Reserve Bank of India
India's central bank, responsible for monetary policy, currency, banking regulation and the government securities market.
How it is identified
Test: the matter concerns monetary policy, banking regulation, payment systems, foreign exchange or government debt management
Unit
qualitative
In depth
The Reserve Bank's remit is broader than a typical central bank's: alongside monetary policy it regulates banks and non-banking finance companies, manages the government's borrowing programme, administers foreign exchange rules and operates the payment system. Since 2016 monetary policy is set by a six-member committee against a consumer price inflation target of 4% with a two-point band, which removed the earlier discretion of the governor alone. The division of labour with SEBI matters: the Reserve Bank regulates banks and the money market, SEBI regulates securities markets, and the two overlap in areas such as government securities and corporate bonds.
Worked example
A bank's lending practices fall under the Reserve Bank; the same bank's listed shares and its disclosures to the exchange fall under SEBI. A complaint sent to the wrong regulator is redirected, but slowly.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Reserve Bank of India” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.