RBI foundation day: Reserve Bank established on 1 April 1935
The Reserve Bank of India was established on 1 April 1935 under the Reserve Bank of India Act, 1934; 1 April 2026 marked its 91st foundation day.
Summary
The Reserve Bank of India (RBI) was established on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934, according to the RBI. Its Central Office, where the Governor sits and policies are formulated, was initially set up in Kolkata and moved permanently to Mumbai in 1937. Though originally privately owned, the RBI has been fully owned by the Government of India since its nationalisation in 1949. Its Preamble describes its basic functions as regulating the issue of bank notes and keeping reserves to secure monetary stability, and operating the currency and credit system of the country to its advantage.
Key facts
- Established
- 1 April 1935
- Law
- Reserve Bank of India Act, 1934
- Central Office
- Kolkata initially; moved to Mumbai in 1937
- Ownership
- Nationalised in 1949; fully owned by Government of India
- Core functions (Preamble)
- Note issue, reserves, monetary stability, currency and credit system
Practice MCQs 3 questions
On which date was the Reserve Bank of India established?
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Correct answer: A — 1 April 1935
The RBI says it was established on 1 April 1935 under the Reserve Bank of India Act, 1934.
Consider the following statements about the Reserve Bank of India: 1. Its Central Office was initially established in Kolkata and moved permanently to Mumbai in 1937. 2. It has been fully owned by the Government of India since its nationalisation in 1949. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct as per the RBI's 'About Us' page.
The Reserve Bank of India was established in accordance with the provisions of which Act?
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Correct answer: B — Reserve Bank of India Act, 1934
The RBI was established under the Reserve Bank of India Act, 1934.