Question

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the:
1. Reserve Bank of India Act, 1935
2. Reserve Bank of India Act, 1934
3. Reserve Bank of India Act, 1933
4. Reserve Bank of India Act, 1936

Answer 1

Correct Answer - Option 2 : Reserve Bank of India Act, 1934

The correct answer is Reserve Bank of India Act, 1934.

• The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the: Reserve Bank of India Act, 1934.
  • The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
  • The Central Office is where the Governor sits and where policies are formulated.
  • Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

• The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
  • "To regulate the issue of Banknotes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth."
    • Shri Shaktikanta Das, IAS Retd., former Secretary, Department of Revenue and Department of Economic Affairs, Ministry of Finance, Government of India assumed charge as the 25th Governor of the Reserve Bank of India effective 12^th December 2018.