The Reserve bank of India (RBI) was established in April 1, 1935, with a Share Capital of Rs 5 crore. In 1949, it was nationalized and it became the central bank of India. It issues notes, buys and sells government securities, regulates the volume, direction and cost of credit, manages foreign exchanges, financing institutions, agriculture and industries. Being the apex bank, it acts as the banker to other banks. All scheduled banks have to keep a certain percentage of their time and demand liabilities with the Reserve bank. The Scheduled banks have also to submit weekly returns of their business to the reserve bank.