FinTax24

Glossary · Banking & Finance

RBI

Reserve Bank of India — the central bank of India, established under the RBI Act, 1934, responsible for regulating the issue and supply of the Indian rupee and the banking system.

The RBI is the apex monetary authority that issues currency, regulates banks, non-banking financial companies, and cooperative banks, manages foreign exchange, oversees payment and settlement systems, and administers the Foreign Exchange Management Act (FEMA). It frames monetary policy through the Monetary Policy Committee (MPC) to maintain price stability and adequate credit flow. The RBI Governor chairs the MPC and represents India at international forums like the Bank for International Settlements.

Examples

The RBI raises the repo rate by 25 basis points to 6.5% in August 2024 to control inflation, raising EMIs across home, personal, and car loans.
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