The Sansthan was established in 15th October, 1970 as an autonomous organisation registered under the Societies Registration Act, 1860 (Act XXI of 1860) for the development and promotion of Sanskrit all over the country. It is fully funded by Government of India. It functions as an apex body for propagation and development of Sanskrit and assists the Ministry of Human Resource Development in formulating and implementing various plans and schemes for the development of Sanskrit studies. It has assumed the role of a nodal body for the effective implementation of various recommendations made by the Sanskrit Commission set up by the Government of India, Ministry of Education in 1956 to consider the propagation and development of Sanskrit language and education in all its aspects.
The Sansthan has entered into its new building on the auspicious occasion of the Sanskrit Day on 28th August 1996. This building is equipped with more facilities like Library, Computer Centre, Modern Conference Room, Committee Room, Guest Room, Sales counter, Canteen etc. With the added facilities and support from the Ministry of Human Resource Development, Government of India, the Sansthan expects to serve the cause of Sanskrit during the coming years in a more effective way by bringing out the wealth of knowledge contained in Sanskrit Literature for the welfare of human beings and coordinating the Sanskrit studies and researches being undertaken by various institutions in the different parts of the world.
Sanskrit has played a vital role in the development of all Indian languages and in the preservation of the cultural heritage of India. No Indian language can flourish without the help of Sanskrit. Sanskrit also provides the theoretical foundation of ancient sciences. Hence, it becomes essential to preserve and propagate Sanskrit for all-round development of India. Fully conscious of this responsibility, the Govt. of India, in pursuance of the recommendations of the Sanskrit Commission (1956-57) constituted a Central Sanskrit Board, which recommended the establishment of a Rashtriya Sanskrit Sansthan. Accordingly, the Rashtriya Sanskrit Sansthan was established in October 1970 as an autonomous organisation registered under the Societies Registration Act, 1860 for the development, preservation and promotion of Sanskrit learning all over the country and abroad. The Sansthan is fully financed by the Government of India and works as a vital agency of the Central Government.
Prof. Ram Karan Sharma was the founder Director of the Rashtriya Sanskrit Sansthan. Prof. V Kutumba Shastry, Dr. Anita Bhatnagar Jain, Prof. Radha Vallabh Tripathi, Prof. A.P Sachidanand, Dr. N. R. Kannan, Sh. R.P. Sisodia, Sh. S.P. Goyal, Dr. Sukhbir Singh Sandhu had adorned the office of Vice Chancellor after declaration of the Sansthan as Deemed to be University. At Present Prof. P.N. Shastry is the Vice Chancellor of the Sansthan W.e.f. 29-04-2015. The other Directors of the Sansthan were Shri. P.C. Sharma, Shri S.K. Chaturvedi, Shri K.K. Sethi, Shri K.K. Khuller, Dr. Mandan Mishra, Shri Priyadarshi Thakur, Dr. K.K. Mishra, Prof. Vachaspati Upadhyaya & Prof. V.Kutumba Sastry.