Which Indian institution is known as the country's central bank?

The Reserve Bank of India is India's central bank.

The RBI began operations on 1 April 1935 under the Reserve Bank of India Act, 1934. Its central office was initially in Kolkata and moved permanently to Mumbai in 1937. The institution was privately owned at first and was nationalized in 1949.

The RBI formulates monetary policy, regulates and supervises much of the banking and financial system, manages foreign-exchange reserves, issues most Indian banknotes, and serves as banker to the government. The one-rupee note is issued by the Government of India rather than the RBI.

The State Bank of India is a major commercial bank, but it is not the country’s central bank. That distinction is a common source of confusion because both institutions have “bank” in their names and operate throughout India.