RBI is the central bank of India. The origins of the Reserve Bank of India can be traced to 1926, when the Royal Commission on Indian Currency and Finance – also known as the Hilton-Young Commission – recommended the creation of a central bank for India to separate the control of currency and credit from the Government.

The functions of the Reserve Bank today can be categorized as follows:

•   Monetary policy

•   Regulation and supervision of the banking and non-banking financial institutions, including credit information companies.

•   Regulation of money, forex and government securities markets as also certain financial derivatives

•   Debt and cash management for Central and State Governments

•   Management of foreign exchange reserves

•   Foreign exchange management—current and capital account management

•   Banker to banks

•   Banker to the Central and State Governments

•   Oversight of the payment and settlement systems

•   Currency management

•   Developmental role

•   Research and statistics

•   All the activities mentioned in 4 options are regulated by RBI.