BANKING AFFAIRS

Detailed explanation-1: -1935: The Reserve Bank commenced operations as India’s central bank on April 1 as a private shareholders’ bank with a paid up capital of rupees five crores (rupees fifty million).

Detailed explanation-2: -RBI was formed. At the time of establishment, the authorized capital of the Reserve Bank of India was ₹50 million. The government’s share in this was only ₹2-2.2 million.

Detailed explanation-3: -5 Crore, divided into shares of Rs. 100 each fully paid up. In the beginning, this entire capital was owned by private shareholders.

Detailed explanation-4: -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. * To operate the credit and currency system of the country to its advantage.

Detailed explanation-5: -Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.