Abstract

The Reserve Bank of India ( RBI) was established in the year 1935 in accordance with the Reserve Bank of India Act, 1934.  The  Reserve Bank  of India  is the central Bank of India entrusted with the multidimensional role. It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country. Initially the Reserve Bank of  India  was  a private share holder‟ s company which was nationalized in 1949. Its affairs are governed by the Central Board of Directors appointed  by the  Government  of India.  Since  it s inception the  Reserve Bank of  India had  played an  important role in the economic development  and  monetary stability in the country. This paper is an attempt explore into the role, functions, and contribution of RBI in Indian Economy.