In which year was the 'Reserve Bank of India' established?

The correct answer is '1935'.

Key Points

• Establishment of the Reserve Bank of India (RBI):
  • The Reserve Bank of India was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
  • It serves as India's central banking institution and plays a pivotal role in regulating the country's monetary policy, issuing currency, and maintaining financial stability.
  • The RBI initially started as a private entity but was nationalized in 1949, transforming into a fully government-owned institution.
  • The primary functions of the RBI include managing inflation, overseeing the banking system, and ensuring the smooth functioning of the country's economy.

Additional Information

• Incorrect Options:
  • 1950: This year marks the adoption of the Constitution of India and the establishment of India as a Republic, but it is not related to the founding of the RBI.
  • 1955: This year is significant because the Imperial Bank of India was transformed into the State Bank of India, but it does not pertain to the establishment of the RBI.
  • 1947: This year marks India's independence from British rule, but the RBI was already established in 1935 and continued functioning post-independence.
• Role of the RBI Today:
  • The RBI plays a crucial role in the Indian economy, such as controlling inflation, managing foreign exchange reserves, and ensuring financial stability.
  • It also oversees the functioning of banks and non-banking financial institutions to maintain trust in the financial system.