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Subsidiaries of RBI

What is a Subsidiary: A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company. Do you know how many subsidiaries does the Reserve Bank of India (RBI) has? There are five fully owned subsidiaries of RBI: DICGC, BRBNMPL, ReBIT, IFTAS and RBIH. RBI has one associate NCFE. An associate company is one where the parent company holds 20-50% of the stake.

Earlier National Housing Bank(NHB) was also a subsidiary of RBI. However now RBI has divested its entire stake in NHB and hence now it is not a subsidiary of RBI. It is fully owned by the Government of India now. However, you can read about NHB in this post.

Fully owned subsidiaries of RBI :

1. Deposit Insurance and Credit Guarantee Corporation of India(DICGC)
2. Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)
3. Reserve Bank Information Technology Private Limited (ReBIT)
4. Indian Financial Technology and Allied Services (IFTAS)
5. Reserve Bank Innovation Hub (RBIH)

Associate of RBI:

1. National Centre for Financial Education (NCFE)

Hence RBI has 5 wholly-owned subsidiaries and 1 associate.

Read about all these in detail below:

1. Deposit Insurance and Credit Guarantee Corporation of India (DICGC)

• Establishment: Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978.
• DICGC was formed by merging Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI)
• The functions of the DICGC are governed by the provisions of DICGC Act 1961 framed by the Reserve Bank of India.
• Role of DICGC: DICGC was established for providing insurance of deposits and guaranteeing of credit facilities. At present, DICGC insures each depositor of a registered insured bank upto a maximum of Rs.5 Lakh for all bank deposits, such as saving, fixed, current, recurring deposits. The credit guarantee scheme of DICGC is presently not operative due to availability of alternative guarantee schemes.
• Authorised Capital : Rs 50 Crore.
• Headquarters: Mumbai
• Banks under the purview of DIGCG: Deposit insurance is compulsory for all banks in the country. Therefore, all public sector banks, private sector banks, local area banks, regional rural banks, small finance banks, payments banks, branches of foreign banks functioning in India, all State, Central and Primary cooperative banks (Urban Cooperative Banks) are registered and insured by the DICGC.

Maximum deposit amount insured by the DICGC: Rs 5 lakh (Principle + Interest)

• If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.
• DICGC  has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half-year periods.

When does DICGC pays: 

1. If a bank goes into liquidation
2. If a bank is reconstructed or amalgamated / merged with another bank

Chairman:Dr. M.D. Patra

2. Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL)

• Establishment: Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established by Reserve Bank of India (RBI) as its wholly owned subsidiary on 3rd February 1995. The BRBNMPL has been registered as a Private Limited Company under the Companies Act 1956.
• Role of BRBNMPL: To augument the production of bank notes in India to enable the RBI to bridge the gap between the supply and demand for bank notes in the country.
• Headquarters: Bengaluru
• Chairman:Shri T. Rabi Sankar

The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal.

• Extra Info : Apart from this, RBI has two more printing press both owned by Government of India: Nasik (Maharashtra) and Dewas (Madhya Pradesh)
• Coins are minted in four mints owned by the Government of India. The mints are located at Mumbai, Hyderabad, Calcutta and NOIDA.

3. Reserve Bank Information Technology Private Limited (ReBIT)

• Established: 2016
• Role of ReBIT: It has been set up by the Reserve Bank of India, for its IT and cybersecurity needs and to ensure cyber resilience of Indian banking.
• Deliver and manage IT projects of RBI; Assist RBI in performing risk-based supervision of regulated entities; Safeguard RBI assets by detecting and responding to cyber-threats.
• Chairman: Shri. Kiran Karnik

4. Indian Financial Technology and Allied Services (IFTAS)

• Function and Role of IFTAS– Financial Technology and Allied Services (IFTAS) is a wholly-owned subsidiary of the Reserve Bank of India, mandated to design, deploy & support IT-related services to all Banks and Financial Institutions in the country and also to the Reserve Bank of India.
• It manages & operates the Financial messaging platform (SFMS) that comprising of Real-Time Gross Settlement and National Electronic Funds Transfer.
• INFINET is also managed by IFTAS. 
• IFTAS operates CLOUD (Indian Banking Community Cloud), the only community cloud in the country, hosting cloud based solutions (Platform, Core, Channel, Corporate, etc.) dedicated to the Banking & Financial Community.
• The IFTAS has taken over the Indian FInancial NETwork (INFINET), Structured Financial Messaging System (SFMS) and the Indian Banking Community Cloud (IBCC) from the IDRBT, effective April 01, 2016. 
• The Director, IDRBT, is the Chairman of The Indian Financial Technology and Allied Services. 
• Chairman of IFTAS: Shri. Vivek Deep

5. Reserve Bank Innovation Hub (RBIH)

• The RBIH has been registered as a section 8 company under Companies Act 2013 having its registered office at Hyderabad.
• The Reserve Bank of India has set up Reserve Bank Innovation Hub (RBIH) to promote innovation across the financial sector by leveraging on technology and creating an environment that would facilitate and foster innovation.
• RBIH would be guided and managed by a Governing Council (GC) led by a Chairperson.  Shri Senapathy (Kris) Gopalakrishnan, co-founder and former co-Chairman, Infosys, as the first Chairperson of the Governing Council of RBIH. The governing council of RBIH has 9 more members apart from the Chairperson.
• The Board of Reserve Bank Innovation Hub (RBIH) has appointed Rajesh Bansal as the Chief Executive Officer (CEO) of the RBIH.

6. National Centre for Financial Education (NCFE)

• National Centre for Financial Education (NCFE) is a Section 8 (Not for Profit) Company promoted by 
  • Reserve Bank of India (RBI) [30% stake]
  • Securities and Exchange Board of India (SEBI), [30% stake]
  • Insurance Regulatory and Development Authority of India (IRDAI) [30% stake] and
  • Pension Fund Regulatory and Development Authority (PFRDA) [10% stake]
• The objective of NCFE: To promote Financial Education across India as per the National Strategy for Financial Education (NSFE) of the Financial Stability and Development Council (FSDC). The initial share capital of NCFE is Rs. 100 Crore.
• Chairman of NCFE: Shri Girraj Prasad Garg

National Housing Bank (NHB)

• Establishment: NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.
• Role of NHB: To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
• Authorised Capital: ₹1,450 crore
• Owned: Fully owned by Government of India (100%)
• Headquarters: New Delhi
• NHB RESIDEX– It is India’s first official housing price index, was an initiative of the National Housing Bank (NHB), undertaken at the behest of the Government of India, Ministry of Finance.

 

 

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