Which institution is India’s central bank, established on 1 April 1935 under the Reserve Bank of India Act?

India’s central bank, established on 1 April 1935, is the Reserve Bank of India. It was created under the Reserve Bank of India Act 1934 to regulate currency and credit in the country. The bank began operations in Calcutta before moving its headquarters to Bombay, now Mumbai, in 1937.

The RBI was privately owned at first, but the Indian government nationalised it in 1949, after India became independent. Its responsibilities include monetary policy, bank supervision, foreign-exchange management, and issuing most Indian banknotes. The one-rupee note is issued by the Government of India rather than the RBI.

The RBI is also associated with India’s payment systems and financial stability. It should not be confused with the State Bank of India, which is a commercial bank and was created in its modern form in 1955. The RBI’s headquarters remain in Mumbai.