RBI Annual Report FY 2025-26 explains RBI governance, Central Board, HR initiatives, Utkarsh 2029, risk management, internal audit and organisational reforms.
The RBI Annual Report FY 2025-26 shows that the Reserve Bank’s effectiveness depends not only on monetary policy, regulation and supervision, but also on the strength of its governance structure, human resources, risk management, internal audit and organisational strategy. During the year, RBI reviewed its governance and organisational arrangements, strengthened employee capability-building, rolled out Enterprise-wide Risk Management (ERM) Framework 2.0, automated audit processes, strengthened business continuity arrangements and formulated Utkarsh 2029, its medium-term strategy framework for April 2026 to March 2029.
This makes Part 26 especially important for the RBI Grade B Promotion Exam, because questions can come not only from economic statistics but also from RBI’s institutional structure, committees, strategy frameworks, HR initiatives and governance mechanisms.
1. Governance, Human Resources and Organisational Management
Chapter XI of the Annual Report deals with:
- Governance structure
- Human resource development
- Enterprise-wide risk management
- Internal audit and inspection
- Corporate strategy and budgeting
- Rajbhasha
- Premises and organisational infrastructure.
The central theme is:
Strengthening RBI’s organisational capacity to meet evolving functional requirements.
The Annual Report highlights five particularly important organisational developments during FY 2025-26:
- Focused human-resource development.
- Formulation of Utkarsh 2029.
- Strengthening of business continuity.
- Rollout of ERM Framework 2.0.
- Examination of AI/ML adoption in internal audit.
2. RBI Central Board — The Apex Governance Structure
The Central Board is the key governing body of RBI.
The Board structure includes:
- The Governor
- Deputy Governors
- Directors nominated under different provisions of Section 8 of the RBI Act, 1934.
The Governor is the:
Chairperson of the Central Board.
The Board is supported by important committees, particularly:
- Committee of the Central Board (CCB)
- Board for Financial Supervision (BFS)
Both are headed by the Governor.
There are also five important subcommittees headed by non-official Directors:
- Audit and Risk Management Sub-Committee (ARMS)
- Human Resource Management Sub-Committee (HRM-SC)
- Building Sub-Committee (Building SC)
- Information Technology Sub-Committee (IT-SC)
- Strategy Sub-Committee (Strategy SC)
Exam Point
Do not confuse:
Central Board → overall governance
with:
BFS → financial supervision
and:
CCB → Committee of the Central Board.
3. Central Board Meetings During FY 2025-26
During FY 2025-26:
Central Board held 8 meetings.
The:
Committee of the Central Board held 46 meetings
including:
34 e-meetings.
This illustrates the continued use of technology in institutional governance.
The Standing Committee consisting of three non-official Directors functioned in place of the four traditional Local Boards for the Northern, Western, Eastern and Southern areas. It held:
2 meetings for each area
during the year.
4. Changes in RBI’s Senior Leadership
The Annual Report records important changes in the Deputy Governor-level leadership.
M. Rajeshwar Rao
His tenure as Deputy Governor ended on:
October 8, 2025.
Shirish Chandra Murmu
He was appointed Deputy Governor with effect from:
October 9, 2025.
T. Rabi Sankar
His tenure ended on:
May 2, 2026.
Rohit Jain
He was appointed Deputy Governor with effect from:
May 4, 2026.
The Annual Report also records the nomination of:
Anuradha Thakur
as a Central Board Director with effect from:
July 24, 2025.
Exam Tip
For promotion-exam preparation, distinguish between:
- Governor
- Deputy Governors
- Directors nominated under Section 8
- Local Board arrangements
- Central Board committees.
5. Human Resource Management — The People Side of RBI
The Human Resource Management Department (HRMD) focused on:
- Continuous capacity building
- Structured training
- Skill upgradation
- Employee engagement
- Feedback mechanisms
- Employee well-being.
The objective is not simply to recruit people but to ensure that RBI’s workforce remains capable of handling:
- New regulatory responsibilities
- Digitalisation
- AI
- Cyber risks
- Financial innovation
- Increasingly complex financial markets.
