Role of RBI in Development of India Economy
DOI:
https://doi.org/10.69968/ijisem.2026v5i3494-499Keywords:
Reserve Bank of India, Monetary Policy, Financial Inclusion, Economic Development, Banking RegulationAbstract
The Reserve Bank of India (RBI), established in 1935 and nationalized in 1949, serves as the central banking authority responsible for maintaining monetary and financial stability in India. This review paper is exploratory in nature, based on secondary data drawn from RBI publications, government reports, research papers, and academic journals. It examines the organizational structure of RBI, its major functions—including currency issuance, banking regulation, credit control, foreign exchange management, and acting as banker to the government—and its broader role in India's economic development. The study also reviews key initiatives undertaken by RBI, such as promoting financial inclusion, digital payments, priority sector lending, MSME finance, and banking sector reforms. Findings indicate that RBI has been instrumental in maintaining price stability, strengthening the banking system, supporting international trade, and fostering inclusive and sustainable economic growth across India, particularly through its adaptive and responsive regulatory approach in recent years.
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