RBI: What the Reserve Bank of India Does for You
Independent guide. We are not part of RBI, NPCI or any bank, and we never ask for your account details, PIN or OTP.
RBI stands for Reserve Bank of India, the country's central bank. It sets the repo rate that moves your loan EMI, issues banknotes, and regulates banks, NBFCs and payment systems such as NEFT, RTGS and UPI. It doesn't open accounts for the public. To complain about a bank, use cms.rbi.org.in or call 14448.
- Full form
- Reserve Bank of India
- Set up
- 1 Apr 1935, under the RBI Act, 1934
- Owner
- Government of India (since 1949)
- Head office
- Mumbai (since 1937)
- Policy repo rate
- 5.50% (from 7 Oct 2026)
- Deposit insurance
- Up to ₹5 lakh per bank
- Complaints
- 14448 · cms.rbi.org.in
- Only official website
- rbi.org.in
What RBI does for you
Sets the repo rate
Its rate decisions flow through to the interest on your home, car and personal loans.
Issues banknotes
RBI has the sole right to issue banknotes. Coins and ₹1 notes come from the Government of India; RBI distributes them.
Regulates banks and NBFCs
It licenses and supervises them to protect depositors and keep banking safe.
Runs and regulates payments
RBI owns and operates NEFT and RTGS, and regulates other systems, including UPI and IMPS, run by NPCI.
Handles your complaints
Its free Ombudsman scheme, RB-IOS, settles disputes with banks, NBFCs and wallets.
Insures your deposits
Through its subsidiary DICGC, bank deposits are insured up to ₹5 lakh per depositor per bank.
RBI is also banker to the Central and State Governments, holds accounts of all scheduled banks, and manages foreign exchange under FEMA.
What RBI does not do
- It holds no accounts for individuals. You can't open a savings account with RBI, and it never keeps or sends funds to you.
- It doesn't guarantee company deposits. RBI accepts no responsibility for repayment of deposits taken by an NBFC, and NBFC deposits have no DICGC insurance.
- It doesn't regulate everything with money in it. Collective investment schemes come under SEBI, insurance companies under IRDAI, and chit funds and multi-level marketing under State Governments.
- It doesn't decide your loan rate directly. Your bank sets it, though many loans are linked to RBI's repo rate.
Repo rate and your EMI, simply explained
The repo rate is the interest rate at which RBI lends money to banks for short periods against government securities. A six-member Monetary Policy Committee (MPC) sets it, meeting at least four times a year, aiming to keep inflation near 4%.
| If the repo rate… | Floating-rate loans linked to it |
|---|---|
| Goes up | Interest and EMI usually rise at the next reset |
| Goes down | Interest and EMI usually fall at the next reset |
Ask your bank which benchmark your loan uses and when it resets. The latest repo rate is shown on the RBI home page under "Current Rates".
How money moves between banks through RBI
Every scheduled bank keeps an account with RBI. When you send money by NEFT or RTGS, RBI settles it by moving funds between the two banks' accounts in its books.
Read more: NEFT, RTGS, IFSC and the UTR reference number.
Is your money in a bank safe?
Bank deposits are insured by DICGC, a wholly owned subsidiary of RBI. If a bank fails, each depositor is covered up to ₹5 lakh, principal and interest together.
- All your accounts in one bank (savings, current, FD, RD, across branches) held in the same capacity are added up, and the total is covered up to ₹5 lakh.
- Accounts in different capacities, such as a joint account or one as guardian of a minor, are covered separately up to ₹5 lakh each.
- DICGC pays the liquidator within two months of receiving the claim list; the liquidator then pays you.
- Deposits with NBFCs are not insured.
How to spot a fake RBI call, email or website
- RBI never asks for your bank account details. Never share your account login, card details, PIN, OTP or password with anyone, not even someone claiming to be from a bank or RBI.
- No lottery, prize or foreign funds. Nobody from RBI calls about lottery winnings or money from abroad, and it never emails such offers. Asking you to pay a "processing fee" first is a scam.
