[16] The original choice for the seal of RBI was the East India Company Double Mohur, with the sketch of the Lion and Palm Tree.

The Preamble of the RBI describes its basic functions to regulate the issue of banknotes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country.

In the 1950s, the Indian government, under its first Prime Minister Jawaharlal Nehru, developed a centrally planned economic policy that focused on the agricultural sector.

[40] The court challenge was filed by the Internet and Mobile Association of India, whose members include some cryptocurrency exchanges whose businesses suffered following the RBI's 2018 order.

Other persons forming part of the central board of directors of the RBI are Revathi Iyer, Sachin Chaturvedi, Satish Kashinath Marathe, Swaminathan Gurumurthy, Anand Gopal Mahindra, Venu Srinivasan, Pankaj Ramanbhai Patel, Ravindra H. Dholakia, Ajay Seth, and Vivek Joshi.

Nanda S. Dave, Anil K. Sharma, S. C. Murmu, T. Rabi Sankar, Janak Raj, P Vijayakumar, Indrani Banerjee, O.P.

[47] Sudha Balakrishnan, a former vice-president at National Securities Depository Limited, assumed charge as the first chief financial officer (CFO) of the Reserve Bank on 15 May 2018; she was given the rank of an executive director.

It has four members, appointed for two years, and takes measures to strength the role of statutory auditors in the financial sector, external monitoring, and internal controlling systems.

On 8 December 2017, Surekha Marandi, executive director (ED) of Reserve Bank of India, said RBI will open an office in the north-eastern state of Arunachal Pradesh.

It has been set up by RBI to serve its information technology and cybersecurity needs and to improve the cyber resilience of the Indian banking industry.

It manages and operates the Financial messaging platform (SFMS) that comprises Real-Time Gross Settlement and National Electronic Funds Transfer.

RBIH meant to create an ecosystem that focuses on promoting access to financial services and products for the low-income groups in India.

RBIH is to help in convergence among various stakeholders from BFSI sector, start-up ecosystem, regulators and academia in the financial innovation space.

The purposes for which the RBI has been established as India’s central bank has been spelt out in the preamble to the RBI Act: [66]i) "to regulate the issue of banknotes and the 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; and (ii) that it is essential to have a modern monetary policy framework to meet the challenge of an increasingly complex economy and the primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth" ...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.The primary objective of RBI is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions, and non-banking finance companies.

The RBI controls the monetary supply, monitors economic indicators like the gross domestic product and has to decide the design of the rupee banknotes as well as coins.

[67] RBI uses methods like on-site inspections, off-site surveillance, scrutiny and periodic meetings to supervise new bank licences, setting capital requirements and regulating interest rates in specific areas.

Their objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

[80] On 22 January 2014; RBI gave a press release stating that after 31 March 2014, it will completely withdraw from circulation of all banknotes issued prior to 2005.

[82] Key tools in this effort include Priority Sector Lending such as agriculture, micro and small enterprises (MSE), housing and education.

[83][84] The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.

[92][93] International airports were also instructed to facilitate an exchange of notes amounting to a total value of ₹5,000 (US$58) for foreign tourists and outbound passengers.

[94] Under the revised guidelines issued on 17 November 2016, families were allowed to withdraw ₹250,000 (US$2,900) for wedding expenses from one account provided it was KYC compliant.

Generally, the RBI uses: Direct credit controls in India are of three types: The share of net demand and time liabilities that banks must maintain in safe and liquid assets, such as government securities, cash, and gold.

On 23 March 2020, Reserve Bank of India infused ₹1 trillion (short scale) through term repo auction, a massive OMOs (open market operations) purchase of government securities.

The Reserve Bank is monitoring the financial market conditions and liquidity situation in the economy as COVID-19 pandemic in India fears of a recession.

Under this measure, the RBI can specifically instruct banks not to give loans to traders of certain commodities e.g. sugar, edible oil, etc.

[citation needed] Under this measure, the RBI try to persuade banks through meetings, conferences, media specific things under certain economic trends.

In developing countries like India, monetary policy fails to show immediate or no results because the following factors: RBI decided to remove charges on RTGS (Real Time Gross Settlement System) and NEFT (National Electronic Funds Transfer).

[117] In November, RBI introduced a set of draft guidelines to regulate the variable pay of CEOs and top management at private banks.

[120] In August 2020, RBI set up a five membered Committee under the chairmanship of KV Kamath, the former CEO of the ICICI bank in order to make recommendations on the norm for resolution of COVID-19 related stressed loans.