Reserve Bank of India

About Reserve Bank of India

Established on April 1, 1935, under the Reserve Bank of India Act of 1934. The RBI was privately owned until nationalized in 1949. The RBI issued the Indian rupee and managed Britains debts to India before independence. After 1947, the RBI became the central bank of independent India. The RBI manages monetary policy, supervises banks, controls foreign exchange, and issues currency. The bank was led by notable governors including C D Deshmukh, Manmohan Singh before he became Prime Minister, and Raghuram Rajan from 2013 to 2016. Rajan, a University of Chicago professor, was credited with stabilizing the rupee and controlling inflation. The RBI targets 4 percent inflation with a 2 percent band.