About the Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) is India's central bank. It formulates and implements monetary policy, issues and manages the nation's currency, regulates and supervises banks and select non-bank lenders, oversees payment systems, promotes financial inclusion, and works to preserve overall financial stability.

Quick Facts

Established: 1 April 1935
Legal Basis: Reserve Bank of India Act, 1934
Ownership: Government of India
Headquarters: Mumbai, India
Currency Managed: Indian Rupee (₹)

Key Functions

Monetary Policy

Formulates and implements monetary policy to achieve low and stable inflation.

Regulation & Supervision

Regulates and supervises banks and select non-bank financial institutions.

Currency Management

Issues, circulates, and withdraws banknotes; ensures availability of clean notes.

Payments & Settlements

Oversees payment systems (RTGS, NEFT, UPI) for safe and efficient transactions.

Financial Markets

Manages liquidity operations and foreign-exchange reserves.

Inclusion & Protection

Advances financial inclusion and protects customers via Ombudsman framework.

Frequently Asked Questions

What does the RBI do?

The RBI conducts monetary policy, regulates and supervises banks and select NBFCs, manages currency, oversees payment systems, safeguards financial stability, and advances financial inclusion and literacy.

How does RBI influence inflation?

Through its Monetary Policy Committee, the RBI uses the policy repo rate and liquidity operations to anchor inflation expectations and keep inflation within the target band while supporting growth.