GENERAL KNOWLEDGE

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.

Detailed explanation-2: -On the 1st of January, 1949, the RBI was nationalised by the Government of India. It then started functioning as the central bank of India.

Detailed explanation-3: -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."