After a long service as a sports administrator, professional soccer referee, civic leader, and serving in local government structures dealing with local affairs, Rajbansi was elected to the Indian Council in 1974. In 1976 he resigned from the Indian Council protesting the inter Cabinet council between the Indian Council and government cabinet of Prime Minister John Vorster. In 1981 he formed the National Peoples Party (NPP) and was elected leader of this new party. The NPP successfully competed for the election to the South African Indian Council and took control of SAIC.
In 1984, following Prime Minister Pieter Willem Botha's constitutional reforms, the NPP stood for the newly constituted House of Delegates, the Indian only parliamentary chamber, and won the majority of seats in the House. As a result, Rajbansi became member of the South African Cabinet and chairman for the Ministers' Council for Indian Affairs. After South Africa's transition to democracy in 1994, the NPP became the Minority Front and continued to draw support from the Indian community.
After the 2004 elections, Rajbansi made an alliance with the African National Congress and he became MEC for Sports and Recreation for Kwazulu Natal Province.