Monetary Policy & RBI Tools — Set 1
Economy Advanced · मौद्रिक नीति और RBI साधन · Questions 1–10 of 200
When was the Reserve Bank of India (RBI) established?
Correct Answer: B. April 1, 1935
The RBI was established on April 1, 1935 under the Reserve Bank of India Act, 1934. It was originally a private shareholders' bank and was nationalised by the Government of India on January 1, 1949. Its headquarters is located in Mumbai (formerly Bombay).
Under which Act was the Reserve Bank of India established?
Correct Answer: B. RBI Act 1934
The Reserve Bank of India Act, 1934, provided the statutory basis for the establishment of RBI. The Act came into force on January 1, 1935, and RBI commenced operations on April 1, 1935. The Banking Regulation Act, 1949, governs commercial banks but was not the founding statute of RBI.
In which year was the RBI nationalised?
Correct Answer: C. 1949
The Reserve Bank of India was nationalised on January 1, 1949 through the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. Before nationalisation, it was a private shareholders' institution. After nationalisation, it became fully government-owned.
Where is the headquarters of the Reserve Bank of India located?
Correct Answer: D. Mumbai
The headquarters of the Reserve Bank of India is located in Mumbai (Maharashtra). RBI was originally headquartered in Calcutta (Kolkata) when it was established in 1935 but was moved to Mumbai in 1937. It currently has 27 regional offices across India.
Who became the Governor of RBI in December 2024?
Correct Answer: D. Sanjay Malhotra
Sanjay Malhotra was appointed as the 26th Governor of the Reserve Bank of India in December 2024. He succeeded Shaktikanta Das, who served as RBI Governor from December 2018 to December 2024. Before joining RBI, Sanjay Malhotra was the Revenue Secretary in the Ministry of Finance.
How many Deputy Governors does the RBI have?
Correct Answer: C. 4
The Reserve Bank of India has one Governor and four Deputy Governors. The four Deputy Governors oversee different departments such as monetary policy, banking regulation, foreign exchange management, and financial markets. This structure ensures efficient management of RBI's diverse functions.
Which of the following is NOT a function of the Reserve Bank of India?
Correct Answer: C. Issuing ₹1 coin
The RBI is the sole issuer of currency notes in India, except for ₹1 notes (which are issued by the Ministry of Finance). Coins, including ₹1 coins, are minted by the Government of India under the Coinage Act and distributed by RBI. The ₹1 note bears the signature of the Finance Secretary, not the RBI Governor.
The Monetary Policy Committee (MPC) of RBI was established in which year?
Correct Answer: D. 2016
The Monetary Policy Committee (MPC) was established in 2016 through an amendment to the Reserve Bank of India Act, 1934. The MPC replaced the earlier system where the RBI Governor alone decided the policy rate. This change was aimed at making monetary policy decisions more transparent and committee-based.
How many members does the Monetary Policy Committee (MPC) of RBI have?
Correct Answer: D. 6
The MPC consists of six members — three from the RBI (the Governor as Chairperson, a Deputy Governor, and one RBI official) and three external members nominated by the Government of India. Decisions are made by majority vote. In case of a tie, the RBI Governor has a casting vote.
How many times does the MPC meet in a year to review monetary policy?
Correct Answer: C. 6 times
The Monetary Policy Committee meets six times a year (approximately every two months) to review and set the policy repo rate. The meetings are scheduled in advance and the decisions are announced after each meeting. Extraordinary meetings can be called in case of an economic emergency.