The Reserve Bank of India was set up on April 1, 1935.

Following India's independence on 15 August 1947, the RBI was nationalised on 1

January 1949.

Main Functions
Monetary Authority:
Formulates implements and monitors the monetary policy.
Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.

Regulator and supervisor of the financial system:

Prescribes broad parameters of banking operations within which the country's
banking and financial system functions.
Objective: maintain public confidence in the system, protect depositors' interest and
provide cost-effective banking services to the public.

Manager of Foreign Exchange

Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.

Issuer of currency:
Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and
coins and in good quality.

Developmental role: Performs a wide range of promotional functions to support

national objectives.

Related Functions:
Banker to the Government: performs merchant banking function for the central and
the state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.

Offices
RBI Has 19 regional offices, most of them in state capitals and 9 Sub-offices.
K. J. Udeshi is the first woman to become the deputy governor of RBI.
RBI was established on the recommendation of the Hilton Young Commission.
Manmohan Singh is the only Prime Minister to have also served as the Governor of
RBI.
Osborne Smith is the first governor of RBI.
The first Indian Governor of RBI was C.D. Deshmukh. He was the third governor of
RBI.
Dr. Raghuram Rajan is the current and 23rd Governor of the Reserve Bank of India.