WBCS.LIVE practice question

Which bank was the first to be nationalized in India in 1949?

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

Answer options

  1. Reserve Bank of India
  2. State Bank of India
  3. Bank of Baroda
  4. Punjab National Bank

Correct answer and explanation

Correct answer: Reserve Bank of India

Explanation: āœ… Correct Answer: A) Reserve Bank of India šŸ“š Explanation: The Reserve Bank of India (Transfer to Public Ownership) Act, 1948, led to the nationalization of the RBI on January 1, 1949. Before this, the RBI functioned as a private shareholders' institution despite being the central bank. This transition ensured that the central bank functioned strictly in the interest of the sovereign Indian state.