Govt appoints the chartered accountant and journalist Swaminathan Gurumurthy and businessman Satish Kashinath Marathe as a part-time, non-official director on the Reserve Bank of India’s central board for four years.
Swaminathan Gurumurthy is editor of Tamil political weekly Thuglaq and co-convenor of the Swadeshi Jagaran Manch whereas Satish Kashinath holds a good grip in the corporate sector and supports NGO named as Sahakar Bharati.
The govt officials informed that both of the new appointments were made after a proposal from the department of financial services. It was approved as per provision of section 81C of the RBI Act, 1934 on Tuesday by the cabinet.
Tii now 10 directors had been appointed by govt on the RBI board which was the maximum permissible limit. Two govt officials also hold the position in RBI board.
Reserve bank of India is the Centra banking institution of India which governs monetary policy of Indian Rupee. It was established under Reserve Bank of India Act, 1934. It began its operations on 1 April 1935. The RBI was nationalised on 1 January 1949.
It has 21-member central board of directors for general superintendence and direction of the RBI. The central board of directors consist of the governor, 2 finance minister,4 deputy governor, 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards consists of 5 members who represent regional interests, the interests of co-operative and indigenous banks. It even has 10 government-nominated directors to represent important elements of India’s economy.
RBI which is also known as a banker’s bank maintains banking accounts of all registered banks. Commercial banks generate credit and RBI holds the responsibility to control the credit through the CRR, bank rate and open market operations. The RBI facilitates the clearing of cheques between the commercial banks and it even cooperates for the inter-bank transfer of capitals. RBI also guides the banks on various corporate related issues.
The headquarter of Banker’s bank is in Mumbai, Maharashtra, India and it is headed by Governor Urjit Patel.