6. Skill-Gap Assessment and MOOCs
During FY 2025-26, RBI worked on identifying:
Skill gaps
among its employees.
A committee report on skill gaps was under consideration.
RBI also experimented with:
Massive Open Online Courses (MOOCs)
as a method of employee capacity building.
The pilot was considered successful and:
Full-scale implementation was underway.
This is significant because traditional classroom training alone is increasingly insufficient for a technology-intensive central bank.
7. RBI’s Training Infrastructure
RBI has a network of specialised training establishments.
Important institutions include:
- Reserve Bank Staff College (RBSC), Chennai
- College of Agricultural Banking (CAB), Pune
- Centre of Excellence / training establishment at Mumbai
- Enterprise Computing and Cybersecurity Training Institute (ECCTI), Bhubaneswar
- Four Zonal Training Centres located at Mumbai, Delhi, Kolkata and Chennai.
These institutions support skill development across RBI’s workforce.
8. Study Leave and Professional Development
During FY 2025-26:
17 officers took study leave
of whom:
9 went overseas.
This reflects RBI’s emphasis on advanced professional and academic exposure.
9. Employee Engagement: VOICE and Vartalap
RBI also used structured employee-engagement mechanisms.
VOICE
The:
VOICE
initiative conducted:
9 sessions involving 181 participants.
Vartalap
The:
Vartalap
initiative organised:
217 town halls involving 11,035 employees.
These mechanisms support communication between employees and the organisation and provide channels for feedback and engagement.
10. Recruitment and RBI Workforce
During calendar year 2025:
247 employees were recruited.
The total staff strength as of:
December 31, 2025
was:
13,220 employees.
This represented a:
2.2% decline
in staff strength.
Other workforce figures included:
- 1,073 ex-servicemen
- 324 persons with benchmark disabilities (PwBD).
These figures are relevant when questions ask about RBI’s human-resource profile.
11. POSH and Workplace Governance
RBI continued its institutional mechanisms relating to prevention of sexual harassment.
During the year:
- 7 fresh complaints were received.
- 8 complaints were disposed of.
The point to remember is that organisational governance includes not merely financial controls but also:
workplace conduct, employee protection and institutional accountability.
12. RTI Management
RBI’s Right to Information framework also generated significant workload.
During FY 2025-26:
31,995 RTI applications
and:
2,567 appeals
were recorded.
RBI also conducted:
- 6 training programmes
- 129 sessions
related to RTI.
13. Enterprise-Wide Risk Management — ERM Framework 2.0
One of the most important organisational developments is:
ERM Framework 2.0
The Risk Monitoring Department (RMD) acts as the:
Second line of defence
within RBI’s three-tier internal risk-management architecture.
The broad structure is:
First line
Business areas
→ own and manage risks.
Second line
Risk Monitoring Department
→ provides risk oversight and monitoring.
Third line
Inspection Department
→ provides independent assurance through internal audit.
14. What Changed Under ERM 2.0?
The Annual Report describes ERM 2.0 as a roadmap for the next decade.
Its orientation moves beyond a purely compliance-driven approach towards:
- Value creation
- Anticipation of emerging risks
- Advanced analytics
- Risk culture
- Risk awareness.
Exam Concept
The shift can be remembered as:
Compliance-driven → Risk-aware → Anticipatory → Analytics-driven
This is an important institutional transformation.
15. Next Gen-IRIS
Another major risk-management development was:
Next Gen-IRIS
which became operational from:
April 1, 2026.
The revised operating procedures under the:
IS Policy 2024
were completed in December 2025.
The broader objective is to strengthen RBI’s internal information-security and risk-management architecture.
16. Internal Audit — Third Line of Defence
The Inspection Department functions as the:
Third line of defence
in RBI’s risk-management structure.
During FY 2025-26, it worked on:
- Revision of concurrent audit processes
- Review of the ARMS Charter
- Automation of audit processes
- AI/ML feasibility in internal audit.
Importantly:
Audit processes were fully automated through the Audit Management System (AMS).
17. AI/ML in Internal Audit
RBI constituted an internal Working Group to examine:
The feasibility of using AI and Machine Learning in internal audit.
