The Reserve Bank of India commenced its operations on which date?
- A.1 April 1935
- B.1 January 1935
- C.1 April 1934
- D.1 July 1935
Correct answer
Explanation
The correct answer is A, 1 April 1935. The Reserve Bank of India Act was passed in 1934 and the Bank commenced operations on 1 April 1935, taking over note issue from the Controller of Currency and the management of government accounts and public debt from the Imperial Bank of India. Its central office was at Calcutta to begin with and moved to Bombay in 1937.
Option B, 1 January 1935, and option D, 1 July 1935, are made up dates placed to catch a half remembered year. Option C, 1 April 1934, mixes the year of the Act with the day of the month on which operations began, and is the commonest wrong choice. Keep three dates apart in this story: 1926 for the Hilton Young Commission, 1934 for the Act and 1 April 1935 for the start of operations, with 1 January 1949 for nationalisation.
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
Show answer
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 →