view of the fast changing external environment brought about by the growing deregulation,
liberalisation and opening up ofthe Indian economy, human resources management
has assumed high significance. The Reserve Bank, therefore, continued with its
endeavour of upgrading the skills of its human resources. The focus was on facilitating
the transition to a learning environment that lays stress on developing functional,
inter-personal and leadership skills, creativity and communication capabilities
as well as the ability to work in a cross-cultural work environment and with cross-functional
teams. Efforts to benchmark the work processes in the Reserve Bank to the international
best practices were carried forward during 2006-07. With a view to reaching out
to the common person in the country, the Reserve Bank has also been suitably designing
and developing communication strategies for disseminating information on its policies.
Speeches by Top Management (Annex 1), reports of the various Working Groups (Annex
II), and regular publications, an important part of the communication policy,
are all placed on the Reserve Bank’s website.
IX.2 This Chapter
details the various initiatives undertaken by the Reserve Bank for upgrading the
human resources skills through appropriate training facilities at its own as well
as external training institutes in areas of relevance to its working and operations.
It also covers various measures taken for improving the customer service in the
areas of banking, currency, foreign exchange and clearing mechanism including
evaluation of customer satisfaction, financial inclusion and financial education.
A Customer Service Department was set up in July 2006 by bringing in various customer
service activities handled by different departments of the bank under a single
roof for improving the quality of services to the members of public, banks, Central
and State Governments and financial institutions.
IX. 3 The
Reserve Bank’s research departments continued to provide analytical research
on various aspects of the Indian economy in the conduct and formulation of its
monetary and financial policies. In order to explain the rationale and the analytics
of its policy initiatives to the public, the Reserve Bank disseminated wide ranging
information through press releases, notifications, master circulars, publications,
speeches, frequently asked questions and advertisements.
IX.4 Finally, the
Chapter presents an overview of the meetings of the Central Board and its Committees.
Seven meetings of the Central Board were held during the year ended June 30, 2007
wherein there were discussions on the areas of currency management, banking regulation
and supervision, monetary and credit policy, accounting policy, and internal debt
management policy. The deliberations of the Board also focused on the critical
issue of ensuring the benefits of growth to the poorer sections of
society and increasing the flow of credit to agriculture and rural areas.
HUMAN RESOURCE INITIATIVES
Training and Skills
IX.5 Three training colleges of the Reserve Bank,
viz., the Bankers’ Training College (BTC), Mumbai, the Reserve
Bank Staff College (RBSC), Chennai and the College of Agricultural Banking (CAB),
Pune continued to cater to the training needs of the officers of the Reserve Bank
and the banking industry. The four Zonal Training Centres (ZTCs) focused on training
of Class III and IV staff of the Reserve Bank (Table 9.1).
Training College/Centre for Advanced Financial Learning, Mumbai
IX.6 The Bankers’ Training College (BTC) was established to train the personnel
of commercial banks and other financial institutions in India. Recognising the
many changes that have taken place in the financial sector and to provide a broad-based
intellectual platform for research, training and discussion for senior executives
and professionals in the financial sector, both Indian and foreign, the Bankers’
Training College was relaunched as “Centre for Advanced Financial Learning”
by the Honourable Prime Minister of India in 2006. The Centre conducted two high-end
programmes on Advanced Derivatives and Financial Risk Management by outside experts
for senior officers of the Reserve Bank. It also conducted 12 programmes in areas
such as asset liability management, risk management, human resources development,
customer services and emerging issues in banking (Table 9.2).
9.1: Training Establishments of the Reserve Bank – Programmes Conducted
ZTCs (Class III)
ZTCs (Class IV)
* : Includes 10 outstation
programmes conducted at the initiative of Regional Offices involving 384 participants.
# : Includes 13 offsite programmes involving 437 participants.
BTC : Bankers’
RBSC : Reserve Bank Staff College.
CAB : College of
ZTC : Zonal Training Centre.
Bank Staff College, Chennai
IX.7 The Reserve Bank Staff College (RBSC),
established to impart training to the Reserve Bank’s own officers in junior
and middle management cadres and specialised development of officers in the senior
management cadre, continues to contribute to the upgradation of skills of all
the cadres of the officers. In line with the changing environment, it has been
consistently endeavouring to modernise the
9.2: New Programmes/Seminar/Workshops Conducted by Training Colleges during 2006-07
Training College (BTC)/Centre for Advanced Financial Learning (CAFL)
Forex and Risk
Management (for Canara Bank)
Management and Quantitative Techniques
Symposium on Farm Credit for Inclusive Growth
Development Programme for Promotees
to Executive Cadre (for Canara Bank)
Harvesting and Energy Conservation
Workshop on ICT for Rural Financial Services
Resource Development Challenges for Indian Banks
Seminar on Micro Finance
Crimes and Market Intelligence
Seminar on Organic Agriculture
on Issues in Customer Service in Banks
Seminar on Basel II Implementation Issues
on Commodities Futures and Agricultural Produce Marketing
Liability Management with Duration
Gap Analysis Framework
for Police Officials
from National Police Academy,
for the Chief Executive Officers of the
Banks and Micro
on Credit Delivery, Culture and Pricing
Restructuring and Strengthening
Agricultural / Rural
Programmes on Micro Finance Delivery Systems
For Participants from Sri Lanka.
Credit Risk Modelling under Basel II
on Emerging Issues in Banking
techniques of training as well as the coverage of inputs.
Ethical issues, communication techniques as well as human values are being included
in most of the programmes.
IX.8 Four e-learning modules have been prepared
and kept on the website of the RBSC for perusal, while two are under preparation.
A number of topical programmes relating to Basel II, credit management, rain water
harvesting, organisational culture building and financial crimes were organised
in the College during the year (see Table 9.2). The College
conducted off-site programmes at various centres. In order to provide an intellectual
platform on financial and central banking issues for the Afro-Asian region, the
College conducted “International Seminar on Basel II-Implementation Issues”.
The seminar attended by 24 central bankers from 14 countries deliberated on various
issues and options based on individual country experiences.
of Agricultural Banking, Pune
IX.9 The College of Agricultural Banking
(CAB), originally set up with a focus on training the senior and middle level
officers of rural and co-operative credit sectors, has, in recent years, diversified
into areas relating to non-banking financial companies, human resource management
and information technology (IT). Keeping in view the emerging training needs,
the College organised 45 new programmes such as farm credit for inclusive growth,
IT for rural financial services, micro finance, commodities futures and management
development (see Table 9.2). The College also organised four
international programmes, viz., the International Programme on Restructuring
and Strengthening of Agricultural/Rural Financial Institutions (sponsored by the
Centre for Co-operative Training in Agriculture and Banking) and three customised
programmes on Micro Finance Delivery Systems for participants from Sri Lanka.
The College conducted 31 customised programmes for the Central Bank of Sri Lanka,
Dena Bank, Union Bank of India, Corporation Bank, Canara Bank, Indian Overseas
Bank, National Housing Bank, and Indian Banks’ Association. The Planning
Commission/ United Nations Development Programme (UNDP) sponsored programme for
the senior State/Central Government officials was also organised. Furthermore,
19 off-campus programmes were organised at various centres. 128 participants from
Sri Lanka, Nepal and Bangladesh attended training programmes conducted by the
College during the year. The College continued to provide faculty support to a
number of other institutions.
IX.10 The College also undertook a study on
‘Costs and Margins of Micro Finance Institutions’ in association with
some regional offices. The College has been regularly bringing out a quarterly
journal “CAB Calling”, focused on developmental banking. Two out of
the three issues of the magazine published during 2006-07 focused on “SME
Financing” and “Organic Agriculture”. The College has initiated
the process of obtaining ISO certification in a time-bound manner to improve the
quality management systems in its academic activities.
Officers for Training in India and Abroad
IX.11 In order to upgrade
the skills of its human resources, the Reserve Bank also deputes its officers
to various external training institutes, conferences, seminars and workshops,
both in India and abroad. During 2006-07, 871 officers were deputed for various
programmes in India while 352 officers were sent abroad. The areas covered in
such programmes included banking supervision, derivatives, risk management, financial
programming and policies, central bank accounting, monetary policy and operations,
macroeconomic management, debt management, reserve management, finance for agriculture,
rural development, micro finance, human resources, international banking, foreign
trade and labour laws (Table 9.3).
IX.12 With a view
to enhancing the level of knowledge and sharpening executive skills, the Reserve
Bank has decided to depute Senior Officers in Grade ‘F’ for advanced
management programmes of about two to three weeks’ duration at leading business
schools abroad. Four Senior Officers in Grade ‘F’ have been chosen
for deputation to pursue such courses in 2007 at internationally renowned business
schools such as the Harvard Business School, the Columbia Business School and
the London Business School.
9.3: Number of Officers Trained in External
Institutions in India and Abroad
IX.13 In order to hone the technical and management skills of the Reserve
Bank’s officers, a need was felt for greater coordination with leading central
banks as well as other key regulatory and supranational agencies. With this objective,
an inter-institutional exchange of human resources in the form of a Short-term
Secondment Scheme has been put in place; under the first such exchange, one officer
has taken up a secondment with the Financial Stability Division at the Bank of
England effective April 2007. Discussions are on with the Banque de France
on designing a similar shor t-term Secondment Scheme.
IX.14 A scheme
of sponsoring officers in Grades A and B below the age of 35 years for pursuing
PostGraduate Programme in Banking & Finance (PGPBF) conducted by the National
Institute of Bank Management (NIBM), Pune has been instituted and one officer
has been selected to pursue the course during the academic year 2007-08.
