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Question
Explain the origin of RBI.
Short Note
Solution
The Imperial Bank of India carried out the note issue and other functions of the central bank. In 1926 the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J. M. Keynes and Sir Ernest Cable were its members) made a recommendation to create a central bank. As a result the RBI Act 1934 was passed and RBI launched in operations from April 1, 1935. RBI was established with a share capital of Rs. 5 crores divided into shares of Rs. 100 each fully paid up. The Head office of the RBI is situated in Mumbai.
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Origin of RBI
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