Sunspot data and large-scale solar magnetic field data are used to demonstrate the operation of the Babcock-Leighton mechanism on the Sun. A dynamo model is developed that employs jointly a nonlocal alpha-effect of the Babcock-Leighton type and diamagnetic downward pumping. The pumping concentrates magnetic fields to the base of the convection zone. The magnetic cycle period, equatorial symmetry of the generated fields, their meridional drift, and the polar-to-toroidal field ratio obtained in the model agree with observations.