Question 1

In which year was the Reserve Bank of India established?

Accepted Answer

1935. The Reserve Bank of India was established on April 1, 1935, under the provisions of the RBI Act, 1934. It initially started as a private shareholders' bank before its nationalization. This date marks the beginning of formal central banking in India.

Question 2

Which commission recommended the establishment of a central bank for India?

Accepted Answer

Hilton Young Commission. The Hilton Young Commission, also known as the Royal Commission on Indian Currency and Finance, made this recommendation in 1926. The commission's goal was to ensure stability in the Indian monetary system. Its report eventually led to the creation of the RBI.

Question 3

Where was the first headquarters of the Reserve Bank of India located?

Accepted Answer

Calcutta. The central office of the RBI was initially established in Calcutta (now Kolkata). It was permanently moved to Mumbai in 1937 to be closer to the financial hub. The Governor of the RBI sits in the central office.

Question 4

When was the Reserve Bank of India nationalized?

Accepted Answer

1949. The Reserve Bank of India was nationalized on January 1, 1949, through the Transfer of Public Ownership Act. This transitioned the bank from a private entity to a government-owned central bank. Since then, the RBI has been the state's sole monetary authority.

Question 5

Who was the first Governor of the Reserve Bank of India?

Accepted Answer

Sir Osborne Smith. Sir Osborne Smith served as the first Governor of the RBI from its inception in 1935. He was a professional banker with experience from the Bank of New South Wales. He resigned before completing his full term due to policy differences.

RBI & Policy — Set 1