The Reserve Bank of India ( RBI) was established in the year 1935 in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank of India is the central Bank of India entrusted with the multidimensional role. It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country. Initially the Reserve Bank of India was a private share holder‟ s company which was nationalized in 1949. Its affairs are governed by the Central Board of Directors appointed by the Government of India. Since it s inception the Reserve Bank of India had played an important role in the economic development and monetary stability in the country. This paper is an attempt explore into the role, functions, and contribution of RBI in Indian Economy.