Political Science · Political Processes in India
UGC NET August 2024 Political Science
When was the Reserve Bank of India established?
A1951
B1971
C1935 ✓ Correct
D1947
Correct answer: (C) 1935 — The Reserve Bank of India was established on 1 April 1935.
Explanation
★The Reserve Bank of India was established on 1 April 1935.
★It was set up under the Reserve Bank of India Act, 1934, as the country's central bank.
★Its creation followed the recommendation of the Hilton Young Commission, also called the Royal Commission on Indian Currency and Finance, in 1926.
★The RBI was nationalised on 1 January 1949 and is now fully owned by the Government of India.
★Its core functions include issuing currency, acting as banker to the government and banks, and managing monetary policy.
★For NET, fix the dates: RBI Act 1934, establishment 1935, nationalisation 1949, with Hilton Young Commission as the origin.
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