GENERAL KNOWLEDGE

Detailed explanation-1: -RBI did not start as a Government owned bank but as a privately held bank without major government ownership. It started with a Share Capital of Rs. 5 Crore, divided into shares of Rs. 100 each fully paid up.

Detailed explanation-2: -a) Capital paid-up: The Reserve Bank was constituted as a private shareholders’ Bank in 1935 with an initial paid-up capital of ‘5 crore. The Bank was nationalised with effect from January 1, 1949 and the entire ownership is now vested in the Government of India.

Detailed explanation-3: -Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.