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Economy & Banking

Reserve Bank of India (RBI)

Central bank of India, established 1 April 1935 under the Reserve Bank of India Act, 1934, and nationalised in 1949. Functions: monetary authority, regulator and supervisor of banks and NBFCs, manager of foreign exchange, issuer of currency, and developmental functions.

Why UPSC tests this

Highest-frequency Economics topic. Tested on monetary policy framework (MPC composition, inflation target band 4%±2%), instruments (repo, reverse repo, MSF, OMO), and recent regulatory developments.

Latest from PIB

8 on this page
  1. 30 Apr 2026Ministry of Finance

    RBI Organised Financial Literacy Camp for Migrant Workers on International Labour Day

    The Reserve Bank of India's Financial Inclusion Development Department in Panaji conducted a financial literacy camp for migrant workers on International Labour Day 2026. The initiative aimed to boost financial inclusion and safe banking, educating participants on various government schemes, digital transactions, and f…

  2. 26 Apr 2026Ministry of Corporate Affairs

    IICA concludes first assessment of Arbitrator Qualifying Assessment Program (AQAP), aims to create a cadre of world-class Arbitrators for Viksit Bharat

    The Indian Institute of Corporate Affairs (IICA) successfully completed the inaugural assessment cycle of its Arbitrator Qualifying Assessment Program (AQAP) in April 2026. This program, organized by the Centre of Excellence in Alternative Dispute Resolution (CEADR), aims to develop a cadre of world-class arbitrators,…

  3. 17 Apr 2026Reserve Bank of India

    Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2020-21 Series-VII due on April 20, 2026

    The Reserve Bank of India, on behalf of the Government, announced the redemption price for premature redemption of a specific Sovereign Gold Bond (SGB) series. The release highlighted key scheme mechanics: SGBs can be prematurely redeemed after five years from issuance on interest payment dates, with the redemption pri…

  4. 17 Apr 2026Ministry of Finance

    Reserve Bank of India conducts special MSME Workshop and Townhall meeting at Wardha

    The Reserve Bank of India (RBI) Nagpur conducted its fourth Vidarbha Specific Training for Empowering MSMEs (VSTEM) workshop in Wardha on April 17, 2026. This initiative aims to boost financial inclusion and MSME development by covering key government schemes, platforms like GeM, and credit literacy. The workshop highl…

  5. 16 Apr 2026Reserve Bank of India

    Launching of 114th Round of Quarterly Industrial Outlook Survey (IOS) – Q1:2026-27

    The Reserve Bank of India (RBI) conducts a 'Quarterly Industrial Outlook Survey (IOS)' focused on the Indian manufacturing sector. This survey aims to assess business sentiments by gathering qualitative responses on indicators such as demand, financial, employment, and price conditions, providing an outlook for current…

  6. 16 Apr 2026Reserve Bank of India

    Money Market Operations as on April 16, 2026

    The RBI's daily money market operations on April 16, 2026, reported the Marginal Standing Facility (MSF) rate at 5.50% and the Standing Deposit Facility (SDF) rate at 5.00%. These operations collectively led to a significant net absorption of liquidity by the RBI, indicating a surplus of liquidity in the banking system…

  7. 16 Apr 2026Reserve Bank of India

    Launching of 49th Round of Quarterly Services and Infrastructure Outlook Survey (SIOS) Q1:2026-27

    The Reserve Bank of India (RBI) conducts a quarterly 'Services and Infrastructure Outlook Survey (SIOS)' to assess the current business situation and future expectations of companies in India's services and infrastructure sectors. This survey gathers qualitative responses on indicators like demand, financial conditions…

  8. 15 Apr 2026Reserve Bank of India

    Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s 1988 (2011) Taliban Sanctions List: Amendment of 04 Entries

    The Reserve Bank of India (RBI) mandates all regulated financial entities in India to comply with Section 51A of the Unlawful Activities (Prevention) Act (UAPA), 1967. This requires them to implement an assets freeze on individuals and entities designated by the UN Security Council (UNSC) on its various sanctions lists…

Past UPSC Prelims questions on this

  1. UPSC Prelims 2025geography

    Consider the following statements : I. Without the atmosphere, temperature would be well below freezing point everywhere on the Earth's surface. II. Heat absorbed and trapped by the atmosphere maintains our planet's average temperature. III. Atmosphere's gases, like carbon dioxide, are particularly good at absorbing and trapping radiation. Which of the statements given above are correct?

    Practice more on climatology
  2. UPSC Prelims 2025polity

    Consider the following countries : I. Austria II. Bulgaria III. Croatia IV. Serbia V. Sweden VI. North Macedonia How many of the above are members of the North Atlantic Treaty Organization?

    Practice more on polity international relations
  3. UPSC Prelims 2025economics

    Consider the following statements : I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?

    Practice more on economic planning
  4. UPSC Prelims 2025economics

    Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

    Practice more on money and banking
  5. UPSC Prelims 2025science-and-tech

    Consider the following statements : Statement I : Activated carbon is a good and an attractive tool to remove pollutants from effluent streams and to remediate contaminants from various industries. Statement II : Activated carbon exhibits a large surface area and a strong potential for adsorbing heavy metals. Statement III : Activated carbon can be easily synthesized from environmental wastes with high carbon content. Which one of the following is correct in respect of the above statements?

    Practice more on basic science

Frequently asked

What is the composition of the Monetary Policy Committee?
Six members — three from the RBI (Governor as ex-officio Chair, Deputy Governor in charge of monetary policy, and one officer nominated by the Central Board) and three external members appointed by the Government of India for a four-year term.
What is RBI's inflation target?
4% Consumer Price Index (CPI) inflation, with a tolerance band of +/-2% (i.e., 2% to 6%), set by the Government in consultation with RBI under the Monetary Policy Framework Agreement.
When was RBI nationalised?
1 January 1949, under the Reserve Bank (Transfer to Public Ownership) Act, 1948.

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Last updated 9 May 2026.