Which commission recommended the establishment of the Reserve Bank of India?
- A.Narasimham Committee
- B.Hilton Young Commission
- C.Chelliah Committee
- D.Sivaraman Committee
Correct answer
Explanation
The correct answer is B, the Hilton Young Commission. 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. Its recommendation led to the Reserve Bank of India Act of 1934 and the Bank commenced operations on 1 April 1935.
Option A, the Narasimham Committee, comes much later: the working group on rural banks that led to Regional Rural Banks, and then the reform committees of 1991 and 1998. Option C, the Chelliah Committee, reported on reform of the tax system in the early 1990s and has nothing to do with central banking. Option D, the Sivaraman Committee, recommended the National Bank for Agriculture and Rural Development, which was set up on 12 July 1982. Examiners pair each committee with its institution, so learn them as pairs.
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
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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
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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
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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 →The Imperial Bank of India was renamed the State Bank of India in which year?
- A.1935
- B.1949
- C.1955
- D.1959
Show answer
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.
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