The Reserve Bank of India

Abstract

The origin of the Reserve Bank of India (RBI) can be traced back to 1926, when the Royal Commission on Indian Currency and Finance - commonly referred to as the Hilton Young Commission - recommended the institution of a central bank to separate the control of currency and credit from the government and to increase banking facilities over the country. 73 The Reserve Bank of India, the central bank of India, is entrusted with monetary stability, the management of currency, and the supervision of the financial and payments system. The RBI bank also operates the credit systems and the currency and thus plays a critical role in the Indian economy. However, its functions have evolved in response to the country’s changing economic environment, and the increasingly globalized economy. At its origin, the RBI was a private institution before it was nationalized by The Banking Regulation Act of 1940. At first, the RBI headquarters were located in Kolkata, Bengal, but since 1937 its headquarters have been permanently moved to Mumbai, Maharashtra. Beside its headquarters, the RBI has 26 regional offices and branches in India.