India's Major Economic Institutions — RBI, SEBI, NITI Aayog
Most questions in Patwari's GK-India section under the "Economic News" tag are grounded in the establishment and role of just a few institutions — RBI, SEBI, and NITI Aayog. They are given here together in one table.
- GK-India · Economic News
- 6 min read
From the Planning Commission to NITI Aayog
The Reserve Bank of India (RBI) is the country's central bank, established on 1 April 1935 under the Reserve Bank of India Act, 1934 — it was initially a privately-owned institution, which was nationalised in 1949.
The Securities and Exchange Board of India (SEBI) was set up in 1988, but it received actual statutory powers in 1992 under the SEBI Act — it is the regulator of the stock market and investor protection. The Planning Commission (1950–2014) was replaced on 1 January 2015 by NITI Aayog (National Institution for Transforming India), a policy-making think tank that does not have the fund-allocation power the Planning Commission had.
Three Major Institutions at a Glance
| Institution | Established | Headquarters | Main Function |
|---|---|---|---|
| Reserve Bank of India (RBI) | 1 April 1935 (nationalised 1949) | Mumbai | Central bank — issuing currency, monetary policy, regulating banks |
| SEBI | 1988 (statutory powers from 1992) | Mumbai | Regulating the stock market and investors |
| NITI Aayog | 1 January 2015 (replaced the Planning Commission) | New Delhi | Policy-making think tank; Chairperson: the Prime Minister |
Keep the Difference Clear
The Planning Commission had the power to allocate funds to states through Five-Year Plans; NITI Aayog has no such financial power — it is only a think tank that suggests policy and promotes cooperative federalism. This difference is asked directly in the exam.
Frequently Asked Questions
When was RBI established?+
On 1 April 1935 under the Reserve Bank of India Act, 1934; it was nationalised in 1949.
When was NITI Aayog established and what did it replace?+
On 1 January 2015, replacing the Planning Commission (established 1950); its Chairperson is the Prime Minister.
When did SEBI get statutory powers?+
In 1992, after the SEBI Act, 1992 was passed — before that, from 1988, it was a non-statutory body.
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