The Imperial Bank of India carried out the note issue and other functions of the central bank. In 1926 the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J. M. Keynes and Sir Ernest Cable were its members) made recommendation to create a central bank. As a result the RBI Act 1934 was passed and RBI launched in operations from April 1,1935. RBI was established with a share capital of Rs. 5 crores divided into shares of Rs. 100 each fully paid up. The Head office of the RBI is situated in Mumbai.
