The correct answer is the Reserve Bank of India. Reserve Bank of India is the apex banking institution of India that regulates the monetary policy. The Reserve Bank Of India is the apex banking institution. It has a basic function œto 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.  It commenced operations on April 1, 1935, is at the centre of Indias financial system. Hence it is called the Central Bank. It has a fundamental commitment to maintaining the nations monetary and financial stability. It started as a private share-holders bank “ but was nationalized in 1949, under the Reserve Bank (Transfer of Public Ownership) Act, 1948. It is a banker to the Central Government, State Governments and Banks. Important PointsKey functions of RBI Include: Monetary policy. Supervision of Banking companies, Non-banking Finance Companies and Financial Sector, Primary Dealers and Credit Information Bureaus. Regulation of money market, government securities market, foreign exchange market, and derivatives linked to these markets. Management of foreign currency reserves of the country and its current and capital account. Issue and management of currency. Oversight of payment and settlement systems. Development of the banking sector. Research and statistics. finance companies are regulated by RBI.