Q. Consider the following statements regarding the Reserve Bank of India (RBI):
1.The RBI was originally established as a private bank under the RBI Act, 1934.
2.After nationalisation in 1949, the RBI became a technical commercial bank with limited regulatory functions.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- The RBI was set up in 1935 as a private bank under the Reserve Bank of India Act, 1934.
- After nationalisation in 1949, RBI became the central banking authority of India, not a commercial bank. It gained extensive regulatory and monetary control functions, not limited ones.
Source: Indian Economy (Ramesh Singh)