- Only one website. RBI's only official website is rbi.org.in. Beware of look-alike sites with "RBI" or "Reserve Bank" in the address and fake logos.
- Fake KYC messages. A call or message threatening to block your account unless you click a link to update KYC is a common fraud. Contact your bank directly.
- Lost money? Call 1930 or report on cybercrime.gov.in at once, and tell your bank.
RBI runs a public-awareness campaign called RBI Kehta Hai (rbikehtahai.rbi.org.in). If a company is collecting deposits without authorisation, report it on RBI's Sachet portal (sachet.rbi.org.in).
How to complain to RBI about a bank
- Complain to the bank, NBFC or wallet company first, in writing, and keep the complaint number.
- If it doesn't reply within 30 days, or you're unhappy with the reply, file a free complaint under RB-IOS at cms.rbi.org.in.
- For help, call RBI's toll-free number 14448.
Full details: How to complain to the RBI Ombudsman (RB-IOS).
Torn or soiled notes? Any bank must exchange soiled notes for full value, even if you aren't its customer.
History of RBI
RBI is set up under the Reserve Bank of India Act, 1934, as a privately owned bank, with its central office in Kolkata.
The central office moves permanently to Mumbai.
RBI is nationalised and becomes fully owned by the Government of India.
RBI's RTGS system goes live.
RBI's NEFT system goes live.
The first Monetary Policy Committee is formed to set the repo rate, after the 2016 amendment to the RBI Act.
New floating-rate retail loans from banks must be linked to an external benchmark such as the repo rate.
RB-IOS 2026, RBI's current complaint scheme, comes into force.
FAQs
What is the full form of RBI?
Reserve Bank of India. It is India's central bank.
When was RBI established?
On 1 April 1935, under the Reserve Bank of India Act, 1934. It was nationalised in 1949.
Can I open an account with RBI?
No. RBI holds no accounts for individuals. It keeps accounts of governments and scheduled banks.
What is the current repo rate?
5.50%, set by the Monetary Policy Committee on 7 Oct 2026 (as on 31 Oct 2026). Check the RBI home page for the latest rate.
Does a repo rate change affect my existing home loan?
If it is a floating-rate loan linked to the repo rate, yes: your rate changes at the next reset, which must happen at least once every three months. Fixed-rate loans don't change.
Who issues ₹1 notes and coins?
The Government of India. RBI issues all other banknotes and puts the Government's coins into circulation.
Is my bank deposit guaranteed by RBI?
Bank deposits are insured by RBI's subsidiary DICGC up to ₹5 lakh per depositor per bank. NBFC deposits are not insured, and RBI does not guarantee them.
Someone called saying they are from RBI. What should I do?
Hang up. RBI never asks for your bank details and never offers lottery or foreign funds. Report any loss on 1930 or cybercrime.gov.in.
What is RBI's complaint helpline number?
14448, toll-free. File complaints online at cms.rbi.org.in.
Official sources
- RBI – About us: establishment, nationalisation, main functions (accessed 31 Oct 2026)
- RBI – Monetary Policy Committee resolution, 7 Oct 2026 (repo rate 5.50%) (accessed 31 Oct 2026)
- RBI – Monetary policy overview: MPC and repo rate (accessed 31 Oct 2026)
- RBI – External benchmark based lending, 4 Sep 2019 (accessed 31 Oct 2026)
- RBI – Indian Currency FAQs (accessed 31 Oct 2026)
- DICGC – Deposit insurance FAQs (accessed 31 Oct 2026)
- RBI – All you wanted to know about NBFCs (Sachet, RBI Kehta Hai) (accessed 31 Oct 2026)
- RBI – RBI cautions about fictitious emails (accessed 31 Oct 2026)
- RBI – Caution against fraudulent practices, 28 Jan 2022 (accessed 31 Oct 2026)
- RBI – Caution against frauds in the name of KYC updation, 2 Feb 2024 (accessed 31 Oct 2026)
- RBI – NEFT FAQs (accessed 31 Oct 2026)
- RBI – Complaint Management System (accessed 31 Oct 2026)
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