BANKING AFFAIRS

Detailed explanation-1: -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-2: -Sir Osborne Smith was the first Governor of the Reserve Bank of India. He served on this post from 1 April 1935 to 30 June 1937.

Detailed explanation-3: -Reserve Bank started its journey in Calcutta (now Kolkata) in the year 1935 at the heritage building (now RBI Museum) which is located at Council House Street.

Detailed explanation-4: -After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder’s bank, was nationalised in 1949.

Detailed explanation-5: -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.