The Central Bank is an ‘Apex’ body that controls, operates, regulates, and directs the entire banking and monetary structure of the country.
It is the supreme body as it occupies the topmost position in the monetary and banking system of the country.
It is the sole agency of note issuing and controls the supply of money in the economy. It serves as a banker to the government and manages the forex (foreign exchange) reserves of the country.
All financially developed countries have their own Central Bank.
India’s Central Bank is known as the Reserve Bank of India (RBI).
RBI was established on April 1, 1935, under the Reserve Bank of India Act passed in 1934.