The Reserve Bank of India (RBI) is India's central banking and monetary authority. RBI regulates loans offered by banks and non-banking financial institutions to government entities, businesses, and consumers and controls the availability of funds in the financial system for credit.
RBI sets the direction for interest rates and price stability and conducts fund raising activities for the central and the state governments through the auction of government securities. Reserve Bank is also responsible for monitoring the foreign exchange flows into the Indian economy, managing currency exchange rates and supervising how banks and non-banking financal institutions function.
RBI was originally privately owned but is now owned wholly by the Indian government. Set up on April 1, 1935 under the Reserve Bank of India Act, RBI’s central office was initially in Kolkata but moved to Mumbai in 1937.