This is consistent with the wider pattern visible throughout the Annual Report:
AI in statistics
→ forecasting and nowcasting
AI in supervision
→ cyber and fraud analytics
AI in FinTech
→ MuleHunter.ai and ULI
AI in internal audit
→ exploring intelligent audit capabilities.
Thus, AI adoption is becoming an institution-wide theme rather than a specialised FinTech initiative.
18. Corporate Strategy and Budget Management
The:
Corporate Strategy and Budget Department (CSBD)
handles important functions including:
- Corporate strategy
- Annual budget
- Expenditure
- Business continuity
- Institutional planning.
During FY 2025-26, CSBD:
- Reviewed regulatory approvals.
- Reviewed Citizen’s Charter services.
- Rationalised timelines for various services.
- Formulated Utkarsh 2029.
- Developed a Standard Operating Procedure for business continuity during crises.
19. Utkarsh 2029 — RBI’s Medium-Term Strategy
This is one of the most important topics in Part 26.
What is Utkarsh?
Utkarsh is RBI’s:
Medium-term strategy framework to achieve excellence in the performance of RBI’s mandates and strengthen the trust of citizens and other institutions.
The Annual Report states:
- Utkarsh 2.0: January 2023 – December 2025
- Utkarsh 2029: April 2026 – March 2029.
Remember:
Utkarsh 2.0 → 2023–2025
Utkarsh 2029 → 2026–2029
20. The Six Pillars of Utkarsh 2029
Utkarsh 2029 is built around a three-year horizon and a six-pillar strategy.
Its broad strategic pillars focus on:
- Strengthening regulations
- Customer-centric financial inclusion
- Deepening financial markets
- Technology agility
- Internationalisation
- Building a future-ready organisation
These pillars demonstrate that RBI’s medium-term strategy is broader than monetary policy.
It encompasses:
Regulation + inclusion + markets + technology + internationalisation + organisational capability
21. Business Continuity Management
A central bank must continue functioning even during:
- Natural disasters
- Cyber incidents
- Technology disruptions
- Operational disruptions
- Other crises.
Therefore, RBI strengthened its:
Business Continuity Plan / Business Continuity Management framework.
CSBD developed a:
Standard Operating Procedure for business continuity during crisis situations.
An interactive dashboard and crisis-response tool were also developed as part of business-continuity arrangements.
22. Citizen’s Charter
RBI also reviewed its Citizen’s Charter.
The number of services covered was:
204 services from July 1, 2025
and was subsequently rationalised to:
200 services by March 2, 2026.
Performance against the Citizen’s Charter is:
Published monthly.
This is important because it connects RBI’s internal administration with:
Transparency + service delivery + accountability.
23. Rajbhasha
The Rajbhasha Department continued implementation of the:
Official Language Policy of the Government of India.
The Annual Report also records publication of:
Sanchayika
on:
August 14, 2025
as part of RBI’s language-related initiatives.
For examination purposes, the important conceptual point is that Rajbhasha is an institutional function within RBI’s organisational-management framework.
24. Green RBI Infrastructure
RBI’s organisational management also includes sustainability in its physical infrastructure.
At end-March 2026, green infrastructure included:
Solar capacity of 4,725 kWp
across:
- 29 office premises
- 63 residential premises.
This reflects the incorporation of sustainability into RBI’s institutional infrastructure.
25. External Institutions Supported by RBI
RBI provides financial support to selected external institutions.
Important institutions include:
- Indira Gandhi Institute of Development Research (IGIDR)
- CAFRAL
- Indian Institute of Bank Management (IIBM)
- National Institute of Bank Management (NIBM)
- LSE India Observatory / IG Patel Chair.
During FY 2025-26, grants included approximately:
| Institution | Grant |
|---|---|
| IGIDR | ₹33.7 crore |
| CAFRAL | ₹18.6 crore |
| IIBM | ₹1.01 crore |
| NIBM | ₹4.2 crore |
| LSE India Observatory / IG Patel Chair | ₹0.95 crore |
These institutions contribute to research, banking education and financial-sector capacity building.
