The Imperial Bank of India was renamed the State Bank of India in which year?
- A.1935
- B.1949
- C.1955
- D.1959
Correct answer
Explanation
The correct answer is C, 1955. The All India Rural Credit Survey Committee under A. D. Gorwala reported that rural credit needed a bank with branches across the country and in state partnership. Parliament passed the State Bank of India Act, 1955, and on 1 July 1955 the Imperial Bank of India became the State Bank of India.
Option A, 1935, is the year the Reserve Bank began operations and took over from the Imperial Bank the management of government accounts and public debt, which is a related but different event. Option B, 1949, is the year the Reserve Bank passed into public ownership and the Banking Regulation Act was enacted. Option D, 1959, is the year of the State Bank of India (Subsidiary Banks) Act, under which the banks of the former princely states became subsidiaries of the State Bank; they were merged into the parent on 1 April 2017.
Read the full article: History of Banking in India: Nationalisation, RBI and PYQs
Practice Questions
View allIn which of the following years did the fourteen major Indian scheduled commercial banks get nationalised in India?
- A.1969
- B.1970
- C.1972
- D.1950
Show answer
On 19 July 1969 the Government of India issued an ordinance taking over the fourteen largest Indian scheduled commercial banks, those whose deposits stood at ₹50 crore or more.
Read the full explanation →Which among the following is the oldest joint stock bank in India?
- A.Allahabad Bank
- B.Bank of Baroda
- C.Yes Bank
- D.Punjab National Bank
Show answer
It was founded in 1865 and is remembered as the oldest joint stock bank in India, a joint stock bank being one owned by shareholders rather than by a partnership of agency houses.
Read the full explanation →The Reserve Bank of India was fully nationalised and owned by the Government of India in which of the following years?
- A.1947
- B.1948
- C.1949
- D.1950
Show answer
The Reserve Bank opened in 1935 as a shareholders' bank with privately held share capital.
Read the full explanation →When was the Indian Rupee de-linked from the Pound Sterling?
- A.1975
- B.1947
- C.1982
- D.1963
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The rupee was tied to the pound sterling from colonial times and stayed pegged to it after independence. In 1975 the link was cut and the rupee was tied instead to a basket of currencies of India's major trading partners, with the Reserve Bank fixing the daily rate.
Read the full explanation →Which commission recommended the establishment of the Reserve Bank of India?
- A.Narasimham Committee
- B.Hilton Young Commission
- C.Chelliah Committee
- D.Sivaraman Committee
Show answer
Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 that the control of currency and of credit should not be split between the Government and the Imperial Bank but placed in one central bank.
Read the full explanation →