RBI: RBI was established as a shareholder bank. After independence, it was nationalized by the Government of India in 1949.
Reserve Bank of India has a very important role in the development of India. The central bank is responsible for controlling inflation, boosting the country’s economy and keeping the country economically strong. The Central Bank of India was established on April 1, 1935.
How was RBI established?
The central bank in India had started functioning even before independence. It was established by the British at that time on the suggestion of the Hilton Young Commission. At that time, the Reserve Bank of India Act, 1934 was brought by the British for the establishment of RBI, after which from April 1, 1935, RBI started functioning as the central bank of the country.
Why was RBI established?
Since 1935, the British had mainly two separate institutions for printing notes in India and handling the accounts and debts of the government, in which the Controller of Currency was responsible for printing notes and the Imperial Bank of India was for managing the accounts and debts of the government. -Kept a book. At the same time, after World War One, due to financial reasons, it was very difficult for the British to run these two institutions together. For this reason, the Hilton Young Commission had suggested the establishment of RBI. At the time of its establishment, RBI had the charge of currency and banking departments of Calcutta (now Kolkata), Bombay (now Mumbai), Madras (Chennai), Delhi, Rangoon, Karachi, Lahore and Kanpur.
Interesting facts about RBI
- At the time of establishment of RBI, its headquarters was in Kolkata. Then in 1937 it was shifted to Bombay (now Mumbai).
- RBI also managed the banking system of Burma (now Myanmar) before Japan’s occupation till April 1947.
- After the partition of India, RBI also served as the central bank of Pakistan until June 1948.
- RBI was established as a shareholder bank. Later in 1949 the government nationalized it.
- RBI comes under the Finance Ministry of the Government of India.
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