IX.15 Four officers were selected during 2006-07 under the Reserve Bank’s
Golden Jubilee Scholarship Scheme for higher studies abroad. In all, 87 officers
have been selected under this scheme since its inception in 1986.
Ten officers were allowed to pursue higher studies during the year. Besides, one
officer completed research under the Bank for International Settlements (BIS)
Visiting Fellowship Programme. One officer has been deputed for the post of India
Analyst in a project being jointly run by Bank of Tokyo and Waseda University,
Zonal Training Centres
IX.17 Zonal Training Centres
(ZTCs) of the Reserve Bank conducted programmes on functional areas, information
technology and behavioural areas for employees in the Class III and IV cadres
of the Reserve Bank. Apart from regular programmes at their premises, the ZTCs
also conducted offsite programmes. Four pre-Integrated Officer Development Programme
(IODP) courses were conducted at ZTC, Kolkata. Pre-examination trainings for Assistant
Managers (for SC/ST and physically handicapped candidates) and Managers as well
as preparatory training programmes for promotion of Class IV to Class III were
also conducted at ZTCs.
IX.18 ZTC, Belapur conducted an exclusive training
programme on Inventory Management and Accounts for the employees of the Royal
Monetary Authority of Bhutan. The National Bank for Agriculture and Rural Development
(NABARD) has been deputing its Class III and IV employees for investment and retirement
planning programme conducted by ZTCs on a cost basis.
of Class III and IV Staff to External Institutions in India
Under the scheme for deputation of Class III and IV staff for training in external
institutions in India in human resource development, 182 Class III and 21 Class
IV employees were deputed during the calendar year 2006. Four in-company programmes
for Class III employees and for Class IV employees were conducted at external
training institutions, viz., V. V. Giri National Labour Institute, Noida
and National Productivity Council, New Delhi, respectively, during the year 2006-07.
Training in Computer Technology
IX.20 During 2006-07, 130
officers were deputed for advanced training programmes in computers and information
technology to leading training institutions such as the National Institute of
Bank Management (NIBM), Pune and the Institute for Development and Research in
Banking Technology (IDRBT), Hyderabad. The Reserve Bank contributed Rs.9 crore
towards training fees and membership subscriptions of various institutions.
IX.21 During July-June 2007, 555 employees
availed benefits under the incentive scheme for pursuing part time and distance
education courses. The major areas of the study were management, information technology,
financial analyst and postgraduation in commerce and economics.
In order to provide its staff an additional avenue of skill enhancement, the Reserve
Bank has obtained an e-learning module designed by the Indian Institute of Banking
and Finance (an affiliate of the Indian Institute of Bankers) exclusively for
its employees covering different facets of central banking such as treasury
and risk management, and international banking and foreign exchange.
IX.23 FSI-Connect, an innovative web-based information resource and learning tool
for bank supervision introduced by Financial Stability Institute of Bank for International
Settlement has been subscribed by the Reserve Bank since 2005. The Reserve Bank
is the largest subscriber having 1,213 connections. This e-learning facility contains
modules like Capital and Basel II, Market Risk, Credit Risk, Operational Risk
and Payment Systems.
IX.24 At the Reserve Bank’s Regional
Directors’ Conference for the year 2006 held in informal settings at Mumbai
from November 23 to 26, 2006, Governor/ Deputy Governors shared their vision on
the way forward for the Reserve Bank and set out the broad goals for the organisation.
At this annual forum, organisational strategies were also discussed with the heads
of the Regional Offices and Central Office departments with a view to enhancing
efficiency through internal re-engineering. Deliberations also laid emphasis on
outcomes as against processes, given the changes in the external environment.
In order to provide the Regional Directors a first-hand idea of the issues engaging
the Reserve Bank, presentations were made by heads of the various Central Office
departments. Presentations were also made by the Regional Directors on notable
initiatives taken by the offices under their jurisdictions. An interactive Strategy
Conversation Session discussed internal issues such as HR ownership, execution
and delivery and leadership building. A galaxy of eminent guest speakers also
addressed the Conference on a range of interesting and evolving issues.
IX.25 With a view to imparting more transparency and objectivity in the Performance
Rating System, a new Performance Appraisal Reporting (PAR) System for the members
of staff in the Class III cadre was introduced during 2006-07. The revised arrangement
replacing the erstwhile Annual Confidential Reporting (ACR) System incorporates
self-assessment by the employees and has been received favourably as a step forward
towards a fairer and more objective system of employee appraisal.
As part of its capacity building and knowledge management initiatives, the Reserve
Bank signed a Memorandum of Understanding with the London School of Economics
and Political Science (LSE) for creating a LSE India Observatory and IG Patel
Chair to be based at the Asia Research Centre at the LSE. The LSE India Observatory
will co-ordinate India-related research, policy development and teaching at the
LSE and is expected to emerge as a hub for academic collaboration with academic
institutions in India, government agencies and corporate bodies. The IG Patel
Chair, which is being set up in honour of the late Dr. I.G. Patel, a former Governor
of the Reserve Bank, who also later held the post of Director at the LSE, will
be a fully endowed permanent professorship and its holder will lead the LSE India
Observatory. The LSE proposes to invite an eminent scholar with an established
reputation in development economics, political economy or a closely related field
to hold this post. The Reserve Bank, as part of a sponsor consortium, will provide
a funding of £100,000 per annum to the LSE for a period of ten years beginning
January 2007. The Memorandum of Understanding in this regard was signed on December
7, 2006 in New Delhi in the presence of the Honourable Prime Minister of India.
IX.27 With a view to positioning India as a global training provider in the
field of banking and finance, the Joint India-International Monetary Fund (IMF)
Training Programme (ITP) has been established at the National Institute of Bank
Management (NIBM) campus in Pune. This is the seventh such facility of the IMF
Institute in the world. The ITP will impart policy-oriented training to nominees
of Governments and central banks of the participating SAARC and East African countries,
apart from India, in areas such as macroeconomic management and policies, financial
programming, monetary policy, bank supervision, financial sector issues, public
finance, exchange rate policy and foreign exchange operations and statistics.
The ITP will also include seminars on topical issues for high-level officials.
Faculty support for these courses will be provided by the IMF Institute, Washington.
The inaugural course at the ITP was held from July 24 to August 4, 2006. In all,
six courses were held at the ITP during 2006-07 (July-June).
Reserve Bank organised an interface on the broad theme of “Capacity
Building in Central Banks : Creating Synergies” with the Heads of the Human
Resource Depar tment(s)/Training Establishments of central banks ofthe countries
participating in the courses run at the ITP Centre at Pune. The interface, aimed
at building up the synergy with other key central banks on human resource issues,
afforded an opportunity to learn from cross-country experiences in aligning human
resource management with the strategic objectives. The event coincided with the
formal inauguration of the Joint India-IMF training facility in Pune.
IX.29 Twelve officials from the central banks of Zambia, Tanzania and Nigeria
were provided study attachments at the Reserve Bank’s Central Office departments
during 2006-07. Interface sessions were held for students of Pace University,
University of Texas at Austin, and University of Manchester; such sessions were
also held for senior civil servants of Singapore, par ticipants from Higher Defence
Management Course, Secunderabad, and College of Naval Warfare.
IX.30 The Reserve Bank has in place a
Summer Placement scheme which affords an opportunity to domestic and foreign students
to expose themselves to an actual managerial environment and apply their knowledge
to operational issues in the central bank while doing their internship. During
the year 2006-07, 30 students selected under the scheme from management institutes/colleges
of India undertook their internship in the Reserve Bank. Furthermore, 13 students
pursuing higher studies abroad have also been selected to undertake internship
with the Reserve Bank during the year 2006-07.
IX.31 Industrial relations in the Reserve Bank remained, by and large, peaceful
during 2006-07. Periodical meetings were held with the recognised Associations/Federations
of workmen employees/ officers on various matters related to service conditions
and welfare measures in the Reserve Bank.
IX.32 During 2006 (January-December), the Reserve Bank recruited 360 employees.
Of this, 105 belonged to Scheduled Castes (SCs) and Scheduled Tribes (STs) categories,
constituting 29.1 per cent of total recruitment (Table 9.4).
IX.33 The total staff strength as on December
31, 2006 was 21,910 as compared with 22,192 a year
9.4: Recruitment by the Reserve Bank – 2006*
* : January-December.
SC : Scheduled Castes.
ST : Scheduled Tribes.
ago. Of the total staff,
21.2 per cent belonged to Scheduled Castes and 8.9 per cent belonged to Scheduled
Tribes as on December 31, 2006 (Table 9.5 and Chart
IX.34 During 2006 (January-December), the Reserve Bank’s
Liaison Officer for Scheduled Caste/ Scheduled Tribe employees conducted inspection
of reservation rosters maintained at six offices, viz., Guwahati, Thiruvananthapuram,
Kochi, Jaipur, Jammu and Hyderabad. Meetings between the management and
the representatives of the All India Reserve Bank Scheduled Castes/Scheduled Tribes
and the Buddhist Federation were held on four occasions during the year to discuss
issues relating to the implementation of reservation policy in the Reserve Bank.
In accordance with the Central Government’s policy, the Reserve Bank has
provided reservation to Other Backward Classes (OBCs) effective September 8, 1993.
The representation of the OBCs (recruited after September 1993) in the Reserve
Bank as on December 31, 2006 was 820. Of these, 217 were in Class I, 110 in Class
III and 493 in Class IV. Two meetings were held with the All India Reserve
Bank OBC Employees’ Welfare
9.5: Staff Strength of the Reserve Bank
cent to Total Strength
SC : Scheduled Castes.
