It was established in 1960 by the Ministry of Education, engaged in teaching of Hindi as a foreign and second language.
The institute further has eight regional centers in Delhi, Hyderabad, Mysore, Shillong, Dimapur, Guwahati, Ahmedabad and Bhubaneswar.
The first chairman of this body was notable Indian independence activity and promoter of Hindi Moturi Satyanarayana.
Around 3612 foreign students from 71 countries have received diplomas under the scheme of Propagation of Hindi Abroad.
Institute strives to train 2700 in-service Hindi teachers through its 50 programmes every year.
Kendriya Hindi Sansthan has a digital language lab and audio recording studio.
Institute is producing various digital teaching and learning materials by making use of information and language technology.
The data collected is utilized in preparation of Hindi textbooks for second/other language learners .
Kendriya Hindi Sansthan has prepared these instructional materials for the State of Mizoram, Meghalaya, Nagaland and Sikkim.
Institute has also prepared Instructional Material for 5 tribal dialects (Kurukh, Halbi, Godi, Korku and Bheeli) of MP and Chhattisgarh keeping in view the problem of second language learners.
The library of the institute has one of the best collections of books on Hindi language, literature and learning.