Reserve Bank Of India - RBI

AAA

DEFINITION of 'Reserve Bank Of India - RBI'

The central bank of India, which was established on April 1, 1935, under the Reserve Bank of India Act. The RBI uses monetary policy to create financial stability in India and is charged with regulating the country's currency and credit systems.

INVESTOPEDIA EXPLAINS 'Reserve Bank Of India - RBI'

Located in Mumbai, the Reserve Bank of India serves the financial market in many ways. One of its most important functions is establishing an overnight interbank lending rate. The Mumbai Interbank Offer Rate, or MIBOR, serves as a benchmark for interest rate related financial instruments in India.

RELATED TERMS
  1. Overnight Rate

    The interest rate at which a depository institution lends immediately ...
  2. Collateralized Borrowing And Lending ...

    A money market instrument that represents an obligation between ...
  3. India ETF

    An exchange-traded fund that is based on a basket of securities ...
  4. Central Bank

    The entity responsible for overseeing the monetary system for ...
  5. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  6. Interbank Rate

    The rate of interest charged on short-term loans made between ...
Related Articles
  1. How The U.S. Government Formulates Monetary ...
    Personal Finance

    How The U.S. Government Formulates Monetary ...

  2. An Introduction To The Indian Stock ...
    Fundamental Analysis

    An Introduction To The Indian Stock ...

  3. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  4. The Currency Board: Understanding The ...
    Personal Finance

    The Currency Board: Understanding The ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center