Banking Awareness Notes Subsidiaries of RBI for IBPS/SBI PO & Clerk
Subsidiaries of RBI
The structure, functions & subsidiaries of RBI is the most important topic of GA section from which questions are asked in almost all banking and insurance exams. Apart from it, you can also expect questions being asked about this topic in the interview round of banking exams.
- The Reserve Bank of India is the Central bank of India.
- It was established on April 1, 1935, under the provisions of the Reserve Bank of India Act, 1934.
- RBI was nationalized on January 1, 1949.
- RBI manages the monetary policy to determine policy rates like Repo rate, Reverse repo rate etc.
Before we move on to the subsidiaries of RBI, let us understand the concept of subsidiary first.
A subsidiary bank, or a subsidiary company, is a bank which is owned or controlled by any other bank or company. The subsidiary company is called the daughter company, and the company holding control over the other is known as the Parent company. i.e., the entire paid-up capital is contributed by the Parent Company.
The Reserve Bank of India has three fully owned subsidiaries:
- National Housing Bank (NHB)
- Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
- Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
National Housing Bank (NHB):
NHB is the apex level institution for housing &was established on 9 July 1988 under the National Housing Bank Act, 1987 with its Head Office in New Delhi.
It aims at-
- Promoting housing finance institutions both at local and regional levels
- Providing financial and other support to such institutions
- Promoting the market potentials to cater the housing needs of all segments of the population
- Giving directions to the housing finance institutions
- Supervising Housing Finance Company (HFCs) through On-site & Off-site surveillance
- Strengthening the credit delivery network for housing finance
MD & CEO of NHB – Shri Sriram Kalyanaraman
Deposit Insurance and Credit Guarantee Corporation of India (DICGC):
DICGC was established on established on 15 July 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 with its Head Office in Mumbai.
Its four branches are situated in Chennai, Nagpur, Kolkata, and New Delhi.
The main function of DICGC is to provide insurance of deposits and guarantee the credit facilities.
It insures all bank deposits, such as saving, fixed, current, recurring, etc. except –
- Deposits of foreign Governments;
- Deposits of Central/State Governments;
- Inter-bank deposits
- Deposits of the State Land Development Banks with the State co-operative banks;
- Any amount due on account of any deposit received outside India
- Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.
It provides insurance cover of Rs. 1, 00,000/- per individual.
Executive Director – Malvika Sinha
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL):
BRBNMPL was established on 3rd February 1995as the Private Limited Company under the Companies Act 1956 with the sole aim to design, print and supply banknotes to the Reserve Bank of India(RBI) so that they can meet the demand of the banknotes in the country.
The headquarter of BRBNMPL is at Bangalore, Karnataka and has currently two banknote presses in Mysore and Salboni.
Chairman- Shri B.P. Kanungo
Managing Director – Shri S.K. Maheshwari
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