ST : Scheduled Tribes.
to discuss issues relating to implementation of the reservation policy in the
IX.35 The total strength of ex-servicemen in the Reserve
Bank at end-December 2006 was 1,273 comprising 165 in Class I, 288 in Class III
and 820 in Class IV. The number of physically handicapped employees in Class I,
Class III and Class IV cadres was 113, 218 and 133, respectively, at end-December
IX.36 Of the total staff, 31.1 per cent was in Class I, 34.3 per
cent in Class III and the remaining 34.6 per cent in Class IV (Table
IX.37 Almost one-four th of the total staff is involved in
the work related to currency management (Table 9.7).
IX.38 Mumbai (including the Central Office Departments) continued to have the
maximum number of staff – 29 per cent of total staff strength –followed
by Kolkata (10 per cent), Chennai and Delhi (7 per cent each) (Table 9.8).
IX.39 In view of the ongoing innovations,
new developments and wor k processes getting increasingly technology-driven, induction
of appropriate technical manpower in the Reserve Bank was considered imperative.
Accordingly, during the year, the Reserve Bank took Information Technology (IT)
resources personnel on a contract appointment basis.
9.6: Category-wise Actual Staff Strength
on December 31, 2006)
Officers in Grade F
Officers in Grade E
Officers in Grade D
in Grade C
in Grade B
in Grade A
Total Strength in the
Opening of New Offices/Departments
Reserve Bank opened sub-offices at Dehradun and Raipur on June 30, 2006 and January
2, 2007 for the States of Uttaranchal (since renamed as Uttarakhand) and Chhattisgarh,
respectively. The sub-offices will focus on issues relating to rural credit and
co-operative banks in the respective States. The sub-offices will initially have
two departments, namely, the Rural Planning and Credit Department (RPCD) and the
Urban Banks Department (UBD).
IX.41 In July 2006, a new department called
‘Customer Service Department’ was set up in order to bring together
all activities relating to customer service in the Reserve Bank under one roof
(see Box V.5).
IX.42 In October 2006, the Lucknow
Sub-office was granted the status of an independent office of the Reserve Bank
with the creation of an independent jurisdiction of the Issue Circle at Lucknow
and clear demarcation of functional jurisdiction between Kanpur and Lucknow offices.
9.7: Reserve Bank’s Department-wise Strength of Staff as on December 31,
of Administration and
of Banking Operations and
of Banking Supervision (DBS)
of Currency Management (DCM)
of Economic Analysis and Policy (DEAP)
of Expenditure and
of External Investment and
of Statistical Analysis and Computer
of Government and Bank Accounts (DGBA)
of Information Technology (DIT)
of Non-Banking Supervision (DNBS)
Exchange Department (FED)
Markets Department (FMD)
Resources Development Department (HRDD)
Training College, Mumbai
Bank Staff College, Chennai
of Agricultural Banking, Pune
Debt Management Department (IDMD)
Relations Division (PRD)
Planning and Credit Department (RPCD)
Banks Department (UBD)
Insurance and Credit Guarantee
Bank Services Board (RBSB)
1. C.O : Central Office. R.O : Regional Office.
2. The staff in Monetary Policy
Department (MPD) are not shown separately since the staff are drawn from five
other Departments, viz.,
DEAP, DESACS, DBOD, RPCD and DAPM. The staff
strength of MPD in different categories as on December 31, 2006 was 37 in
Class I, 17 in Class III and 16 in Class IV.
3. The Department of Payment
and Settlement Systems (DPSS) is not shown separately as their staff forms a part
of staff strength of DIT.
4. The Banking Codes and Standard Board of India
(BCSBI) and Customer Service Department (CSD) have not been shown separately
as their staff forms part of RPCD.
5. The staff shown against DCM is inclusive
of staff employed in Issue Department.
6. The staff shown against DGBA is
inclusive of staff employed in Banking Department, Public Accounts Department
9.8: Office-wise Strength of Staff
on December 31, 2006)
(CAB and CRDC)
(1 to 22)
# : Includes staff
of the sub-office opened at Raipur on January 2, 2007.
* : Includes staff
of the sub-office opened at Dehradun on June 30, 2006.
CRDC : Central Records
and Documentation Centre.
Promotion of Hindi
IX.43 During the year 2006-07, the Reserve Bank persevered with its efforts
to promote the use of Hindi in its working. In fulfilling the statutory requirements
of Rajbhasha Policy, involving implementation of the provisions of the Official
Languages Act, 1963, the Official Language Rules, 1976 and the Annual Programme
issued by the Government of India, Hindi training programmes and other promotional
activities such as shield competitions, inter-bank Hindi essay competitions and
inter-bank/financial institutions Hindi/ bilingual house journal competitions
were conducted. Many programmes were conducted at the time of Hindi fortnight
observed from September 14, 2006.
IX.44 In order to promote Hindi, the
Reserve Bank continued to bring out its various publications in bilingual form,
i.e., both in Hindi and English. The Reserve Bank’s Central office
publishes a bilingual house journal ‘Without Reserve’. The publication
‘Banking Glossary’ has been revised with the cooperation of the representatives
of the public sector banks to enhance its usefulness. The Reserve Bank through
its Rajbhasha Depar tment fur ther strengthened the use of Hindi in computerisation.
The Reserve Bank’s training colleges bring out books in Hindi which featured
useful articles on current topics on banking and other related topics. The Bankers’
Training College continued its prestigious Hindi publication named ‘Banking
Chintan Anuchintan’ which is quite popular in the banking sector in
India. The regional offices also made attempts to publish regular magazines in
Hindi during the year.
IX.45 The Reserve Bank has prepared a 3-year action
plan for effective use of Hindi. The action plan includes computer bilingualisation,
translation, training in Hindi medium, dissemination of information related to
Rajbhasha and initiatives to motivate the Reserve Bank’s staff for the use
of Hindi. The Reserve Bank’s main website has been linked with the Hindi
section. The intranet site of Rajbhasha Department is in Hindi only. The intranet
sites of various offices/ departments are also provided with Hindi section; the
intranet site of Department of Economic Analysis and Policy is fully bilingual.
An ‘Expert Group on Bilingualisation of Computers’ has been set up
in order to ensure bilingualisation. A translation workshop was conducted for
Rajbhasha officers from the Reserve Bank as well as from public sector banks so
as to encourage the assimilation of translation work. To make the translation
work easy, simple and perceptible, a ‘Translation Review Committee’
has been constituted. Guidelines regarding the use of Hindi in Banking Ombudsman
offices were issued in November 2006. Training programmes ‘Intensive Course
in Hindi Correspondence in Networking Environment’ for officers and ‘Entire
Work in Hindi through MS Office’ for staff members are conducted regularly
to enable them to work in Hindi on computers. A special training programme for
senior officers was also conducted during 2006-07.
IX.46 The Committee
of Parliament for Official Language visited Thiruvananthapuram Regional Office
on January 17, 2007 and expressed satisfaction with progress on the use of Hindi
in the Office.
Customer Service and Grievance Redressal System
in the Reserve Bank
IX.47 The Reserve Bank renders services
to members of public, banks, Central and State Governments and financial institutions
in areas covering currency management, Government receipts and payments including
tax collections, public debt management, clearing and remittance of funds and
foreign exchange. In order to further improve the delivery of customer services,
a Customer Service Department was set up in July 2006 by bringing in various customer
service activities handled by different departments of the bank under a single
roof. Customer Ser vice Depar tment oversees the functioning of the Complaints
Redressal Cells (CRCs) functioning in Regional Offices. CRCs cover all service-oriented
departments of the Reserve Bank such as the Banking Departments [Public Accounts
Department (PAD), Deposit Accounts Department (DAD), and Public Debt Office (PDO)],
Foreign Exchange Department and Issue Department. In order to achieve optimum
awareness and improvement of customer service in the Reserve Bank, the CRC uses
a variety of tools like release of advertisements, Citizens’ Charter, branch
level meetings, status reports and reviews by the Local Board. All the full-fledged
Reserve Bank offices issue advertisements on the first Sunday of January and July
every year, giving wide publicity about the functioning of the CRCs at various
centers and also at the Central Office. The advertisement also gives the names
and contact details of the Grievance Redressal Officers at the Regional Office
and Central Office. The Citizens’ Charter specifies the timeframe for each
of the customer related activity of the Banking Department. The Citizens’
Charter is prominently displayed in the Banking Departments for the benefit of
the members of the public visiting the Bank’s premises for availing various
kinds of services. As per the recommendations of the Committee on Procedures and
Performance Audit on Public Services (CPPAPS), the Regional Offices assess the
level of their customer service every quarter. The shor tcomings/exceptions observed
during this process are rectified in consultation with the Central Office departments.
Incognito visits are conducted by the Chief General Managers on their visits
to Regional Offices to assess the level of customer service at the ground level.
The issues relating to the customer service and redressal of complaints are discussed
in the monthly meetings of the Branch Level Management Committees. The status
of receipt/ redressal of complaints is reviewed in the quarterly meetings of the
Local Boards of the Reserve Bank. During 2006-07 (July-March), 157 complaints
were received against the Reserve Bank of which, 111 pertained to Issue/Cash Department.
The largest number of complaints was received at Mumbai and Bhopal offices.
During 2006-07, various innovative measures were taken for improving customer
service in the areas of banking, currency, foreign exchange and clearing mechanism.
