General Administration Manual 2009 Volume I Reserve Bank of India

384 Pages·2010·1.97 MB·English

General Administration Manual
2009

Volume I

Reserve Bank of India
Foreword

The Banking Department Manual (1957) contained various instructions
relating to the accounting, establishment and administrative matters
which were required to be adhered to by all the departments of the Bank.
These instructions, as also changes that took place subsequently in the
scope of Bank's activities and it's procedures, were compiled and issued
in the form of "General Administration Manual-1988”, Volume I and
Volume II.

2. The Manual was revised in 2000 to incorporate the changes which
had taken place till that time. In order to facilitate easy reference to the
various provisions contained in the revised General Administration Manual,
2000, the narrative paragraphs were incorporated in Volume I and
proformae of forms and registers prescribed were segregated and put in
Volume II of the Manual.

3. Since the last revision of the Manual in 2000, there have been
numerous changes in the functioning of the Bank. While new departments
have come into existence, some departments/institutions have been
closed/restructured. Further, a lot of change has taken place in the areas
of staff administration, establishment/welfare matters, budget and
financial powers, maintenance of office premises, security arrangements,
use of Bank's cars, house keeping functions, library, liveries, etc. An
attempt has been made to capture these changes in the revised Manual.
Another noticeable change in the revised edition of the Manual is that
Chapter 5 on Inspection and Audit functions has been segregated and
brought out by Inspection Department in a separate Manual viz.
Inspection & Audit Manual.

4. Provisions contained in General Administration Manual (GAM), as
applicable to all the departments of the Bank, are distinct from those
contained in the specific manuals relating to different departments. We
hope that this edition of the GAM will be found useful by all officers and
staff managing day-to-day work of the Bank.
5. A soft copy of the GAM is available on the EKP website of
Department of Administration and Personnel Management, Central
Office, for use by all concerned. The department would endeavour to
update the GAM at more frequent intervals to capture the changes in the
Central Office instructions/guidelines with the ultimate aim of updating
the Manual on real time basis. Comments/suggestions which are likely to
simplify the procedures to improve efficiency in office are welcome.

6. The Bank expresses appreciation of the efforts put in by Shri
Prabal Sen, Principal Chief General Manager and the team of officers in
the Department in bringing out this Manual. Particular mention may be
made of Shri Manoj Sharma and Shri Biplab Chakraborty, General
Managers, Shri U.M.Nayak, Deputy General Manager, Shri K.B.Pandit,
Assistant General Manager, Smt.R.M.Doctor, Manager and Shri M.K.Patni,
Assistant Manager who have taken pains in collecting and editing material
from various Central Office Departments. The Bank also sincerely
appreciates the cooperation extended by the Heads of various Central
Office Departments in preparing and updating the material pertaining to
their areas and various Regional Offices for their valuable suggestion in
revising the Manual.

V.S.Das
Executive Director
Reserve Bank of India
Department of Administration
& Personnel Management
Central Office
Mumbai
December 31, 2009
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GENERAL ADMINISTRATION MANUAL – PART I

Index

CHAPTER 1 ORGANISATIONAL SET-UP OF THE
BANK

CHAPTER 2 STAFF ADMINISTRATION

CHAPTER 3 ESTABLISHMENT MATTERS

CHAPTER 4 BUGDET AND FINANCIAL POWERS

CHAPTER 5 SEPARATE MANUAL ON INSPECTION &
AUDIT FUNCTIONS BROUGHT OUT BY
INSPECTION DEPARTMENT

CHAPTER 6 MAINTENANCE OF OFFICE PREMISES,
SECURITY ARRANGEMENTS AND USE
OF BANK’S CARS

CHAPTER 7 HOUSE KEEPING FUNCTIONS

CHAPTER 8 MISCELLANEOUS
CHAPTER 1-ORGANISATIONAL SET-UP OF THE BANK
1.1 Central Board 1
1.2 Governor/Deputy Governors 1
1.3 Directors 1
1.4 Chief Executive Authority 1
1.5 Local Boards 2
1.6 Committee of the Central Board 2
1.7 Sub-Committees of the Central Board 3
1.8 (i) Board for Financial Supervision 3

(ii) Board for Regulation and Supervision of Payment and 4
Settlement Systems

1.9 (i) Deputy Governors' Committee 5

(ii) Top Management Group 5
(iii) Committee of Executive Directors 5
1.10 Central Office – Structure 5
1.11 Regional Offices/Branches – Set-up 6
1.12 Full-fledged Offices/Branches 7
1.13 Internal Administration-Conduct of 8
Annex 9

