Q. Consider the following statements regarding “Reserve Bank of India”:
1.It was set up by the RBI Act, 1934.
2.It was nationalized in 1955.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Explanation: The Reserve Bank of India (RBI) was set up in 1935 (by the RBI Act, 1934) as a private bank with two extra functions—regulation and control of the banks in India and being the banker of the government.

After nationalization in 1949, it emerged as the central banking body of India and it did not remain a ‘bank’ in the technical sense.

Source: Ramesh Singh