These included evaluation of customer satisfaction, financial inclusion and financial
education. Training programmes/workshops/meetings were conducted to educate officials
of various banking and non-banking organisations, such as, State and Central Government
undertakings, authorised foreign exchange dealers, rural and urban money lenders,
representatives of major NGOs, professors and farmers’ organisations. The
Regional Offices held informal meetings with controlling heads of banks and impressed
upon them the need to take effective steps for financial inclusion. Bhubaneswar
and Lucknow offices achieved 100 per cent financial inclusion in select districts
in their States with the help of banks, district magistrates, chief development
officers and NABARD. Officers of some Regional Offices made incognito
visits to bank branches to assess, inter alia, the level of customer
service, foreign exchange business conducted, exchange of defective notes, display
of service charges, interest rates on deposits and cheque drop box facility. The
deficiencies found were taken up with the controlling offices for corrective action.
As part of its efforts to spread awareness about electronic clearing products,
Thiruvananthapuram office invited a large number of users – corporates,
college students, State and Central Government undertakings – for a detailed
presentation on various electronic funds transfer products, viz., electronic
clearing service (ECS), national electronic funds transfer (NEFT) and real time
gross settlement (RTGS). A pamphlet prepared on the ECS was released on the occasion.
Chennai office set up a pavilion in the 33rd India Tourism and Industrial Fair
2007 to create awareness among the public on issues such as the Reserve Bank’s
role as a central bank, Clean Note Policy, security features of new series notes,
and Star series notes. Banners and posters on detection of forged notes, foreign
exchange facilities for residents, guidance on investment in NBFCs and key features
of the new Banking Ombudsman Scheme, 2006 were displayed in the pavilion. Hyderabad
Office participated in the “Hyderabad Coins and Notes Fair – 2007”
organised by the Philatelic and Hobbies Society, Secunderabad in which the officers
interacted with visitors. The features of genuine banknotes and ways to identify
forged notes were explained with the aid of posters, power point presentations,
film shows, and pamphlets. Patna office set up a ‘Help Desk’
at the venue of the “Global Meet for a Resurgent Bihar” and also distributed
FAQs on various foreign exchange matters among the delegates.
Redressal Mechanism – Prevention of Sexual Harassment of Women at Workplace
IX.51 Pursuant to the guidelines laid down in the Supreme Court Judgment
[Vishaka and Others vs. State of Rajasthan (1997) SCC 241], a Complaints
Redressal Mechanism for prevention of incidence of sexual harassment of women
at workplaces was put in place in the Reserve Bank in 1998. Under the system,
a Central Complaints Committee (CCC) headed by a lady officer in Grade ‘F’
is functional at the Central Office level. In order to provide an easy access
to the complaints redressal mechanism for the lady staff working in offices located
at various other places, additional Complaints Committees have been formed at
six locations in the Reserve Bank’s offices at Mumbai and 20 Regional Offices.
These Committees are also headed by senior woman officers. The CCC and the Regional
Complaints Committees (RCCs), besides having a NGO member each, have more than
50 per cent women members. The CCC acts as the focal point for all the Complaints
Committees constituted at 20 centres of the Reserve Bank as well as for the six
Committees formed in various premises of the Reserve Bank in Mumbai. During 2006-07
(July-May), four complaints of the alleged harassment were received by the Complaints
Committees from aggrieved women employees. Of these, one complaint did not fall
under the purview of the Committee and in another case, no sexual harassment,
as alleged, was involved; the third complaint is being investigated, whereas in
the fourth case, the CCC has submitted its report for further action.
A survey conducted in the Reserve Bank to ascertain the level of awareness among
the lady staff members about the Supreme Court guidelines and the remedies available
in the system found that (i) a majority of women staff – three out of four
surveyed – believed that the complaints committees could settle the issues
of sexual harassment; (ii) 94.5 per cent of the surveyed lady staff felt
that the working environment in the Reserve Bank was healthy/ conducive; (iii)
a majority of the respondents felt that it was the responsibility of both men
and women employees to keep work environment healthy in the Reserve Bank; and
(iv) 10.5 per cent of women employees reported having faced some form of sexual
harassment in the office; however, they did not report the instances and preferred
to remain quiet or handle the situation themselves and some expressed having undergone
extreme anguish under such circumstances.
IX.53 A two day seminar was
arranged on September 6 and 7, 2006 at Zonal Training Centre, Kharghar to impart
training to the Chairpersons of the RCCs on the issues relating to prevention
and redressal of sexual harassment of women at workplaces. The seminar,
inaugurated by Smt. Shyamala Gopinath, Deputy Governor was conducted by Dr. H.
S. Rana, Additional Director, National Institute of Public Administration, Bangalore.
In all, 23 Chairpersons/members of complaints committees participated in the seminar.
The seminar covered topics such as Supreme Court guidelines, facts and figures
of sexual harassment, constitutional safeguards and sexual harassment, constitution
of complaints committees, preventive measures, redressal mechanism, and background
of the latest guidelines. This was the first occasion when all the Chairpersons
could meet, interact and exchange their views on the subject after the formation
of the RCCs.
IX.54 In order
to provide better all-around ambience at work and residential colonies, the Premises
Department focused on ensuring better services and maintenance standards at the
Reserve Bank’s offices and residential premises. Older electrical/ electromechanical
installations are being upgraded to ensure energy efficiency and environmental
protection. A special thrust is also being given to upgrading the residential
premises owned by the Reserve Bank. Efforts were made during the year to decentralise
and simplify procedures to increase the level of outsourcing of activities and
to improve overall efficiency in delivery of services.
IX.55 As a result
of business planning and property strategies and rationalisation/consolidation
of work-space and living space, in the context of changes in the functions and
manpower requirements of the Reserve Bank, three surplus proper ties were identified
and disposed off during 2006-07. A documented policy for disposal of surplus property,
duly approved by the Central Board of the Reserve Bank, is in place. The
Reserve Bank is making efforts towards further consolidation of its properties
across the country.
Inspection of Offices/Departments in the
IX.56 In order to enhance the effectiveness of
the internal inspection/audit process, Management Audit & Systems Inspection
(MA&SI), Information Systems Audit (ISA), Concurrent Audit (CA) and Control
Self-Assessment Audit (CSAA) of the offices/departments of the Reserve Bank are
undertaken at prescribed intervals. The focus of the MA&SI is on three ‘E’s,
i.e., efficiency, economy and effectiveness of the system. The MA&SI
evaluates the adequacy and reliability of existing systems and procedures to ensure
that laws, regulations, internal policy guidelines and instructions are meticulously
followed. Apart from conducting systems inspection, the inspection teams also
conduct the management audit under which aspects relating to organisational goals,
delegation of power, customer service in the department/office and management
efficacy are also looked into. During 2006-07, systems inspections, including
information systems audits of 15 Regional Offices (ROs), 10 Central Office departments
and two training establishments were completed. In addition, six special scrutinies
were carried out. Compliance Audit of PDO-NDS was also completed during this period.
The compliance position in respect of major findings of MA&SI reports is monitored
by the Executive Directors’ Committee under the overall supervision and
guidance of the Inspection and Audit Sub-Committee (IASC) of the Central Board.
During 2006-07, four meetings of the IASC, three meetings of the Executive Directors’
Committee and twelve meetings of CGMs’ Committee were held.
During 2006-07, snap audits of 16 Regional Offices, 24 Central Office departments
and three training establishment were conducted. The functions relating to monitoring
and guidance of CA and CSAA for ensuring comprehensive coverage of work areas/activities
were undertaken under Audit Monitoring Arrangement. The functioning of the system
of CA and CSAA was reviewed and measures to improve upon areas found deficient
were advised to the auditee departments/offices concer ned. The Inspection Depar
tment also extended faculty support for conducting training programmes/workshops
IX.58 In keeping with the recommendations of the Committee on
Procedures and Performance Audit on Public Services (CPPAPS), it was decided to
take up the ISO 9001-2000 Certification process in phases. ISO 9001-2000 is a
generic management standard providing an internationally accepted framework for
establishing quality management systems with customer focus and continual improvement
as the key elements. During the first phase, the ISO 9001-2000 certification was
obtained for Depar tment of Government and Bank Accounts (DGBA) and Department
of Currency Management (DCM) at the Central Office and Issue and Banking Departments
at Hyderabad and Kolkata offices. In the second phase, Issue and Banking Departments
at New Delhi, Jaipur, Chennai and Bangalore offices were taken up for ISO 9001-2000
implementation and are in readiness to achieve Certification shortly. In the third
phase, the process of implementing the Standards at Issue and Banking Departments
at Ahmedabad, Nagpur, Bhopal and Thiruvananthapuram offices has been initiated.
Furthermore, action has also been initiated to cover Department of Administration
and Personnel Management (DAPM), Human Resource Development Department (HRDD)
and Department of Economic Analysis and Policy (DEAP) under such Certification.
IX.59 As a part of the Reserve Bank’s continuing initiatives to adopt
and adhere to international best practices and standards, BS7799 certification
(Information Security Management System Certification) was obtained for two of
its important work areas, viz., internal debt management and external
investments and operations handled by Internal Debt Management Department (IDMD)
and Department of External Investments and Operations (DEIO), respectively. The
BS7799 certification at IDMD and DEIO has been upgraded to ISO27001 –a new
Standard having more clauses/features vis-à-vis BS 7799. The ISO27001
standards are internationally recognised information security management standards,
which define the desired methods of controlling the confidentiality, integrity
and availability of information. The certification under these standards implies
establishment/existence of requisite policies for information security management,
their effective implementation and suitable mechanism for improvement in the domain,
in tandem with the functional information security requirements. In the second
phase of certification, two more departments, viz., Department of Banking
Supervision (DBS) and Department of Banking Operations and Development (DBOD)
have been taken up for ISO 27001 Certification.
