The correct answer is option 1: Reserve Bank of India.

The Reserve Bank of India (RBI) is the central banking institution in India and is responsible for the regulation and supervision of the banking sector. It was established in 1935 under the Reserve Bank of India Act. The RBI acts as the banker to the government and manages the country`s monetary policy.

Option 2, Union Finance Commission, is incorrect. The Union Finance Commission is a constitutional body that is responsible for making recommendations on the distribution of financial resources between the central government and the state governments.

Option 3, Union Ministry of Finance, is incorrect. While the Union Ministry of Finance plays a significant role in financial matters, it does not directly control the banking sector. The RBI is an autonomous body and operates independently of the Ministry of Finance.

Option 4, Union Ministry of Commerce, is incorrect. The Union Ministry of Commerce is primarily responsible for promoting India`s exports and imports and does not have direct control over banking operations in the country.

Therefore, the correct answer is option 1: Reserve Bank of India.