Institution
Reserve Bank of India
The Reserve Bank of India is India's central bank and monetary authority. It sets the policy interest rate through its Monetary Policy Committee, regulates and supervises banks, manages the currency and foreign-exchange reserves, and acts as banker to the government. Established in 1935 and headquartered in Mumbai, it is the institution that steers the price of money in India.
Updated
- Established
- 1 April 1935
- Nationalised
- 1949
- Headquarters
- Mumbai
- Mandate
- 4% CPI inflation (±2%)
Role
The RBI is the apex of India’s monetary and banking system. Its Monetary Policy Committee sets the repo rate against a flexible inflation-targeting mandate (4% CPI, ±2%), balancing price stability against growth. Beyond monetary policy it regulates banks and much of the wider financial system, manages the rupee and the country’s foreign-exchange reserves, and serves as banker and debt manager to the Government of India.
Desk maintained by IndiaStand editorial cycles. Officeholders are transient; this dossier tracks the institution.
Timeline since 1947
- reference
Reserve Bank of India established
Created under the RBI Act, 1934; began operations on 1 April 1935.
- reference
RBI nationalised
Brought fully under government ownership after independence.
- reference
Monetary Policy Framework Agreement signed with the Government
The Reserve Bank and the Ministry of Finance signed an agreement committing the Bank to bring CPI inflation below 6% by January 2016 and to hold it at 4% (+/- 2%) thereafter, the contractual step that preceded the statutory inflation-targeting regime. The agreement was published by the Department of Economic Affairs.
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Monetary Policy Committee framework adopted
A flexible inflation-targeting regime with a 4% (±2%) CPI target and a rate-setting committee.
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First Monetary Policy Committee resolution cuts the repo rate to 6.25%
In the first rate decision taken by the newly constituted MPC rather than by the Governor alone, the committee reduced the policy repo rate under the LAF by 25 basis points from 6.5% to 6.25%, with the reverse repo at 5.75% and MSF and Bank Rate at 6.75%. The resolution framed the decision against a 5% CPI objective for Q4 2016-17 and the medium-term target of 4% within a band of +/- 2%.
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Rupee 2000 banknote introduced under Section 24(1) of the RBI Act
The Reserve Bank issued a new Rupee 2000 denomination banknote under Section 24(1) of the RBI Act, 1934, to remonetise the economy quickly after the withdrawal of legal tender status from all Rupee 500 and Rupee 1000 banknotes then in circulation. The Bank later recorded that the objective lapsed once other denominations were available in adequate quantities.
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Banking Regulation (Amendment) Ordinance gives RBI power to direct insolvency referrals
Following the promulgation of the Banking Regulation (Amendment) Ordinance, 2017, the Reserve Bank announced on 22 May 2017 that it would constitute a committee drawn largely from its independent Board members to advise on which stressed accounts should be referred for resolution under the Insolvency and Bankruptcy Code, 2016. The Ordinance converted the Bank from a prudential supervisor into a direct trigger of insolvency proceedings.
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RBI refers 12 large defaulters to the Insolvency and Bankruptcy Code
The Internal Advisory Committee set a non-discretionary criterion: all accounts with fund and non-fund based exposure above Rupees 5000 crore, of which 60% or more was classified non-performing as of 31 March 2016. Twelve accounts, together about 25% of the banking system gross NPAs, qualified for immediate reference to the NCLT, with other stressed accounts to be resolved within six months or filed for insolvency.
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Rupee 2000 notes in circulation peak, then printing is stopped
The value of Rupee 2000 banknotes in circulation peaked at Rupees 6.73 lakh crore on 31 March 2018, equal to 37.3% of all notes in circulation; printing of the denomination was stopped in 2018-19. About 89% of the notes had been issued before March 2017.
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Central Board adopts Jalan economic capital framework, transfers Rupees 1.76 lakh crore
The Central Board accepted the recommendations of the Expert Committee to Review the Extant Economic Capital Framework and approved a transfer of Rupees 1,76,051 crore to the Government: Rupees 1,23,414 crore of surplus for 2018-19 plus Rupees 52,637 crore of excess provisions released under the revised framework. The episode settled a contested question about how much capital the central bank must retain.
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COVID-19 package: targeted long-term repos of up to Rupees 1,00,000 crore
Alongside the MPC resolution, the Bank issued a Statement on Developmental and Regulatory Policies to counter pandemic dislocation: auctions of targeted long-term repo operations of up to three years tenor totalling up to Rupees 1,00,000 crore at a floating rate linked to the repo, with proceeds to be deployed in investment-grade corporate bonds, commercial paper and non-convertible debentures, plus measures easing repayment pressure and working-capital access.
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Rupee 2000 banknotes withdrawn from circulation under the Clean Note Policy
The Bank withdrew the Rupee 2000 denomination from circulation while keeping it legal tender, after its value in circulation fell from Rupees 6.73 lakh crore in March 2018 to Rupees 3.62 lakh crore, or 10.8% of notes in circulation, by 31 March 2023. Deposits were unrestricted and exchange was capped at Rupees 20,000 at a time from 23 May 2023.
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Central Board approves record surplus transfer of Rupees 2.69 lakh crore for 2024-25
Press reporting of the Central Board meeting stated a surplus transfer of about Rupees 2.69 lakh crore to the Government for 2024-25, the largest on record, with the contingent risk buffer raised to 7.5% under the economic capital framework. The figure is reported at news tier and not confirmed here against the Bank's own release.
- gdelt
Policy repo rate held unchanged
The MPC left the policy rate steady while projecting continued GDP growth and watching the inflation outlook.
Frequently asked
- What is Reserve Bank of India?
- The Reserve Bank of India is India's central bank and monetary authority. It sets the policy interest rate through its Monetary Policy Committee, regulates and supervises banks, manages the currency and foreign-exchange reserves, and acts as banker to the government. Established in 1935 and headquartered in Mumbai, it is the institution that steers the price of money in India.
- When was Reserve Bank of India established?
- Reserve Bank of India was established 1 April 1935.
- What does Reserve Bank of India do?
- Its remit covers Monetary policy and the repo rate (via the Monetary Policy Committee), Banking regulation and supervision, Currency issuance and management, Foreign-exchange reserves and the rupee, Banker and debt manager to the government.
- What is the latest on Reserve Bank of India?
- As of 2026-07-02: Policy repo rate held unchanged. The MPC left the policy rate steady while projecting continued GDP growth and watching the inflation outlook.
Official sources
The government's own pages for this institution — go straight to the primary.
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Canonical home of the central bank; hub for policy, regulation, notifications and publications.
www.rbi.org.in/
- Annual Report reports
Statutory annual report archive covering the Bank's accounts, economy review and working.
rbi.org.in/Scripts/AnnualReportMainDisplay.aspx
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RBI's data warehouse (run by DSIM) with real sector, financial, external sector and public finance series.
data.rbi.org.in/DBIE/
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Scheduled statistical releases: weekly statistical supplement, money supply, forex reserves, bulletin tables.
rbi.org.in/Scripts/Statistics.aspx
- Press Releases press
RBI's own press-release archive, including monetary policy statements and enforcement actions.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx
- Master Circulars reports
Consolidated, annually refreshed regulatory instructions to regulated entities.
www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx
- Reserve Bank of India Act, 1934 (India Code) legislation
Constituting Act with rules, regulations and notifications; source of MPC and CRR provisions.
www.indiacode.nic.in/handle/123456789/2398?view_type=browse&
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Wholly-owned RBI subsidiary that insures bank deposits; maintains its own site and claim data.
www.dicgc.org.in/
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