BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India was set up on the basis of the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission.

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’.

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: -Answer. Sir Edward Hilton Young was the Head of the Young Committee. Explanation: In 1926, the Hilton Young Commission was created as an inquiry body to look into the prospect of closer ties between the British colonies in East and Central Africa.

Detailed explanation-5: -Indian Central Banking Enquiry Committee revives the issue of the establishment of the Reserve Bank of India as the Central Bank for India. Reserve Bank of India Act, 1934, (II of 1934) constitutes the statutory basis on which the Bank is established.