Q. Under which of the following act, Reserve Bank of India was formed?

[A] Government of India act, 1919

[B] Government of India act, 1935

[C] Reserve Bank of India Act, 1934

[D] The Banking Regulation Act, 1949

Answer: C

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: TMH – Ramesh Singh