In which year RBI established?

Question

Accepted Answer

The correct option is 3:
The Reserve Bank of India (RBI) was established in 1935, specifically on April 1, 1935, based on the recommendations of the Hilton Young Commission (also known as the Royal Commission on Indian Currency and Finance) and following the enactment of the Reserve Bank of India Act, 1934. The RBI was initially set up as a private shareholders’ bank and began its operations from Calcutta (Kolkata), later moving its permanent headquarters to Mumbai in 1937. It was established to regulate the issue of banknotes, maintain reserves to secure monetary stability in India, and generally operate the currency and credit system of the country. This marked a crucial step toward creating an independent central banking authority for the nation.

The incorrect option is 1: 1919
The year 1919 is not related to the establishment of the Reserve Bank of India. While it falls within the period of British rule when discussions about a central bank were ongoing, no central bank was established in this year.

The incorrect option is 2: 1929
The year 1929 is famous for the Great Depression which highlighted the need for centralized monetary control globally. However, the RBI was not established until several years later, although the groundwork and legislative framework were being laid in the late 1920s and early 1930s.

The incorrect option is 4: 1939
While 1939 is close to the RBI's establishment year, it is incorrect. By 1939, the RBI was already fully operational, having been established four years earlier.