The Reserve Bank of India was established on April 1, 1935 under Reserve Bank of India Act, 1934. The RBI was nationalized in the year 1949. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. The Central Office is where the RBI Governor sits and formulates monetary policies for the nation. The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as “to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”

Author:
Dr. Amit Bhaskar, Associate Professor, Unitedworld School of Law (UWSL)

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