RBI established in which year?
VerifiedAnswer: 1 April 1935, Kolkata
Explanation:
The Reserve Bank of India (RBI) was established on 1st April 1935 in Kolkata (then known as Calcutta). This historic establishment marked India's journey toward having its own central banking system, which was crucial for the country's economic development and monetary policy management.
The RBI was created based on the recommendations of the Hilton Young Commission, which was set up in 1926 to study India's monetary system. The commission suggested establishing a central bank to regulate currency and credit in the country. The Reserve Bank of India Act, 1934 was passed by the British Parliament, which led to the formation of RBI.
Initially, RBI was established as a private shareholders' bank with a paid-up capital of ₹5 crores. The first Governor of RBI was Sir Osborne Smith, who served from 1935 to 1937. The bank's headquarters were set up in Kolkata, which was then the commercial capital of India and the seat of British administration.
However, after India gained independence in 1947, the RBI was nationalized on 1st January 1949. This meant that the Government of India became the sole owner of the central bank. Later, in 1937, the headquarters was shifted from Kolkata to Mumbai, where it remains today.
The establishment of RBI was a significant milestone in India's financial history. From its inception, the bank has been responsible for issuing currency notes, managing the country's foreign exchange reserves, regulating commercial banks, and implementing monetary policy. Today, RBI continues to play a vital role in maintaining financial stability and promoting economic growth in India, making its establishment date of 1st April 1935 a crucial date to remember in Indian economic history.
