The Reserve Bank of India was nationalised with effect from:
- A.1 April 1935
- B.1 January 1949
- C.1 July 1955
- D.19 July 1969
Correct answer
Explanation
The correct answer is B, 1 January 1949. The Reserve Bank of India began as a shareholders' institution in 1935 and was taken into full government ownership from 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. From that date the entire share capital of the central bank has been held by the Union government.
Option A, 1 April 1935, is the day the Reserve Bank began operations under the RBI Act, 1934, following the recommendation of the Hilton Young Commission, but it was then privately held. Option C, 1 July 1955, is the day the Imperial Bank became the State Bank of India. Option D, 19 July 1969, is the date of the first round of commercial bank nationalisation. All four dates belong to this topic, which is why the question is set as a list of them.
Read the full article: Bank Nationalisation and Mergers in India: 1949 to 2020
Practice Questions
View allIn which year was the State Bank of India created following the passage of the Imperial Bank of India into state ownership?
- A.1947
- B.1965
- C.1955
- D.1950
Show answer
The All India Rural Credit Survey Committee found that rural credit needed a bank with a nationwide branch network, so Parliament passed the State Bank of India Act, 1955, and the Imperial Bank of India was taken over and renamed the State Bank of India with effect from 1 July…
Read the full explanation →Small Industries Development Bank of India (SIDBI) was established in which year?
- A.1990
- B.1988
- C.1992
- D.1994
Show answer
SIDBI was set up under the Small Industries Development Bank of India Act, 1989 and began operations in 1990 as the principal financial institution for the promotion, financing and development of micro, small and medium enterprises.
Read the full explanation →How many commercial banks were nationalised in the first round on 19 July 1969?
- A.Six
- B.Eight
- C.Fourteen
- D.Twenty
Show answer
On 19 July 1969 the government promulgated an ordinance nationalising fourteen major commercial banks, each of which held deposits of fifty crore rupees or more.
Read the full explanation →In the second round of bank nationalisation in April 1980, how many banks were nationalised?
- A.Four
- B.Six
- C.Seven
- D.Eleven
Show answer
On 15 April 1980 six private banks whose deposits were two hundred crore rupees or more were nationalised: Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank.
Read the full explanation →Which bank was merged with Punjab National Bank in 1993, in the first merger of two nationalised banks?
- A.New Bank of India
- B.Oriental Bank of Commerce
- C.United Bank of India
- D.Nedungadi Bank
Show answer
New Bank of India, one of the six banks nationalised in 1980, ran into heavy losses and was amalgamated with Punjab National Bank in 1993.
Read the full explanation →