The Reserve Bank of India (RBI) established a Chair in applied research in regional economics in the Institute in 1985 initially for five years.

In 1991, the RBI extended its support to this unit on a continuing basis subject to periodic review. In 2002, the RBI converted its annual commitment to an endowment giving the Institute full autonomy to the unit.

The RBI Chair Professor provides input on sector-specific topics as suggested by the Reserve Bank from time to time. The RBI unit at MIDS organises short training courses and capacity-building programmes on macroeconomics, monetary economics, development economics, public policy, project evaluation, climate change finance, Green GDP, etc.