The RBI plays an important part in the development strategy of the Government of India. It is a member bank of the Asian Clearing Union. The general superintendence and direction of the RBI is entrusted with the 21-member-strong Central Board of Directors—the Governor (currently Duvvuri Subbarao), four Deputy Governors, two Finance Ministry representative, ten Government-nominated Directors to represent important elements from India's economy, and four Directors to represent Local Boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these Local Boards consist of five members who represent regional interests, as well as the interests of co-operative and indigenous banks.
Objectives and Role of BFS
Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. The Board is required to meet normally once every month. It considers inspection reports and other supervisory issues placed before it by the supervisory departments.
Focus of BFS is on:
a) supervision of financial institutions
b) consolidated accounting
c) legal issues in bank frauds
d) divergence in assessments of non-performing assets and
e) supervisory rating model for banks. Main Objectives of RBI are the following: Monetary Authority
Formulates implements and monitors the monetary policy
Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors