The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.

Preamble

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:

"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

Central Board

The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

Appointed / nominated for a period of four years
 
Constitution:

• Official Directors
  Full-time : Governor and not more than four Deputy Governors
  
  
• Non-Official Directors
  Nominated by Government: ten Directors from various fields and one government Official 
  Others: four Directors - one each from four local boards

Functions : General superintendence and direction of the Bank's affairs

Local Boards

• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi
• Membership:
• consist of five members each
• appointed by the Central Government
• for a term of four years

Functions

To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.