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The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 which controls the monetary policy of the Indian rupee. The RBI plays an important part in the Development Strategy of the Government of India. It is a member bank of the Asian Clearing Union . Located in Mumbai, the RBI serves the financial market in many ways. One of its most important functions is establishing an overnight interbank lending rate.