[Solved] Which of the following is the central bank of India? (2024)

Detailed Solution

The correct answer isReserve Bank of India.

Key Points

• The central bank of India is The Reserve Bank of India (RBI). It was set up on April 1, 1935 under the Reserve Bank of India Act, 1934.
• The basis of the establishment of RBI was the recommendations given by a Committee known as ‘Hilton Young Commission’ set up by the then British Government in India.
• It started as a private bank with private shareholding as was in vogue in most foreign central banks of the world operating at that point of time.
• When RBI was set up, its capital was fixed at Rupees 5 crore i.e. Rupees 50 million).
• When the RBI was set up, it took over the functions of currency issue from the Government of India and the power of credit control from the then Imperial Bank of India.
• Initially RBI had its headquarter in Calcutta (now Kolkata) but soon shifted its headquarter to Bombay (now Mumbai) in 1937.
• However from January 1, 1949, RBI was nationalized by the Government via an Act known as Transfer of Public Ownership Act, 1948.
• The RBI Act covers whole of India in terms of supervision, control and guidance/directions to financial entities in India.

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