In News:

• The fiduciary responsibility of the RBI’s board members lies with the central bank, RBI governor quoted.

Explained:

• At present, the central bank has 18 board members including the governor and the four deputy governors.
• There are 11 members, who are experts in their field, nominated by the government, besides two government officials — the Secretary of Economic Affairs and Secretary of Financial Services.
• The RBI board is not involved in monetary policy making or any particular policy-related issues, but provides a broader vision to the central bank.
• However, the board of the central bank had raised various policy related issues during the previous governor’s tenure such as the issue of economic capital framework, governance of RBI, lifting prompt corrective action framework from several banks and a special package for the micro, medium and small enterprises.

Background:

Central Board:

• The Reserve Bank’s affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
• Appointed/nominated for a period of four years.

Constitution:

Official Directors

✓ Full-time: Governor and not more than four Deputy Governors

Non-Official Directors

• Nominated by Government: ten Directors from various fields and two government Official
• Others: Four Directors – one each from four local boards

Fully owned subsidiaries of rbi:

• Deposit Insurance and Credit Guarantee Corporation of India (DICGC),
• Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL),
• National Housing Bank (NHB),
• Reserve Bank Information Technology Private Limited (ReBIT)