BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation.

Detailed explanation-2: -Hilton Young Commission Hilton-Young Commission was the Royal Commission on Indian Currency and Finance set up by British Government in 1920s.

Detailed explanation-3: -1961–1968. As a result of bank crashes, the RBI was requested to establish and monitor a deposit insurance system. Meant to restore the trust in the national bank system, it was initialised on 7 December 1961. The Indian government founded funds to promote the economy and used the slogan “Developing Banking".

Detailed explanation-4: -Detailed Solution. The correct answer is the State Bank of India.

Detailed explanation-5: -The creation of the State Bank of India in July 1955 followed the passage of the Imperial Bank of India into state ownership. The nationalization of the Imperial Bank represented the culmination of a protracted debate on its role in independent India.