The set of central-banking roles performed by the Reserve Bank of India, established under the RBI Act, 1934, and nationalised in 1949, covering currency, monetary policy, banking regulation and external-sector management.
- The RBI began operations on 1 April 1935 under the RBI Act, 1934, and was nationalised on 1 January 1949; its headquarters is in Mumbai.
- It is the sole issuer of currency notes (except the one-rupee note and coins, issued by the Government of India) and follows the Minimum Reserve System for note issue (a minimum of 200 crore rupees in gold and foreign securities, of which 115 crore in gold).
- It is banker to the government, manages public debt and government securities, conducts concept monetary policy through the MPC, and regulates and supervises banks.
- It is the lender of last resort and the custodian of the country's foreign-exchange reserves, managing the external value of the rupee.
- It also has a developmental and promotional role, including concept financial inclusion and the credit needs of priority sectors.
The RBI's establishment (1935), nationalisation (1949), note-issue role and the standard list of functions are very high-frequency central-banking facts.
The RBI issues notes but not coins or the one-rupee note (the Government of India does); regulating banks and conducting monetary policy are both RBI functions but are distinct roles.
India's central bank (operational 1935, nationalised 1949): issues currency, runs monetary policy, regulates banks, manages government debt and forex, lender of last resort.