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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

  1. reference

    Reserve Bank of India established

    Created under the RBI Act, 1934; began operations on 1 April 1935.

  2. reference

    RBI nationalised

    Brought fully under government ownership after independence.

  3. reference

    Monetary Policy Committee framework adopted

    A flexible inflation-targeting regime with a 4% (±2%) CPI target and a rate-setting committee.

  4. gdelt

    Policy repo rate held unchanged

    The MPC left the policy rate steady while projecting continued GDP growth and watching the inflation outlook.

    source 1

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.

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