The reserve Bank of India was established in 1935 under the reserve Bank of India Act 1934 as passed on the basis of the recommendations given by the Hilton Young Commission.The RBI commenced it's operations from 1st of April 1935 as a private shareholders bank . On 1st of January , it was nationalized by the Central Government of India.

Reserve Bank of India: The Apex Bank of India

The correct answer to the question is option A, which is the Reserve Bank of India (RBI). The RBI, established in 1935, is the central banking institution and the apex bank of India. It is responsible for the regulation and supervision of the country's banking and financial system.

Role and Functions of the Reserve Bank of India

The Reserve Bank of India plays a crucial role in the Indian economy by performing various functions. Some of the key functions of the RBI are:

1. Monetary Policy: The RBI formulates and implements monetary policies in India. It aims to maintain price stability, control inflation, and promote economic growth. The RBI controls the money supply, interest rates, and credit availability through various instruments such as repo rate, reverse repo rate, and open market operations.

2. Banker to the Government: The RBI acts as the banker, agent, and advisor to both the central and state governments. It manages their accounts, conducts government transactions, and manages public debt.

3. Banker's Bank and Lender of Last Resort: The RBI acts as a banker to other banks in India. It provides them with liquidity support, clears and settles interbank transactions, and regulates the banking system. In times of financial crisis, it acts as a lender of last resort by providing emergency liquidity assistance to banks.

4. Foreign Exchange Management: The RBI manages the country's foreign exchange reserves and formulates policies to stabilize and manage the exchange rate of the Indian rupee. It is responsible for maintaining the stability of the foreign exchange market.

5. Supervision and Regulation: The RBI supervises and regulates banks and financial institutions in India to ensure their soundness and stability. It issues guidelines and regulations regarding capital adequacy, risk management, and corporate governance for banks.

6. Financial Inclusion: The RBI promotes financial inclusion by implementing measures to increase access to banking and financial services for all sections of society. It aims to bring the unbanked population into the formal banking system.

7. Currency Management: The RBI is responsible for the issuance and management of currency in India. It ensures the availability of an adequate quantity of currency notes and coins in the economy.

Conclusion

The Reserve Bank of India, as the apex bank of India, plays a pivotal role in the Indian economy. It performs various functions, including monetary policy formulation, regulation and supervision of banks, foreign exchange management, and promoting financial inclusion. Being the central bank, the RBI is recognized as the Apex Bank of India.