The central office of the Reserve Bank of India was shifted from Calcutta to Bombay in which year?
- A.1935
- B.1937
- C.1949
- D.1955
Correct answer
Explanation
The correct answer is B, 1937. The Reserve Bank opened at Calcutta in 1935 and moved its central office permanently to Bombay two years later, which is where the Governor sits and where policy is announced. The Bank also has four Local Boards, for the western, eastern, southern and northern areas, with headquarters at Mumbai, Kolkata, Chennai and New Delhi.
Option A, 1935, is the year the Bank began operations, at Calcutta and not at Bombay. Option C, 1949, is the year of nationalisation, when ownership passed to the Government of India, and involved no change of office. Option D, 1955, is the year the State Bank of India was constituted out of the Imperial Bank of India. Three of these four years are real milestones, so the question rewards a candidate who has tied each year to the right event.
Read the full article: Functions of the RBI: Monetary Policy and Tools
Practice Questions
View allIn which year was the RBI nationalised?
- A.1971
- B.1956
- C.1949
- D.1935
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The Reserve Bank of India began as a shareholders' bank and was taken into public ownership on 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.
Read the full explanation →The legal provisions governing the management of foreign exchange reserves are laid down in the Reserve Bank of India Act, ______.
- A.1947
- B.1934
- C.1923
- D.1971
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The Reserve Bank of India Act, 1934 is the statute that created the Bank and it carries the provisions on the custody and deployment of the country's foreign exchange reserves, which the Bank holds and invests.
Read the full explanation →Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?
- A.Ministry of Finance
- B.State Bank of India
- C.Comptroller and Auditor General of India
- D.Reserve Bank of India
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Policy rates are announced by the Reserve Bank, and since 2016 the decision is taken by its Monetary Policy Committee of six members under the chairmanship of the Governor.
Read the full explanation →The Reserve Bank of India commenced its operations on
- A.1 April 1935
- B.1 July 1955
- C.1 January 1949
- D.1 April 1934
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The Reserve Bank of India Act was passed in 1934 and the Bank began work on the first day of April in the following year, with its central office at Calcutta.
Read the full explanation →The establishment of the Reserve Bank of India was recommended by which commission?
- A.Hilton Young Commission
- B.Narasimham Committee
- C.Fazl Ali Commission
- D.Sarkaria Commission
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Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 and recommended that the currency and credit functions then divided between the Government and the Imperial Bank be placed in a single central bank.
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