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CHAPTER 1
ORGANISATIONAL SET-UP OF THE BANK
1.1 Central Board of Directors
The general superintendence and direction of the affairs and business of the
Bank are vested in a Central Board of Directors which consists of:
i) Governor and not more than four Deputy Governors appointed by the
Central Government.
ii) Four Directors nominated by the Central Government, one from each of
the four Local Boards as constituted under Section 9 of the Reserve Bank
of India Act, 1934.
iii) Ten Directors nominated by the Central Government representing various
economic and functional interests.
iv) One Government official nominated by the Central Government usually
the Secretary from the Ministry of Finance.
1.2 Governor/Deputy Governors
The Governor and Deputy Governors are full time Directors of the Bank and are
appointed by the Central Government for a period not exceeding five years at a time.
The Governor is the Chairman of the Central Board of Directors. The Deputy
Governors are not entitled to vote but on occasions when the Governor is for any
reason unable to attend any meeting of the Central Board, the Deputy Governor
authorised by the Governor in writing to act on his behalf is entitled to vote.
1.3 Directors
The Directors nominated to the Central Board from the Local Boards shall hold
Office during their tenure with the Local Boards. Directors nominated to represent
the professional and functional interests may hold Office for a period of four years
and thereafter until their successors are nominated. A retiring Director is eligible for
re-nomination if he is not otherwise disqualified.
1.4 Chief Executive Authority
The Chief Executive Authority of the Bank is the Governor. In the absence of the
Governor, the Deputy Governor nominated by him performs functions of the former.
The Governor is assisted in the performance of his duties by Deputy Governors. The
Governor and Deputy Governors are assisted by Executive Directors. The sphere of
operations / allocation of work areas / Departments among the Deputy Governors
and Executive Directors are decided by the Governor.
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1.5 Local Boards
For each of the four regional areas of the country specified in the First Schedule to
the Reserve Bank of India Act, 1934, a Local Board has been constituted by the
Government of India under Section 9 of the Reserve Bank of India Act, 1934. The
Local Boards have their regional headquarters at Kolkata, Chennai, Mumbai and
New Delhi. They function under the directions of the Central Board. Each Local
Board consists of five members appointed by the Central Government for four years
to represent, as far as possible, territorial and economic interests and the interests of
co-operative and indigenous banks. The members elect a Chairman from among
themselves. The functions of the Local Boards are to advise the Central Board on
such matters as may generally or specifically be referred to them and to perform
such duties as the Central Board may delegate to them.
In terms of Section 9(4) of the Reserve Bank of India Act, 1934 the Central Board of
the Bank has delegated the following matters /areas to be deliberated upon by the
Local Boards :
i) Position of Urban Co-operative Banks in the Local Area
ii) Position of NBFCs in the Local Area
iii) Currency Management in the Local Area
iv) Customer Service, complaints, grievances, etc. in the Local Area (including
implementation of the Banking Ombudsman Scheme)
v) Government Sponsored Programmes
vi) Economic and financial developments or market intelligence of the Local Area
relevant to RBI
viii) Review the functions of State Level Bankers Committee (SLBC)
1.6 Committee of the Central Board
In accordance with the provisions of Reserve Bank of India General Regulations,
1949 there is a Committee of the Central Board consisting of the Governor, Deputy
Governors and other Central Board Directors who may at the time be present in the
area in which the meeting is held. This Committee meets once a week, normally on
Wednesdays, at the Office of the Bank where the Governor has his headquarters, to
attend to the regular current business of the Bank. Executive Directors of the Bank
attend these meetings as special invitees.
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1.7 Sub-Committees of the Central Board
The Bank has constituted three Sub-Committees of the Central Board viz., the Staff
Sub-Committee which attends to the staff matters, the Building Sub-Committee
which attends to the building projects and the Inspection and Audit Sub-Committee
which reviews the Inspection and Audit Reports on Offices/ Central Office
Departments. The tenure of these Sub-Committees is two years and their role is
purely advisory in nature. The composition of these Sub-Committees is as under:
i) Staff Sub-Committee comprises two or more Directors of the Central Board (one
of them to be nominated as Chairman), the Deputy Governor and the Executive
Director in-Charge of the Department of Administration and Personnel
Management (DAPM), one or more persons of eminence in the field of Personnel
Management and/or General Administration and one or two top executives of the
Bank and Principal Chief General Manager/Chief General Manager in-Charge of
DAPM as Member-Secretary. The other Deputy Governors and Executive
Directors may attend the meetings of the Sub-Committee by invitation.
ii) Building Sub-Committee comprises two or more Directors of the Central Board,
(one of them to be nominated as Chairman), the Deputy Governor and the
Executive Director in-Charge of Premises Department, four Architects/Engineers
of repute, and Chief General Manager of Premises Department as Member-
Secretary.
iii) Inspection and Audit Sub-Committee comprises four Directors of the Central
Board (one of them to be nominated as Chairman), the Deputy Governor and the
Executive Director in-Charge of the Inspection Department, Executive Director in-
Charge of DAPM. Chief General Manager, Inspection Department acts as the
Member-Secretary. The other Deputy Governors and Executive Directors may
attend the meetings of the Sub-Committee by invitation.
1.8
(i) Board for Financial Supervision
Board for Financial Supervision (BFS) has been set up by the Central Board under
Section 58(2) of the Reserve Bank of India Act, 1934 to perform functions and
exercise powers of supervision and inspection vested in the Bank under Reserve
Bank of India Act,1934 and Banking Regulation Act, 1949 in relation to different
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segments of the financial system, viz., banks, non-banking financial institutions, and
other financial institutions.
The Board consists of the Governor, Deputy Governors and four Directors from the
Central Board of the Bank to be nominated by the Governor as members. The
Governor, who is the Chairman, nominates one of the Deputy Governors as full time
Vice Chairman of the BFS.
Considering the need for special attention towards audit of accounts in banks and to
review the guidelines on empanelment of statutory auditors etc., the Board for
Financial Supervision (BFS) has set up a Sub-Committee (Audit) in its 2nd Meeting
held on January 25, 1995 in exercise of powers conferred in terms of Regulation 12
(1) of the RBI (BFS) Regulations, 1994. In terms of Regulations ibid, the Sub-
Committee is chaired by the Vice-Chairman, BFS and includes two directors from
BFS as members. The term of the Sub-Committee, initially set up for two years, has
been extended from time to time along with the extension of the term of Members of
BFS.