Department of Expenditure
and Budgetary Control
IX.60 The Depar tment of Expenditure and
Budgetary Control (DEBC) prepares the Reserve Bank’s Annual Budget and also
provides services to the Reserve Bank’s own staff. As regards the Annual
Budget, initiatives were taken during 2006-07 to improve/simplify the budgetary
process. These included permitting (i) interchangeability between subheads (ii)
deviations in seasonal expenditures like Leave Fare Concession (LFC) in the quarterly
reports, and (iii) overall budget utilisation within the range of 5 per cent of
the budgeted amount.
In order to explain the rationale and the analytics of its policies to the public,
the Reserve Bank disseminates a wide range of information through press releases,
notifications, master circulars, publications, speeches, frequently asked questions
and advertisements. During the year ended June 30, 2007, the Reserve Bank issued
1,826 press releases, 79 master circulars and 447 notifications. It organised
meetings, workshops and seminars to interact with special audiences. The e-mail
helpdesks continued to furnish replies to the queries raised by the general public.
Members of the public continued to send their queries relating to various services
provided by the Reserve Bank through e-mail/telephone/fax to the helpdesks set
up in various departments and Regional Offices. These queries are over and above
the queries received under the Right to Information Act.
IX.62 With accent
on transparency and accountability the Reserve Bank has been making increasing
use of its website (URL: http://ww.rbi.org.in)
in communicating with external audiences. As against adding an average 10 MB material
in a year, the material added to the site now is close to 2.5 GB. The total size
of the website in about 10 years has increased to 13.5 GBs. In keeping with its
two-way communication policy, the Reserve Bank also uses the site to seek feedback
on draft reports and recommendations of expert groups. During 2006-07, three draft
reports and 10 draft guidelines were placed on the website for feedback.
Having revamped its English website in 2005 with the intention of making it more
attractive and customer-friendly, the Reserve Bank undertook a similar task for
its Hindi website. The number of users registering themselves for receiving information
available on the Reserve Bank’s website through email went up to 7,399 during
the year from 5,630 during 2005-06.
IX.63 Making use of the available technology,
the Reserve Bank extended its communication relating to monetary policy to six
of its Regional Offices -Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata and
New Delhi, apart from Mumbai. This was enabled through the video conferencing
facility. It gave an opportunity to the regional press to interact with the Governor.
The webcast of the Governor’s press conferences on monetary policy has fur
ther strengthened the communication framework of the Reserve Bank. The webcast
of the press conference held at the time of the Mid-term Review on October 31,
2006 was accessed by 465 persons while that of the Annual Policy Statement on
April 24, 2007 was accessed by 1,803 persons.
IX.64 The Reserve Bank
arranges, from time to time, interactive seminars for press persons with the objective
of familiarising them with the basic concepts in banking/finance/central banking.
Such seminars have now become a part of the Reserve Bank’s media outreach
programme. Five such seminars were held during the year. A first-ever interactive
seminar for senior journalists was also arranged in May 2007 with the objective
of facilitating interaction between the top executives of the Reserve Bank and
senior presspersons on relevant issues under the Reserve Bank’s purview.
IX.65 To give an insight into its role and functions, the Reserve Bank, in
2006, embarked on a programme of encouraging school/college students and other
interest groups of the public to visit the Reserve Bank. The programme includes
interactive session between students and the Reserve Bank officials on issues
relating to central banking and economy, a tour of the Monetary Museum and a visit
to the National Clearing Cell where cheques are processed. During the year,
496 visitors from 10 schools and others organisations visited
the Reserve Bank under this arrangement.
IX.66 Given the current focus
of the Reserve Bank on financial education and literacy, a massive effort for
preparing material on subjects of interest to the common person has been
under taken. As a precursor to this effort, a multi-lingual website was
released in June 2007. Aimed at giving information to the common person
that he can use in his own language the site has instructions issued by the Reserve
Bank on banking matters, customer grievance redressal mechanism and the
Right to Information Act. The site also has a section explaining the role and
functions of the Reserve Bank, interesting aspects about currency and the Reserve
Bank’s history. The site is available in 11 regional languages apart
from Hindi and English.
The Right to Information Act, 2005
IX.67 The Government of India enacted the Right to Information Act, 2005
on June 15, 2005. The Act, which came into effect from October 12, 2005, aims
at providing the right to information to citizens in order to promote transparency
and accountability in the working of every public authority. The Reserve Bank,
as a public authority, as defined in the Right to Information Act, 2005 is obliged
to provide information to the members of public. Central Assistant Public Information
Officers (CAPIOs) have been designated to receive the applications for information
or appeals under the Act at all Regional Offices and Central Office depar tments.
The Reserve Bank has designated Shri V.S. Das, Executive Director, as the Chief
Public Information Officer (CPIO) and Shri H.N. Prasad, Principal Chief General
Manager as the Alternate CPIO in the absence of regular CPIO. Dr. Rakesh
Mohan, Deputy Governor, has been designated as the Appellate Authority (AA) and
Shri V. Leeladhar, Deputy Governor, as the Alternate AA in the absence of regular
IX.68 Increased awareness of the Act resulted in a rise in the number
of requests for information received from 796 (October 2005 to June 2006) to 2,163
(July 2006 to June 2007). Almost 95 per cent of the requests received during
the period were resolved. Furthermore, 393 appeals against non-disclosure of information
were received by the Bank’s Appellate Authority. In 53 such cases, the appellants
approached the Central Information Commission(CIC) (Table 9.9).
Some of the major decisions of the Central Information Commission are in Box
IX.69 The Reserve
Bank performs several functions of a diverse nature. These functions expose
the Reserve Bank to various risks such as market risk, credit risk, liquidity
risk and operational risk. Market risk is one of the critical sources of
risk faced by the Reserve Bank which arises from revaluation of its financial
assets due to exchange rate and interest rate changes both in India and abroad.
The balance sheet of the Reser ve Bank has become very sensitive to exchange rate
changes due to increase in the share of foreign currency assets in its balance
sheet in recent years. Since foreign currency assets are invested in fixed
income instruments, they are also subject to interest rate changes. Deployment
of foreign currency assets and gold in deposits and debt instruments, lending
or refinancing operations of the Reserve Bank expose it to credit risk.
Liquidity risk arises when foreign currency assets are to be converted into cash
for intervening in the markets or meeting any other cash obligations. The
Reserve Bank is also exposed to operational risk which may result in direct or
indirect loss on account of inadequate or failed internal process, people and
systems or from external events.
IX.70 These risks are managed in line
with the laid down policy. Market risk is periodically monitored.
Credit risk is managed by placing limits for counterparties and entering into
transactions through delivery versus payment systems. Liquidity
risk is effectively managed by deploying a considerable proportion of foreign
currency assets in highly liquid assets.
IX.71 Adequate measures have
also been taken to mitigate operational risk by ensuring sound internal control
systems/inspection/audit arrangements and well laid down procedures and policies,
business continuity plan for systems, insurance and physical safety of assets,
process control and validation checks for data integrity. For managing the
operational risk, increased emphasis is being placed on promoting human integrity
and alertness. Since operational risk is unquantifiable, the Reserve Bank
has also initiated measures for developing a database of past losses/operational
risks to analyse and control the same.
9.9: Right to Information Act – Requests
in other manner
received by the Bank’s
of appeals disposed of
of appeals allowed/partially
by AA with direction to furnish
where CPIO’s decisions were
Referred to Central Information
where CPIO/AA’s decisions
Decisions of Central Information Commission (CIC)
Reports of the Reserve Bank: The Central Information Commission, while
examining the validity of the exemption claim made by the Reserve Bank in relation
to its Inspection Reports, granted absolute discretion to the Reserve Bank to
assess the desirability of disclosure of Inspection Report in individual cases.
The Full Bench of the CIC observed as under: “…the RBI is entitled
to claim exemption from disclosure under section 8(1) (a) of the Act if it is
satisfied that the disclosure of such report would adversely affect the economic
interests of the State. The RBI is an expert body appointed to oversee this matter
and we may therefore rely on its assessment. The issue is decided accordingly.”
Decision of the CIC in Shri Ravin Ranchchodlal Patel and Shri Madhav
Balwant Karmarkar vs. Reserve Bank of India (December 7, 2006).
2) File notings on the basis of information received in a fiduciary capacity
exempt from disclosure: On a complaint filed before the Chief Public
Information Officer (CPIO) of the Reserve Bank on the issue
of unauthorised withdrawal of money from an account
in the Gurgaon Gramin Bank (GGB), the CPIO furnished
copies of the correspondence between the Reserve Bank and GGB and advised the
appellant the action taken on her complaint. On the basis of office notings, replies
obtained from the GGB were furnished to the appellant. However, a
copy of the office notings was denied, since these were confidential
and privileged documents containing information furnished by the bank
in fiduciary capacity, claiming exemption from disclosure under section 8(1) (e)
and (j) of the RTI Act. The appellate authority upheld the decision of the CPIO
and the CIC ruled: “there is as such no question of denial of information
from RBI as all the information asked for
has already been provided to the appellant except
copies of the notings from the concerned file of the Bank. In the instant case,
file notings in possession of RBI are furnished by the Gramin Bank (third party)
in fiduciary capacity. Therefore, the exemption under section 8(1) (e) has been
correctly applied by the public authority”.
Decision of the
CIC in Mrs. Sunita vs. Reserve Bank of India (June 19, 2006).
