC).

iv) The Information Technology Sub-Committee (IT-SC).

v) The Strategy Sub-Committee (S-SC).