(ii) Board for Regulation and Supervision of Payment and Settlement Systems
The Payment and Settlement Systems Act, 2007 empowers the Reserve Bank of
India to regulate and supervise the payment and settlement systems in the country.
The Board for Regulation and Supervision of Payment and Settlement Systems
(BPSS), a committee of the Central Board, which earlier functioned under the
Reserve Bank of India (Board for Regulation and Supervision of Payment and
Settlement Systems) Regulation, 2005 has been reconstituted in accordance with
the provisions of the Board for Regulation and Supervision of Payment and
Settlement Systems Regulations, 2008 in the wake of enactment of Payment and
Settlement Systems Act, 2007. The BPSS is empowered to exercise all powers
vested in the Bank in terms of the provisions of the Act ibid. .
The Board consists of the Governor as the Chairperson, Deputy Governors and
three Directors of the Central Board of the Bank to be nominated by the Governor as
members. The Deputy Governor in charge of the Department of Payment and
Settlement Systems is the Vice Chairperson of the Board. Two Executive Directors
nominated by the Chairperson and the Principal Legal Advisor of the Bank are
permanent invitees to the meetings of the Board. Persons with experience in the
fields of payment and settlement systems can be invited to the meetings of the
BPSS either as permanent invitees or as ad-hoc invitees.
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1.9
(i) Deputy Governors’ Committee
The Deputy Governors’ Committee, constituted with the approval of Governor in
2004, takes formal policy decisions on matters/issues involving various departments
of the Bank. The Committee is mandated to meet every week generally on
Wednesdays, subject to availability of quorum. As regards quorum of the
Committee, one DG can get leave of absence. Governor and DGs are authorized to
mark issues to the Committee. Secretary's Department provides secretarial
assistance to the Committee.
(ii) Top Management Group
Top Management Group (TMG) comprises the Governor, Deputy Governors and
Executive Directors. The meetings are held every week on Tuesdays. No prior
agenda is prepared for the meetings. Secretary's Department provides Secretarial
assistance to the Group.

(iii) Committee of Executive Directors

The Committee of the Executive Directors is empowered to sanction expenditure in
accordance with the powers delegated to the committee under RBI Expenditure Rules,
2009. The minimum quorum for sanction of Expenditure will be any three Executive
Directors (EDs) including the ED of the concerned Department.

1.10 Central Office – Structure
The Central Office of the Bank is situated at Mumbai. The Principal Chief General
Manager’s Office (Department of Administration & Personnel Management) is the
principal administrative Office of the Bank. The other Central Office Departments
are:
(i) Customer Service Department (CSD)
(ii) Department of Banking Operations and Development
(iii) Department of Banking Supervision
(iv) Department of Communication
(v) Department of Currency Management
(vi) Department of Economic Analysis and Policy
(vii) Department of Expenditure & Budgetary Control
(viii) Department of External Investments and Operations
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