In which year was the Reserve Bank of India established ?

The correct answer is - 1935

Key Points

• Year of Establishment
  • The Reserve Bank of India (RBI) was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
  • Its formation was a result of recommendations made by the Hilton Young Commission, which aimed to create a central bank for India.
• Purpose of Establishment
  • The RBI was created to regulate the issue of banknotes, maintain monetary stability, and operate the credit and currency system in India.
  • It serves as the central bank responsible for managing India's monetary policy and financial framework.
• Initial Setup
  • Initially, the RBI was headquartered in Kolkata, but it was moved to Mumbai in 1937.
  • It started as a privately-owned institution and later became fully owned by the Indian government in 1949.

Additional Information

• Hilton Young Commission
  • The commission was formed in 1926 to examine banking and financial systems in India.
  • It recommended the establishment of a central bank to improve India's financial structure and economy.
• Nationalization of RBI
  • In 1949, the RBI was nationalized, and ownership was transferred to the Government of India.
  • Nationalization aimed to ensure better control over monetary policies and align the central bank's operations with government goals.
• Key Functions of RBI
  • Formulating and implementing monetary policy to maintain price stability and economic growth.
  • Regulating and supervising banks and other financial institutions.
  • Managing foreign exchange and acting as the custodian of India's foreign currency reserves.
  • Issuing and regulating the supply of Indian currency.
• Other Related Facts
  • The RBI emblem features a tiger and a palm tree, symbolizing India's strength and agricultural heritage.
  • It plays a vital role in India's economic stability and development.