The RBI is the Central Banking Institution of the Indian Gov. which controls the monetary policy of the Indian Rupee. The full form of the RBI  is "Reserve Bank of India."
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RBI is the Reserve Bank of India.  It is the governmental institution since Independence, although it was started as a private institution.

It is a member of Asian clearing house.  That for clearing and exchange of international cheques and currencies etc.

RBI controls the monetary policies related to Rupee.  It is the central bank for the government of India.  It advises government and various nationalized bank on the assets, interest, loans and other matters.  It frames regulations that banks must follow. 
RBI monitors various public and private banks and financial institutions.

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