PREVIOUSLY ASKED IN:
PSC Miscellaneous Prelims 2018
Answer
1935
Explanation
The Reserve Bank of India (RBI), the central bank of the country, was established on April 1, 1935. It was set up in accordance with the provisions of the Reserve Bank of India Act, 1934, based on the recommendations of the Hilton Young Commission. Initially, it was privately owned, but following India's independence, the RBI was nationalized on January 1, 1949, making it fully owned by the Government of India.
Key Points
- > RBI was established on April 1, 1935.
- > It was recommended by the Hilton Young Commission (Royal Commission on Indian Currency and Finance).
- > The RBI headquarters moved from Calcutta to Mumbai in 1937.
- > Sir Osborne Smith was the first Governor of the RBI.
- > C.D. Deshmukh was the first Indian Governor of the RBI.
- > The RBI was nationalized on January 1, 1949.
- > The RBI controls the Monetary Policy of India.
Additional Information
Important Years in Indian Banking History
| Year | Landmark Event |
|---|---|
| 1921 | Formation of Imperial Bank of India (later SBI) |
| 1935 | Establishment of Reserve Bank of India (RBI) |
| 1949 | Nationalization of RBI |
| 1955 | Creation of State Bank of India (from Imperial Bank) |
| 1969 | Nationalization of 14 major commercial banks |
Memory Tips
- Double Date Trap: Remember 1935 for 'Established' and 1949 for 'Nationalized'. The Government of India Act 1935 and RBI establishment happened in the same year.