When was Reserve Bank of India established?
- A.April 1948
- B.April 1935
- C.April 1945
- D.April 1936
Show answer
Correct answer: B. April 1935
Explanation
The correct answer is B, April 1935. The Reserve Bank of India started working on 1 April 1935 under the Reserve Bank of India Act, 1934, following the recommendation of the Hilton Young Commission of 1926. It began as a privately owned shareholders' bank with its central office in Calcutta, which moved permanently to Bombay (Mumbai) in 1937. Its first Governor was Sir Osborne Smith, and C. D. Deshmukh became the first Indian Governor in 1943. The bank was nationalised on 1 January 1949, after which it has been fully owned by the Government of India. A is wrong because nothing about the RBI's founding happened in April 1948; 1949 is the nationalisation year. C is wrong because April 1945 was still wartime and the bank had already existed for ten years. D is wrong because April 1936 is a year too late; the bank had already completed its first year. Exam tip: RBI Act 1934, RBI born 1 April 1935, nationalised 1 January 1949.