About

Established on April 1, 1935, under the Reserve Bank of India Act, the RBI acts as a banker to the government and the banking sector, and plays a crucial role in maintaining financial stability in the country. The primary objectives of the RBI are to manage monetary policy, control inflation, stabilize interest rates, and promote economic development. It formulates and implements various monetary policies to regulate liquidity and ensure price stability. The RBI also supervises and regulates commercial banks, non-banking financial companies, cooperative banks, and other financial institutions to maintain the stability of the banking system and protect the interests of depositors. As the sole authority for issuing currency, the RBI designs and prints banknotes and coins, oversees their circulation, and ensures currency supply meets the demands of the economy. It also manages the country's foreign exchange reserves and plays a crucial role in maintaining exchange rate stability. The RBI serves as the banker to the government, managing the government's bank accounts and conducting transactions on its behalf. It also acts as a lender of last resort, providing financial assistance to banks facing liquidity challenges to maintain stability in the financial system. The central bank promotes financial inclusion and develops a robust payment and settlement infrastructure to facilitate efficient and secure transactions. It also conducts research and analysis to support policy decision-making and plays an important role in disseminating financial and economic information. Over the years, the RBI has evolved and adapted to the changing needs of the Indian economy. It has played a vital role in sustaining economic growth, ensuring financial stability, and safeguarding the interests of various stakeholders. As an autonomous institution, the RBI operates with a high degree of independence to fulfill its mandate. Overall, the Reserve Bank of India is a key institution in India's economy, responsible for maintaining financial stability, managing monetary policy, regulating the banking sector, and promoting economic development.