Reserve Bank of India(RBI) was established on
- 1st April,1925
- 1st April 1935
- 1st April 1945
- 1st April 1955
Correct Answer: 1st April, 1935
Answer Explanation
On 1st April 1935, the Reserve Bank of India (RBI) was established by the Reserve Bank of India Act, 1934. In addition to formulating monetary policy and ensuring financial stability, the RBI serves as the central bank of India.
In addition to issuing and regulating currency, the central bank supervises the banking system, manages foreign exchange reserves, and promotes financial stability.
Why the other options are not correct
a.1st April,1925
This option is incorrect because the Reserve Bank of India was not established in 1925. The British colonial authorities and the Imperial Bank of India handled India’s banking and monetary functions prior to the RBI’s establishment. Ten years later, in 1935, the RBI was set up to assume these responsibilities and serve as the central monetary authority.
c.1st April 1945:
This option is incorrect because the Reserve Bank of India was already established by 1945. The Reserve Bank of India came into existence on 1st April 1935. As a result of its operation for a decade by 1945, it played an important role in shaping India’s financial landscape and regulating banking.
d.1st April 1955
It is incorrect to use 1st April 1955 because the Reserve Bank of India was established before 1955. As mentioned earlier, the Reserve Bank of India was formed on 1st April 1935. Over the course of two decades, it had guided the country’s monetary policy and implemented a variety of economic stabilization measures by 1955.
Conclusion
The Reserve Bank of India (RBI) holds a significant place in India’s financial system, and its establishment on 1st April 1935 marked a crucial milestone in the nation’s economic development. In order to meet the changing financial landscape and address economic challenges, the RBI has adapted and evolved over the years. In order to ensure stable economic growth and safeguard the integrity of the Indian banking sector, it continues to play a vital role as the country’s central bank.
Which of the following is not a function of commercial bank?