3) Only citizens entitled for information: “An Association
or a Company is not and cannot be treated as a citizen even though it may have
been registered or incorporated in the country. A natural born person can only
be a citizen of India under the provisions of Part II of the Constitution. Section
3 of the Right to Information Act, 2005 gives the right to information to all
citizens. Thus, it is quite clear that a person who is not a citizen cannot claim
this right.” Decision of the CIC in D.N. Sahu vs. Ministry of Urban
Development (May 9, 2006).
4) RTI Act cannot be used for
redressal of grievances:
“The RTI Act cannot be confused
with an instrument for grievance redress albeit the information obtained
through it can be so used with telling effect.” Decision of the CIC
in Pratap Singh Gandas vs. Delhi Electricity Regulatory Commission (January 11,
5) RTI application cannot be used to enquire into why,
how and in what manner a decision was taken: “In terms of the provisions
of the RTI Act, the mandate for the CIC is to make available to a citizen, the
information in possession of a public authority, by giving appropriate directions.
It has no powers to either enquire into why, how and in what manner a decision
was taken or to direct how and in what manner the affairs of a public authority
are to be conducted.” Decision of the CIC in Ms. Nita Arya, UDC, Department
of Health and Family Welfare vs. Ministry of Health and Family Welfare (June 19,
6) Details of annual immovable property returns of
an officer exempt from disclosure: “The information requested for
is in the nature of personal information, the disclosure of which may cause unwarranted
invasion of privacy of an individual officer. The exemption from disclosure of
information under Section 8(1)(j) of the Act has therefore been correctly applied
by the appellate authority.” Decision of the CIC in Mukesh Kumar vs.
Department of Revenue, Ministry of Finance (February 22, 2006).
7) PAN/TAN are personal information: “PAN is a statutory
number, which functions as a unique identification for each tax payers. Making
PAN public can result in misuse of this information by other persons to quote
wrong PAN while entering into financial transactions and also could compromise
the privacy of the personal financial transactions linked with PAN. This also
holds true for TAN. Information relating to PAN and TAN, including the date of
issue of these numbers, are composite and confidential in nature under Section
138 of the Income Tax Act.” Decision of the CIC in Arun Verma vs. Director
General of Income Tax (Systems), New Delhi (March 3, 2006).
a part of its traditional central banking function, the Reserve Bank has been
acting as a banker to the Central Government as also to the State Governments.
Over the years, commercial banks have also been involved as agents of the Reserve
Bank to carry out such functions. Government business carried out by the
Reserve Bank and by agency banks is subject to many operational and reputational
risks. In order to better manage these risks, the Reserve Bank has taken
a number of measures such as ensuring multiple banking arrangements, nominating
alternate clearing banks and putting in place back-up arrangements. Furthermore,
with a view to controlling and mitigating the operational risk in general and
human risk in particular, the Reserve Bank undertakes periodic reviews and revisions
of operational manuals and work procedure.
IX.73 The Reserve Bank has
taken up the task of introducing Risk-based Internal Inspection across the Bank.
An internal Task Force was constituted in the Inspection Department with the objective
of evolving a framework for a Risk-based Internal Inspection by profiling activities
undertaken, as per inherent perceived risk, in the various offices/departments,
training establishments and subsidiaries. The Reserve Bank has also consulted
the Institute of Internal Auditors (IIA), Mumbai and M/s Ernst & Young in
the matter. A ‘pilot’ on risk assessment has been undertaken by the
Inspection Department with assistance from M/s Ernst & Young at Chandigarh,
Kolkata and Mumbai Regional Offices of the Bank, besides Urban Banks Department
IX.74 The Reserve Bank as the central bank manages the payment
and settlement systems of the country, which also entail counterparty and operational
risks. In the recent past several measures have been taken to manage the
risks in the payment and settlement systems. The Reserve Bank has introduced
the real time gross settlement (RTGS) system, under which processing of payment
instructions or messages is required to be undertaken on a real time basis separately
for individual transactions. Thus, the counterparty risk in the RTGS is
obviated. The attendant problem of excess liquidity requirement under the
RTGS is also effectively managed through liquidity saving features such as queuing,
prioritisation, gridlock resolution mechanism and intra-day liquidity support
from the Reserve Bank. The RTGS is now the core payment system in India
and recognising its risk mitigating features, the netting based inter-bank clearings
(where the settlement of payables and receivables of participants in clearing
is done on a net basis) have almost been closed down.
IX.75 All other payment
systems (other than RTGS) function on a deferred net settlement systems (DNS)
basis. This comprises both large-value payment systems [inter-bank government
securities clearing system, inter-bank foreign exchange clearing system and collateralised
borrowing and lending operations (CBLO)] and retail payment systems [paper-based
MICR and non-MICR clearing systems and high value clearing system; and electronic
systems such as electronic clearing service (ECS-credit and debit), electronic
funds transfer (EFT) system and national electronic fund transfer system (NEFT)].
These are operated by the Reserve Bank, State Bank of India and other public sector
banks. For large value netting systems, clearing is now settled on a central
counterparty arrangement basis, where Clearing Corporation of India Limited (CCIL)
acts as a counterparty. The central counterparty arrangement has since stabilised
and has enabled better management of risks. In respect of cheque clearing
and other low value electronic clearing systems, India has a modified version
of 'unwind' (the system of excluding the defaulting participant and reworking
the settlement as if it never participated in the clearing on that particular
day) which is known as 'partial unwind'. Under this system, in the case
of a default by one or more participants in a DNS system, the instruments drawn
on the defaulter and presented to it are taken back by other participants, while
the value of instruments drawn on other participants and presented by the defaulter
are put in a suspense account.
IX.76 One of the key driving factors in all
the IT initiatives is the need to ensure business continuity in the event of a
contingency. Therefore, in all the systems implemented, particularly the critical
payment system application systems (such as the RTGS, CFMS, Public Debt Office-Negotiated
Dealing System (PDO-NDS) and SFMS), high importance has been given to uninterrupted
availability. Periodical disaster recovery (DR) drills are conducted for all participating
members for these systems. During April 2007, a hardware failure – the first
of its kind during the course of live operations on a regular day since the installation
of these systems in 2001 – pertaining to the mainframe computer system necessitated
a live switchover to the disaster recovery site for the payment system applications.
The recovery from the DR site was done within 4 hours, matching international
IX.77 In view of
the ongoing structural changes in the Indian economy brought out by the forces
of deregulation, liberalisation and growing external integration of the economy,
the importance of timely and adequate analytical inputs for the formulation of
the Reserve Bank’s policies has assumed greater importance. Like other major
central banks, the Reserve Bank has developed its own research capabilities in
the field of economics and statistics, which contribute to a better understanding
of the functioning of the economy and the ongoing changes in the transmission
mechanism. Against this backdrop, the Reserve Bank’s research departments
- Department of Economic Analysis and Policy (DEAP) and Department of Statistical
Analysis and Computer Services (DESACS) - continued to provide analytical research
on various aspects of the Indian economy in the conduct and formulation of policies
by the Reserve Bank.
Department of Economic Analysis and Policy
IX.78 The Department of Economic Analysis and Policy provided policy research
relating to various aspects of the economy. The Department also contributed to
the Reser ve Bank’s effor ts to disseminate information to the public about
its policies and assessments through major publications. The statutory reports
prepared in the Department and released during the year were the Reserve Bank’s
Report, 2005-06, and the Report
on Trend and Progress of Banking in India, 2005-06. The Report on Currency
and Finance, 2005-06 covering the theme “Development of Financial Markets
and Role of the Central Bank” was released during the year. The Report assessed
the various aspects of the development of the different segments of the financial
market and also provided a way forward for each market segment for further development
of financial markets in India. The publication “State
Finances: A Study of Budgets of 2006-07”, providing a comprehensive
assessment of the evolving developments and trends in consolidated finances of
the State Governments, was released during the year.
IX.79 The document
‘Macroeconomic and Monetary Developments’ continued to be released
on a quarterly basis during 2006-07 along with the Governor’s Annual Policy
Statement/Mid-term/ Quarterly Reviews. Presentations on macroeconomic and monetary
developments were made before the Technical Advisory Committee on Monetary Policy
at each of its quarterly meetings during the year.
IX.80 The Depar tment
is entrusted with the responsibility of compiling the major macroeconomic aggregates
such as data on monetary aggregates, balance of payments, consolidated State finances,
and household financial savings. Detailed time-series statistical information
covering various sectors of the Indian economy – real, monetary, fiscal,
external and financial markets – continued to be released through the publication
of Statistics on Indian Economy, 2005-06” for the use of researchers.
The publication provides annual data (in many cases from 1950-51 onwards), quarterly/monthly
data (from 1990-91 onwards) as well as daily data in the case of many financial
variables for the last few years. The Department also disseminated information
on key parameters of the Indian economy in the Reserve Bank’s Monthly Bulletin
and its Weekly Statistical Supplement. The Reserve Bank of India Occasional Papers
continued to publish analytical studies in the areas concerning the Indian economy.
The Department also provided technical inputs to other Departments and participated
in several InterDepartmental Groups. The Department coordinated the work relating
to Article IV consultations with the staff of the IMF. The Department organised
a series of seminars/ lectures by foreign dignitaries and experts from India.
IX.81 The Department provided secretarial support to the
Working Group on Savings for the Eleventh Five Year Plan (2007-08 to 2011-12)
(Chairman: Dr. Rakesh Mohan). The Department organised the 2nd P.R.
Brahmananda Memorial Lecture. The lecture “Governance Institutions and Development”
was delivered by Professor Avinash K. Dixit, John J.F. Sherrerd ’52 University
Professor of Economics, Princeton University on June 28, 2007.