26. A Crucial Conceptual Map for the Exam
This entire chapter becomes easier if you remember the following structure:
| Function | RBI Department / Mechanism |
|---|---|
| Overall governance | Central Board |
| Financial supervision | BFS |
| Central Board support | CCB |
| Human resources | HRMD |
| Risk oversight | RMD |
| Internal audit | Inspection Department |
| Corporate strategy/budget | CSBD |
| Business continuity | CSBD / BCM framework |
| Medium-term strategy | Utkarsh 2029 |
| Audit automation | AMS |
| Enterprise risk framework | ERM 2.0 |
| Official language | Rajbhasha Department |
| Physical infrastructure | Premises Department |
27. Important Numbers to Memorise
| Indicator | FY 2025-26 Figure |
|---|---|
| Central Board meetings | 8 |
| CCB meetings | 46 |
| CCB e-meetings | 34 |
| Standing Committee meetings per area | 2 |
| Officers on study leave | 17 |
| Overseas study leave | 9 |
| VOICE sessions | 9 |
| VOICE participants | 181 |
| Vartalap town halls | 217 |
| Vartalap participants | 11,035 |
| Employees recruited in 2025 | 247 |
| Staff strength Dec. 31, 2025 | 13,220 |
| Staff-strength change | -2.2% |
| Ex-servicemen | 1,073 |
| PwBD employees | 324 |
| RTI applications | 31,995 |
| RTI appeals | 2,567 |
| Citizen’s Charter services July 2025 | 204 |
| Citizen’s Charter services March 2026 | 200 |
| Solar capacity | 4,725 kWp |
| Office premises with green infrastructure | 29 |
| Residential premises | 63 |
28. High-Probability Questions
Q1. What is Utkarsh 2029?
RBI’s medium-term strategy framework covering April 2026 to March 2029.
Q2. What period did Utkarsh 2.0 cover?
January 2023 to December 2025.
Q3. Who chairs the Central Board?
The RBI Governor.
Q4. Which body is the second line of defence in RBI’s internal risk-management structure?
Risk Monitoring Department (RMD).
Q5. Which function represents the third line of defence?
Internal audit/Inspection Department.
Q6. What is ERM Framework 2.0?
RBI’s strengthened enterprise-wide risk-management framework, designed with greater emphasis on anticipation, analytics, risk culture and emerging risks.
Q7. How many Central Board meetings were held during FY 2025-26?
8.
Q8. How many CCB meetings were held?
46, including 34 e-meetings.
Q9. What is AMS?
Audit Management System, through which RBI’s audit processes were fully automated.
Q10. When did Next Gen-IRIS become operational?
April 1, 2026.
Q11. How many employees did RBI have as of December 31, 2025?
13,220.
Q12. How many employees were recruited in 2025?
247.
Q13. How many Vartalap town halls were conducted?
217, involving 11,035 employees.
Q14. How many RBI services were covered under the Citizen’s Charter after rationalisation?
200.
Q15. What was RBI’s solar capacity across the specified premises at end-March 2026?
4,725 kWp.
29. The Most Important Distinction: Utkarsh 2029 vs ERM 2.0
Do not mix these two.
Utkarsh 2029
Institution-wide medium-term strategy
Focus:
- Regulation
- Inclusion
- Financial markets
- Technology
- Internationalisation
- Future-ready organisation.
ERM Framework 2.0
Enterprise-wide risk-management framework
Focus:
- Risk identification
- Risk monitoring
- Emerging risks
- Analytics
- Risk culture
- Anticipatory risk management.
One-line memory:
Utkarsh tells RBI where it wants to go; ERM 2.0 helps RBI understand and manage the risks while getting there.
30. The Three Lines of Defence — Must Remember
This is a highly testable conceptual framework.
First Line
Business areas
They own and manage risks.
Second Line
Risk Monitoring Department
It provides independent risk oversight and monitoring.
Third Line
Inspection Department
It provides independent assurance through internal audit.
Memory Trick
Business → Risk → Audit
or:
Own → Monitor → Assure
31. What Does This Chapter Tell Us About RBI?
The Annual Report’s governance chapter reveals a significant institutional transformation.
