The Reserve Bank of India (RBI) was established on April 1, 1935 in accordance with the provisions of the Indian Reserve Bank Act of 1934, which controls the monetary policy of the Indian rupee. The Reserve Bank of India plays an important role in the development strategy of the Indian government. It is a member bank of the Asian Clearing Union.
RBI is located in Mumbai and serves the financial market in many ways. One of its most important functions is to establish overnight interbank interest rates.