BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century. The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission.

Detailed explanation-2: -A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base.

Detailed explanation-3: -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.

Detailed explanation-4: -Central Bank of India is a Public Sector Bank constituted by the Banking Companies (Acquisition & Transfer of undertakings) Act, 1970. 100% of its shares are held by Govt. of India.

Detailed explanation-5: -The Reserve Bank of India (RBI) is India’s central bank, which was created under the Reserve Bank of India Act on April 1, 1935.