The Development Research Group (DRG), constituted in the Reserve Bank in November
1991, serves as a forum for collaborative research efforts between professional
economists and officers of the Bank. The DRG has published 25 studies since its
inception on a wide range of subjects relating to real, monetary, fiscal, banking,
external and social sectors. During 2006-07, two more studies were initiated:
(i) An Inquiry into the Trends and Pattern of Deposit Growth; and (ii) GDP Indexed
Bonds. The ongoing studies include, inter alia, (i) Municipal Finances
in India; (ii) Dutch Disease Phenomenon in Brazil, Nigeria, Malaysia and Russia
with Lessons for India’s Trade Policy; and (iii) Inequalities in Cooperative
Agricultural Credit: A Case Study of Maharashtra.
IX.83 Since 2001, the
DRG has been entrusted with the work related to the Reserve Bank’s Endowment
Scheme. Under the scheme, financial support is provided to various institutions
for the purpose of research and training in areas of interest to the Reserve Bank.
The financial support is provided through corpus funds. At present, there are
21 corpus funds with a total corpus of around Rs.25 crore. The various institutes
receiving support under the scheme are: University of Mumbai, Mumbai; Centre for
Development Studies, Thiruvanathapuram; Institute of Economic Growth, New Delhi;
Institute for Social and Economic Change, Bangalore; National Institute
of Public Finance and Policy, New Delhi; Council for Social Development, Hyderabad;
Centre for Studies in Social Sciences, Calcutta; Indian Council for Research on
International Economic Relations, New Delhi; Utkal University, Bhubaneswar; Madras
Institute of Development Studies, Chennai; Institute of Rural Management, Anand;
Gokhale Institute of Politics and Economics, Pune; Indian Institute of Management,
Ahmedabad; M.S.University of Baroda,Vadodara; Jawaharlal Nehru University,
New Delhi; Indian Institute of Management, Bangalore; National Council of Applied
Economic Research, New Delhi; Centre for Economic and Social Studies, Hyderabad;
Sameeksha Trust, Mumbai; and National Law University, Jodhpur.
IX.84 The Central Library of the Reserve Bank attached to the Department
of Economic Analysis and Policy (DEAP) plays an important role in the collection,
storage and dissemination of information. The Library has a comprehensive collection
of books, journals, working papers, repor ts, CD-ROMs and other documents. The
Library maintains electronic database of all these documents (OPAC – Online
Public Access Catalogue), which can be accessed through intranet from the Central
Office building and from all other offices of the Reserve Bank. Through its home
page, the Library offers access to various online databases such as ECONLIT, Proquest
Business Periodicals Database (covering 4,000 journals), Elsevier Science Direct
online, DATASTREAM, ISI Emerging Markets Online, Lexis-Nexis Online, and Springer
Online Journals, and discussion papers and special papers of major international
research organisations. Other online services provided by the Library include
PROWESS, CAPEX, and World Bank eLibrary. The Library database has 104,483 records
which cover books and other documents. The Library receives 344 technical journals.
The Library also provides information services and support to training colleges
and libraries in other offices of the Reserve Bank.
Statistical Analysis and Computer Services
IX.85 The Department
of Statistical Analysis and Computer Services (DESACS) provides high quality statistical
service which encompasses collection, compilation, analysis and dissemination
of information relating to various sectors of the economy. The Department is also
entrusted with managing electronic data dissemination platforms, viz.,
Central Database Management System (CDBMS) and Database on Indian Economy (DBIE)
(Box IX.2). Providing technical support to other departments in statistical analysis
and large-scale data management in specific areas also form the core activities
of the Department.
Coverage of Database
on Indian Economy (DBIE)
The Reserve Bank of India provides time
series data to the researchers through a number of channels. One such channel
is web-based access through the Database on Indian Economy (DBIE) introduced on
November 1, 2004. It is accessible from the ‘Database’ page of the
Reserve Bank website (www.rbi.org.in)
or, alternatively, through the URL https://cdbmsi.reservebank.org.in.
Time series data relating to the areas of financial sector, real sector, financial
markets, external sector, public finance and corporate finance are made available
through the DBIE. The coverage of the DBIE is being progressively enlarged on
the basis of feedback received from users and timely availability of data series.
As of now, there are 182 static reports, arranged according to subject area as
well as frequency. In addition, 72 subject area-wise data query reports and 53
frequency-wise data query templates have been provided, which help users to create
their own reports.
A “Standing Advisory Group on DBIE”
was constituted under the chairmanship of Dr. R.B. Barman, Executive Director,
Reserve Bank to review the contents and formats of the DBIE. The Advisory Group
also reviewed metadata, i.e., data definitions and concepts relating
to data series in the database. The users can navigate from metadata to the related
data/reports. They can also navigate from data/ reports to the relevant metadata.
During 2006-07, the Department conducted the following surveys: (a) quarterly
Industrial Outlook Survey, providing insight into the performance and
prospects of the private corporate sector engaged in manufacturing activities;
(b) quarterly Inflation Expectation Surveys covering 4000 households
in 12 cities to gauge inflation expectations; (c) Survey of Small Borrowal
Accounts (each with credit limit of Rs.2 lakh or below) with March 31, 2006
as the reference period; (d) Survey of Inventories, Order Books and Capacity
Utilization, 2006-07 (re-launched in April 2007). The Department also extended
help in conducting a study on services to depositors and small borrowers in rural
and semi-urban areas.
IX.87 In collaboration with concerned official
statistics agencies, the Department is developing methodologies for the Banking
Service Price Index (both direct and intermediation), Housing Price Index, integration
of Consumer Price Index [Urban Non Manual Employees (UNME)] and CPI (Urban), estimation
of GDP and Financial Intermediation Services Indirectly Measured (FISIM) in respect
of mutual funds, and Housing Starts Index. Besides, the Department is engaged
in developing leading economic indicators under the aegis of a Technical Advisory
Group (TAG) for tracking future movements of the Indian economy.
In order to streamline the process of receiving data from commercial banks, the
Reserve Bank has initiated action to implement an on-line returns filing system
(ORFS). The system is expected to: (a) rationalise the data submission process
between banks and the Reserve Bank; (b) standardise exchange of data and metadata
in the banking system; and (c) reduce delays in data receipt and improve its quality.
During 2006-07, the system has been implemented in the case of 17 returns. Phase
II of the project would cover 42 returns and work is on towards implementation
of the system for all data submitted by commercial banks and other financial entities
to the Reserve Bank and other concerned agencies.
IX.89 The Reserve Bank
has joined the Bank for International Settlements (BIS) databank since February
2006 and, on the principle of reciprocity, is providing 57 Indian data series
and receiving more than 35,000 data series from the BIS databank member countries.
Effective February 2007, these data have made available to the users in the Reserve
Bank through the CDBMS platform to facilitate cross-country analysis.
The BIS system of quarterly compilation of International Banking Statistics (IBS)
was implemented by the Reserve Bank in December 1999. The data on IBS of India
comprising 18 statements on Locational Banking Statistics (LBS) and 5 statements
on Consolidated Banking Statistics (CBS) have been supplied to the BIS since March
2001 and the BIS has been including the IBS of India in their publications since
December 2001. During the year, LBS and CBS statements, in the revised format,
based on IBS data for the five quarters end-March 2006 to end-March 2007 were
supplied to the BIS.
IX.91 In order to ensure improvement in quality/
coverage of Basis Statistical Returns (BSR) system, IBS data, external sector
returns and other returns, the Department conducted workshops/training programs
for officials of participating banks at the colleges and various centres of the
IX.92 The Reserve Bank released the ‘Manual on Financial
and Banking Statistics’ based on the recommendation of the Steering Committee
set up by the Ministry of Statistics and Programme Implementation, Government
of India. The Manual is a reference guide and provides a methodological framework
for compilation of statistical indicators encompassing various sectors, viz.,
monetary statistics, banking statistics, external sector statistics and fiscal
sector statistics, and is expected to facilitate better understanding of conceptual
issues and their measurement.
IX.93 To commemorate the birth anniversary
of Professor P.C. Mahalanobis which has been designated as ‘Statistics Day’
by the Government of India, the Department organised the first ‘Annual Conference
on Financial Statistics’ on June 29, 2007. The programme was inaugurated
by Dr. Rakesh Mohan, Deputy Governor, Reserve Bank. Eminent speakers, including
Professor Kirit Parikh, Member, Planning Commission and Professor Kaushik Basu,
Director, Program on Comparative Economic Development, Cornell University delivered
lectures during the conference.
CENTRAL BOARD AND ITS COMMITTEES
IX.94 Seven meetings of the Central Board were held during the year ended
June 30, 2007. Of these, four meetings were held at traditional centres (New Delhi,
Kolkata, Chennai and Mumbai) and three were held at non-traditional centres (Raipur,
Hyderabad and Shimla). Forty-six weekly meetings of the Committee of the Central
Board were held during the year at Mumbai. Three Committees (Committee of the
Central Board, Board for Financial Supervision and Board for Payment and Settlement
Systems) and three sub-Committees (Inspection and Audit SubCommittee, Staff Sub-Committee
and Building SubCommittee) have been constituted to assist the Central Board in
direction of the affairs of the Reserve Bank. The Committee of the Central Board,
as usual, attended to the current business of the Reserve Bank, including approval
of the Reserve Bank’s weekly accounts pertaining to the Issue and the Banking
Departments. The discussions at the meetings of the Central Board broadly covered
matters pertaining to general superintendence and direction of the Reserve Bank’s
affairs, in which the Directors, with their vast experience in diverse fields,
actively contributed to impor tant decisions per taining to currency management,
information technology, human resource development, banking regulation and supervision,
monetary and credit policy, the Reserve Bank’s accounting policy, internal
debt management policy, among others. The deliberations of the Board also focused
on the critical assessment of the percolation of benefits of growth to the poorer
sections of society and on agriculture and rural areas in general.
