Reserve Bank of India on 8 November 2016. Earlier 1000 notes have been discarded by RBI. Reserve Bank of India also works as a central bank where commercial banks are account holders and can deposit money. RBI maintains banking accounts of all scheduled banks. Commercial banks create credit. It is the duty of the RBI to control the credit through the CRR, bank rate and open market operations. As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps the inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lender of the
Reserve Bank of India, South Zonal Office Bank of India Act, 1934 (II of 1934). The bank began its operations by taking over from the government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of government accounts and public debt. The Central Office of the Reserve Bank, where the governor sits and where policies are formulated, was initially established in Calcutta but was permanently moved to Mumbai in 1937. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were