Confidence votes 71.9K. Reserve Bank of India was established on 1 st April 1935 through the Reserve Bank of India Act, 1934, when the British Ruled India. It is the central bank of India that governs the operations of all banks in the country.It was created to help reduce the economic troubles in India after the first world war.mperial Bank of India Reserve Bank of India was established on 1st April 1935 through the Reserve Bank of India Act, 1934, when the British Ruled India.