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. |||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.