BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India was formally inaugurated on Monday, April 1, 1935 with its Central Office at Calcutta. It began operations by taking over from the Government the functions hitherto performed by the Controller of Currency and from the Imperial Bank the management of Government Accounts and Public Debt.

Detailed explanation-2: -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-3: -In 1950, the first Republic India banknotes were issued in the denominations of Rs. 2, 5, 10 and 100.

Detailed explanation-4: -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.