BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation.

Detailed explanation-2: -Hilton Young Commission Hilton-Young Commission was the Royal Commission on Indian Currency and Finance set up by British Government in 1920s.

Detailed explanation-3: -Following India’s independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

Detailed explanation-4: -Why was nationalisation of banks required? Nationalisation of banks was implemented under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970. The ordinance came into force on 19 July 1969, “ to serve better the needs of development of the economy in conformity with national policy objectives."

Detailed explanation-5: -The Imperial Bank of India was later nationalised in 1955 and was named The State Bank of India, which is currently the largest Public sector Bank.