Category: Structure, organization and functioning of the Executive – GS2E

RESERVE BANK OF INDIA (RBI)

Context

  • Viral Acharya’s resignation as Deputy Governor of the Reserve Bank of India

About:

  • The  Reserve  Bank  of  India  was  established  on  April  1,  1935  in  accordance  with  the provisions of the Reserve Bank of India Act, 1934.
  • Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.

Composition:

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

Functions:

Monetary Authority:

  • Formulates, implements and monitors the monetary policy.
  • Objective: maintaining price stability while keeping in mind the objective of growth.

Regulator and supervisor of the financial system:

  • Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
  • Objective: maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public.

Manager of Foreign Exchange

  • Manages the Foreign Exchange Management Act, 1999.
  • Objective: To facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency:

  • Issues and exchanges or destroys currency and coins not fit for circulation.
  • Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental Role:

  • Performs a wide range of promotional functions to support national objectives.

Regulator and Supervisor of Payment and Settlement Systems:

  • Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
  • Objective: maintain public confidence in payment and settlement system.

Related Functions

  • Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
  • Banker to Banks: maintains banking accounts of all scheduled banks.

Jal Shakti’ Ministry to deal with integrated water issues

Why in News:

  • A new ‘Jal Shakti’ Ministry, in which the erstwhile Ministries of Water Resources and Drinking Water and Sanitation will be merged, has been formed

Details:

  • Mr. Shekhawat took charge of the Ministry
  • The remit of the Ministry will encompass issues ranging from international and inter-State water disputes, the Namami Gange project, the flagship initiative to clean the Ganga, its tributaries and sub-tributaries and the provision of clean drinking water.
  • Mr. Shekhawat said that the priority would be to provide clean drinking water to everyone.

For A Full Bench: On Recommendations For Judicial Appointments

Why in News:

  • The government and the Supreme Court collegiums disagree on recommendations for judicial appointments.

Details:

  • The latest concerns Jharkhand High Court Chief Justice Aniruddha Bose and Gauhati High Court Chief Justice A.S. Bopanna, who were recommended for elevation to the Supreme
  • The government had sought a reconsideration of the two names.
  • The collegium has now repeated its recommendations, emphasising that there is nothing adverse against the two judges in terms of their “conduct, competence and integrity” and that there is no reason to agree with the government. Under the present procedure, the government is now bound to accept the
  • The Supreme Court is keen to fill up the current
  • It has also recommended two more judges, Justice B.R. Gavai of the Bombay High Court and Chief Justice Surya Kant of the Himachal Pradesh High Court, for appointment to the apex court. If all these four recommendations go through, the court will have its full complement of 31
  • The filling up of vacancies is a continuous and collaborative process involving the executive and the judiciary, and there cannot be a time frame for
  • It is time to think of a permanent, independent body to institutionalise the process.

Collegium system

  • Collegium system in India is the system by which the judges are appointed by the judges
  • only also referred to as “Judges- selecting- Judges”.
  • It is the system of appointment and transfer of judges that has evolved through judgments of the Supreme Court, and not by an Act of Parliament or by a provision of the Constitution.
  • The Supreme Court collegium is headed by the Chief Justice of India and comprises four other senior most judges of the A High Court collegium is led by its Chief Justice and four other senior most judges of that court.
  • Names recommended for appointment by a High Court collegium reaches the government only after approval by the CJI and the Supreme Court
  • The government is bound to appoint a person as a Supreme Court judge if the collegium reiterates its recommendation.

Categories

Current Affairs Calendar

M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031

Quick Navigate

Social Connect