BANKING AFFAIRS

Detailed explanation-1: -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-2: -The Commission recommended an administrative union of the East African mainland territories, possibly to be joined later by the Central African ones. It also proposed that the legislatures of each territory should continue and saw any form of self-government as being a long-term aspiration.

Detailed explanation-3: -The correct answer is Lord Reading. Lord Reading is the viceroy who appointed the ‘Hilton Young commission’ which led to the establishment of RBI. The Hilton Young Commission was appointed in 1926. It was also called the “royal commission".

Detailed explanation-4: -The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.