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: -Royal Commission on Indian Currency (Hilton Young Commission) recommends the establishment of a central bank to be called the ‘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 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 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-5: -Though banks were seemingly nationalized overnight in 1969, it was long coming since independence. In 1948, the Congress’ Economic Programme Committee, chaired by Jawaharlal Nehru, suggested nationalizing Imperial Bank of India.