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Generate QuizThe Reserve Bank of India (RBI) was originally established as a private shareholders' bank in 1935 based on the recommendations of the:
- Hilton Young Commission (Royal Commission on Indian Currency and Finance)
- Narasimham Committee
- Shivaraman Committee
- Urjit Patel Committee
Answer: Hilton Young Commission (Royal Commission on Indian Currency and Finance)
The Royal Commission on Indian Currency and Finance, appointed in 1925 and chaired by Sir Hilton Young, recommended the creation of a central bank to separate the control of currency and credit from the government. This led to the RBI Act of 1934, and the bank commenced operations on April 1, 1935, before being nationalized in 1949.