Economy, Currency and Banking

The Reserve Bank of India, founded in 1935 and nationalized in 1949, operates as India’s central bank and sole bank of issue. The rupee, India’s basic monetary unit, is divided into 100 paise (44.94 rupees equal U.S.$1; 2000 average). The central government’s Ministry of Finance and statutory bodies such as the Security and Exchange Board of India also help control the financial sector. The banking system is largely controlled by the government, although economic reforms have opened the banking industry to some private competition.

There are 23 stock exchanges in India. The largest is the Bombay Stock Exchange in Mumbai. Founded in 1875, the Bombay Stock Exchange is the oldest in Asia. Another major stock exchange is the National Stock Exchange, founded in 1994 in New Delhi.