RBI is becoming:
More technology-driven
Through:
- AMS
- AI/ML exploration
- Digital governance
- Data systems.
More risk-sensitive
Through:
- ERM 2.0
- Next Gen-IRIS
- Strengthened internal audit.
More strategically organised
Through:
- Utkarsh 2029
- Business continuity
- Skill-gap analysis.
More employee-focused
Through:
- MOOCs
- Capacity building
- VOICE
- Vartalap
- Well-being initiatives.
More service-oriented
Through:
- Citizen’s Charter
- Rationalised service timelines
- Monthly performance disclosure.
Key Takeaways
- Central Board is RBI’s apex governance body and is chaired by the Governor.
- The Central Board held 8 meetings during FY 2025-26.
- The Committee of the Central Board held 46 meetings, including 34 e-meetings.
- BFS and CCB are important Governor-headed bodies supporting RBI’s governance and supervision framework.
- HRMD focused on capacity building, skill development, employee engagement and well-being.
- RBI recruited 247 employees in 2025 and had 13,220 employees as of December 31, 2025.
- VOICE conducted 9 sessions with 181 participants, while Vartalap conducted 217 town halls involving 11,035 employees.
- ERM Framework 2.0 strengthened RBI’s enterprise-wide risk-management architecture.
- The internal risk structure can be remembered as Business areas → RMD → Inspection.
- Audit processes were fully automated through the Audit Management System (AMS).
- RBI explored the use of AI/ML in internal audit.
- Utkarsh 2029 covers April 2026–March 2029, following Utkarsh 2.0, which covered January 2023–December 2025.
- Utkarsh 2029 focuses on regulation, inclusion, financial markets, technology agility, internationalisation and organisational preparedness.
- RBI strengthened business continuity through an institutional SOP and crisis-response mechanisms.
- Citizen’s Charter services were rationalised from 204 to 200, with performance published monthly.
- RBI’s solar capacity across specified office and residential premises reached 4,725 kWp by end-March 2026.
- The broader message is clear: RBI’s institutional capacity is being built around people, technology, risk management, strategy and resilience.
One-Minute Revision
Central Board → Apex governance
Governor → Chairperson
CCB → Committee of Central Board
BFS → Financial supervision
HRMD → People + skills
RMD → Second line of defence
Inspection → Third line
AMS → Audit automation
ERM 2.0 → Enterprise-wide risk
Next Gen-IRIS → Operational Apr 1, 2026
Utkarsh 2.0 → Jan 2023–Dec 2025
Utkarsh 2029 → Apr 2026–Mar 2029
Utkarsh → 6 strategic pillars
Staff → 13,220
Recruitment 2025 → 247
VOICE → 9 / 181
Vartalap → 217 / 11,035
RTI applications → 31,995
Citizen’s Charter → 204 → 200
Solar capacity → 4,725 kWp
Final Exam Perspective
If you are preparing specifically for the RBI Grade B Promotion Exam, do not treat Chapter XI as a low-priority “administrative” chapter.
The most probable questions are likely to revolve around institutional relationships and numbers, especially:
Priority 1 — Must Know
- Utkarsh 2029
- Utkarsh 2.0 period
- Six strategic pillars
- ERM Framework 2.0
- Three lines of defence
- RMD vs Inspection Department
- Central Board / CCB / BFS
- AMS and internal-audit automation
Priority 2 — Very Important
- Staff strength
- Recruitment
- VOICE and Vartalap
- Citizen’s Charter
- Next Gen-IRIS
- Business continuity
Priority 3 — Factual Revision
- RTI applications/appeals
- Study leave
- PwBD and ex-servicemen
- Solar capacity
- Rajbhasha initiatives
- Training institutions.
The central idea to retain is:
RBI’s organisational strategy is shifting from conventional administration towards a technology-enabled, risk-sensitive, strategically managed and future-ready institution.
That is precisely what connects HR development + ERM 2.0 + internal audit + business continuity + Utkarsh 2029 into one coherent story.
Part 26 complete.