WBCS.LIVE practice question

The Reserve Bank of India was established in the year

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 1930
  2. 1935
  3. 1947
  4. 1951

Correct answer and explanation

Correct answer: 1935

Explanation: The Reserve Bank of India (RBI) was established in 1935 under the RBI Act, 1934. 📚 Other Information: ▪️ It was founded on 1st April 1935 in Kolkata and later moved to Mumbai in 1937. ▪️ The Hilton Young Commission (1926) recommended its establishment. ▪️ It was nationalised in 1949 after Independence. ▪️ The RBI regulates currency, credit, and banking system in India. ▪️ It acts as the banker to the government and the custodian of foreign exchange. ▪️ The Governor is the chief executive of the RBI. ▪️ Current monetary policy is framed by the Monetary Policy Committee (MPC). ▪️ The central office of RBI is located at Mumbai, Maharashtra.