The Reserve Bank of India (RBI) is the country's central bank. It began operating on 1 April 1935, was later nationalised and is wholly government owned. It is the monetary authority (setting the policy rate through its Monetary Policy Committee), the issuer of currency notes, the regulator of banks, banker to governments and banks, and manager of foreign exchange. The Governor heads it.
Key facts
- Established 1 April 1935; the Central Office was first set up in Kolkata and moved permanently in 1937.
- Functions: monetary authority, regulator and supervisor of the financial system, issuer of currency, banker to government, banker to banks, manager of foreign exchange.
- In May 2026 the RBI board approved a record surplus transfer of Rs 2,86,588 crore to the government for 2025-26. (as of 23 Oct 2026)
Why exams ask about it
The founding Act, the Hilton Young Commission, nationalisation year and the current policy rates are the usual questions.