Question

Name the Commission which was responsible for the establishment of the Reserve Bank of India.
1. MacDonnell Commission
2. Butler Commission
3. Hilton Young Commission
4. Whitley Commission

Answer 1

Correct Answer - Option 3 : Hilton Young Commission

The correct answer is Hilton Young Commission.

• The Royal Commission on Indian Currency and Finance set up the Hilton Young Commission in 1926 to establish the Reserve Bank of India.
• Earlier the Imperial Bank of India acted as the central bank of India. It was established under the Imperial Bank of India Act, 1920.
• The Reserve Bank of India was established on 1 April 1935.
• Dr. B. R. Ambedkar's book  "The Problem of Rupee - Its origin and its solutions", also influenced its creation.

• The Reserve Bank of India did not start as a Government-owned bank, but as a private one without major government ownership. 
• It had a share capital of Rs. 5 Crore, divided into shares of Rs. 100 each fully paid up.
• It was originally headquartered in Kolkata but shifted to Mumba in 1937.
• It was nationalized in 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.