As a follow-up of the decision taken in the Central Board meeting held on October
12, 2006 at Raipur, a sub-office was opened at Raipur on January 2, 2007. It was
also decided to have a Working Group with the Regional Director, Bhopal as chairman
to look into the improvement of banking ser vices in Chhattisgarh. Following the
presentation of Union Budget, 2007-08 in the Parliament, the Union Finance Minister
met the Directors during the Central Board meeting held at New Delhi on March
9, 2007 and discussed the budget proposals. The Central Board at the meeting held
on May 10, 2007 decided to open a Sub-office at Shimla.
IX.96 Four meetings
of the Inspection and Audit Sub-Committee (IASC), three meetings of the
Building Sub-Committee and one meeting of the Staff Sub-Committee were held during
the year. The Building Sub-Committee advised the Bank on various matters including
construction of staff quar ters, renovation of office and residential buildings
and also reviewed the utilisation of capital budget for the year 2006-07. The
Inspection and Audit Sub-Committee examined the critical areas emanating from
the Management and System Inspections of Central Office departments and Regional
Offices of the Reserve Bank. The Staff SubCommittee reviewed manpower planning
in the Reserve Bank.
Directors/Members of the Central Board/Local
IX.97 Shri Sanjay Labroo was nominated as Director of the
Central Board of the Reserve Bank with effect from January 2, 2007 under Section
8(1) (c) of the Reserve Bank of India Act, 1934 in place of Shri D.S. Brar who
ceased to be a Director of the Central Board with effect from January 2, 2007.
Shri Labroo was nominated on the Inspection and Audit Sub-Committee (IASC) of
the Central Board.
IX.98 Dr. D. Subbarao, Secretary, Department of Economic
Affairs, Ministry of Finance, Government of India was nominated as Director on
the Central Board under Section 8(1)(d) of the Reserve Bank of India Act, 1934,
with effect from May 10, 2007 vice Shri Ashok K. Jha. Dr. Subbarao has
been designated as Finance Secretary and Secretary, Department of Economic Affairs
with effect from July 2, 2007.
IX.99 Prof. Mahendra Singh Sodha, resigned
from the Local Board (Western Area) with effect from May 10, 2007 for personal
IX.100 The Parliamentary
Standing Committee on Finance visited Mumbai on July 4, 2006. The Committee, headed
by Major General (Retd.) B.C.Khanduri, Member of Parliament, held discussions
with the top management.
Central Bank Governance
Issues relating to governance have assumed increased significance in the past
few years. The Reserve Bank has also been striving to align its governance practices
with the best international practices over the years. As a step in this direction,
an internal Working Group was constituted by the Reserve Bank to examine the structure
and practices of governance vis-à-vis best international practices.
While suggesting options to enhance governance, the Group noted that the Reserve
Bank already follows best international practices in a number of areas. The findings
of the Group with appropriate editing/ elaboration are given in Box
Central Bank Governance:
Global Best Practices and the Reserve Bank Practices in the Reserve Bank
1. There should be a conflict resolution mechanism
in connection with foreign exchange reserves and exchange rate issues.
2. Direct credit to the Government should be prohibited or carefully limited to
what is consistent with the monetary policy objectives and targets.
Central bank should be required to report at regular intervals on its past performance
and future plans for monetary policy in accordance with the objectives.
4. There should be a management board comprising Governor, Deputy Governors and
Directors of Departments to attend to the operational issues.
central bank should not be subjected to directions from any other body and should
act only according to central bank laws and pertinent regulations.
The members of the Central Board should not be members/officials of a political
7. Central banks have one or more boards and the management responsibilities
are solely delegated to the Governor in most of the central banks.
The implementation board should consist primarily of management representatives
and a few qualified external members to implement the target(s). Implementation
by Governor dilutes the responsibilities and increases accountability.
9. There should be advisory boards wherever there are policy boards.
10. There should be a Supervisory Board to oversee achievement of objectives/tasks/functions,
financial condition of the Bank, effective internal controls, efficient use of
its resources and to approve the annual report, budget and financial statements
before such information is published.
11. There should be an Audit Committee
having specialised expertise to address issues of internal control and financial
12. Policy boards are generally smaller with about 7-9 members
while the supervisory and management boards are usually larger.
should be taken by a simple majority with a quorum rule requiring the presence
of non-executive directors. The presence of a government representative
(without voting right) to ensure co-ordination as well as consensual and collective
responsibility is desirable. Individual responsibility by all board members is
an essential element of an autonomous and accountable central bank.
The frequency of the Board Meetings should be linked to its functions and the
Supervisory/ Policy Boards should meet at least once in a quarter and when needed.
The composition of the board should ensure an informed and balanced view without
conflict of interests.
16. Internal control systems in central banks
have been toned up with audit committees, strengthening the interface between
the board, the internal and external auditors.
17. The conceptual underpinnings
of financial stability are often not clear while the legal basis for the exercise
of the function varies across central banks.
18. Effective communication
is the bedrock of transparency in central bank functioning.
in the Reserve Bank
The Reserve Bank has arrangements for co-ordinating
with the Government of India in matters relating to deployment of foreign exchange
reserves and the Governor has half yearly meetings with the Finance Secretary.
Under the Fiscal Responsibility and Budget Management Act, 2003, the Reserve
Bank has been prohibited, effective April 1, 2006, from participating in primary
auctions of Government paper.
The Reserve Bank reviews monetary policy
on a quarterly basis. The quarterly reviews by the Reserve Bank encompass review
of past performance and the stance of monetary policy for the next quarter. The
Reserve Bank at its discretion could also announce monetary policy measures any
time in between the quarterly reviews.
In the Reserve Bank, important
operational issues are discussed in the Deputy Governors’ Committee meetings
to which concerned Executive Directors and the Departmental heads are invited.
The Reserve Bank is not subject to directions from any other body in carrying
out its functions. Only Central Government may give directions to the Reserve
Bank after consultations with the Governor, if considered necessary in the public
The Reserve Bank of India Act, 1934 stipulates that a Member
of Parliament or the Legislature cannot become a Director of the Central Board
or a Member of the Local Board.
The Reserve Bank has one Board.
Management responsibilities are entirely vested with the Governor.
Reserve Bank’s Central Board monitors the policy implementation. The
model adopted by the Reserve Bank regarding implementation is working well.
The Committee of the Central Board with a balanced representation of management
representatives and directors meets every week to attend to the current business
of the Bank to assist the Central Board in the monitoring of implementation of
various policy decisions.
The Reserve Bank has set up a number of Technical
Advisory Committees, besides drawing technical help from separate groups set up
for the specific purposes.
In the Reserve Bank, the Central Board carries
out this function through its various committees and sub-committees. A Board for
Financial Supervision, which is a Committee of the Central Board, overseas the
regulation and supervision of the banks and financial institutions. Similarly,
a Board for Payment and Settlement Systems, which is also a Committee of the Central
Board, oversees the regulation and supervision of the payment and settlement systems.
There are other sub-committees looking into various other tasks and functions
of the Reserve Bank.
An Audit Committee consisting of management representatives
and Central Board Directors carries out these functions.
The Reserve Bank’s
Board has provision for 20 members. It is considered appropriate keeping in view
the diverse functions it carries out.
Although the Act provides for voting
rights to Chairman and non-executive directors, this is rarely resorted to in
practice. Decisions are usually taken by consensus. The nominee of the Government
participates in the discussion, but he does not have any voting rights.
The Central Board of the Reserve Bank meets seven times a year (and at least once
in a quarter) and the Committee of the Central Board meets every week.
Although there are no qualifications for being considered as members of the Local
and Central Boards, the Boards generally represent a wide spectrum of experts
representing different streams of specialisation, viz., economists, industrialists,
scientists, legal exper ts, accountants, technology experts, retired bureaucrats
etc. Governor is also the Chairman of the Central Board and the three
Committees of the Central Board, viz., the Committee of the Central Board
(CCB), the Board for Financial Supervision and Board for Payment and Settlement
The Reserve Bank has an elaborate system of audit functions
supervised by the Audit Committees/sub Committees of the Central Board, consisting
of Directors and management representatives.
The setting up of the Board
for Financial Supervision in 1994 as a Committee of the Central Board has strengthened
the oversight of the different segments of the financial sector. In India, there
are separate regulators for banks, stock market, insurance, pension and provident
funds. The coordination of policy issues involving more than one regulator is
facilitated by a High Level Committee headed by Governor, Reserve Bank.
The Reserve Bank has adopted a multi-mode channel for communication by way of:
(i) website, (ii) publications, (iii) monetary policy statements, (iv) speeches
of Governor/ Deputy Governors, (v) daily/weekly statistical dissemination, and
(vi) interaction with media. The recent enactment and implementation of the Right
to Information Act has given further impetus to transparency in the functioning
of the Reserve Bank.
IX.102 A number
of foreign delegations visited the Reserve Bank during the year and interacted
with the top management. The dignitaries included Governors of central banks of
Mexico, Sweden, Russia, France and Germany; Parliamentary delegations from Germany
and the US; and ministerial delegations from Japan, Singapore, Norway and Canada.
Nobel Peace Prize winner, Prof. Muhammad Yunus and Nobel laureate, Prof. Joseph
Stiglitz also visited the Reserve Bank and addressed Directors, staff and other
invitees (Annex III).