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 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-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: -* To operate the credit and currency system of the country to its advantage. The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt.