BANKING AFFAIRS

Detailed explanation-1: -The Hilton Young Commission (complete title: Royal Commission on Indian Currency and Finance) was a Commission of Inquiry appointed in 1926 to look into the possible closer union of the British territories in East and Central Africa.

Detailed explanation-2: -RBI History-Brief History-Chronology of Events-1926 to 1935. ‘Reserve Bank of India’. Indian Central Banking Enquiry Committee revives the issue of the establishment of the Reserve Bank of India as the Central Bank for India.

Detailed explanation-3: -The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

Detailed explanation-4: -UPSC Mains Notes: Hilton-Young Commission was the Royal Commission on Indian Currency and Finance set up by British Government of India in 1920s. In 1926, this commission had recommended to the government to create a central bank in the country. On the basis of mainly this commission, the RBI act was passed.