Changing Profile with Changing Times
The Reserve Bank of India is the central bank of the country. Most central banks, as we know them today, were established around the early twentieth century. The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

These are a few milestones on the road to what the RBI is today. For more detailed information on our history, please visit our dedicated history section at http://rbi.org.in/History/Index.html

1926
Birth of the Institution
Hilton Young Commission recommends setting up of the Reserve Bank of India

1935
The Reserve Bank of India starts functioning

1947
RBI goes National
India gains independence

1949
The Reserve Bank of India is nationalised

1950
Focus on Development
India embarks on planned economic development. RBI becomes an active agent and participant in this process

1951 - 1967
RBI engages in establishing an institutional infrastructure for agricultural and long-term individual credit

1970
Mass banking
RBI directs banks to take banking to masses by expanding their branch network and giving credit to the smallest borrower

1973
Rigorous framework of exchange controls legislated to prevent capital flight

1991
Initiating Major Fiscal & Financial Reforms
India faces unprecedented Balance of Payment crisis; devalues rupee and stabilises external sector, simultaneously launches reforms in fiscal, trade, foreign investment and financial sectors

1993-94
Adopts the international prudential norms and initiates a major effort to move away from micro to macro management of institutions

1997
Enters into an agreement with the government for fiscal discipline

2000
Legal framework to usher in convertibility on current account. Replacement of Foreign Exchange Regulation Act with Foreign Exchange Management Act

2001 - 2003
RBI continues its efforts at development of financial markets, strengthening of the financial sector with cutting edge technology

2004 - 2005
RBI puts in a modern payment and settlement system, strives to further strengthen the financial sector.

The Future
Dream about the institution you work for, dream about changes you could make to the Indian economy and strive to turn your dreams into reality