Consider the following statements regarding the Government of India Act 1935: (a) It provided for the Provincial autonomy. (b) It provided for the establishment of the Federal Court. (c) It provided for the establishment of Reserve Bank of India. Which of the above statements are correct?

Consider the following statements regarding the Government of India Act 1935: (a) It provided for the Provincial autonomy. (b) It provided for the establishment of the Federal Court. (c) It provided for the establishment of Reserve Bank of India. Which of the above statements are correct? Correct Answer (a) and (b)

The correct answer is (a) and (b).

Important Points

Government of India Act of 1935

  • ​The Act marked a second milestone towards a completely responsible government in India.
  • It was a lengthy and detailed document having 321 Sections and 10 Schedules.
  • The features of this Act were as follows:
    • It provided for the establishment of an All-India Federation consisting of provinces and princely states as units.
      • The Act divided the powers between the Centre and units in terms of three lists–Federal List (for Centre, with 59 items), Provincial List (for provinces, with 54 items) and the Concurrent List (for both, with 36 items).
      • Residuary powers were given to the Viceroy.
      • However, the federation never came into being as the princely states did not join it.
    • It abolished dyarchy in the provinces and introduced ‘provincial autonomy’ in its place. Hence, Statement a is correct.
      • The provinces were allowed to act as autonomous units of administration in their defined spheres.
      • Moreover, the Act introduced responsible Governments in provinces, that is, the Governor was required to act with the advice of ministers responsible to the provincial legislature.
      • This came into effect in 1937 and was discontinued in 1939.
    • It provided for the adoption of dyarchy at the Centre.
      • Consequently, the federal subjects were divided into reserved subjects and transferred subjects.
      • However, this provision of the Act did not come into operation at all.
    • It introduced bicameralism in six out of eleven provinces.
      • Thus, the legislatures of Bengal, Bombay, Madras, Bihar, Assam and the United Provinces were made bicameral consisting of a legislative council (upper house) and a legislative assembly (lower house).
      • However, many restrictions were placed on them.
    • It further extended the principle of communal representation by providing separate electorates for depressed classes (Scheduled Castes), women and labour (workers).
    • It abolished the Council of India, established by the Government of India Act of 1858.
      • The secretary of state for India was provided with a team of advisors.
    • It extended the franchise.
      • About 10 per cent of the total population got the voting right.
    • It provided for the establishment of a Reserve Bank of India to control the currency and credit of the country.
    • It provided for the establishment of not only a Federal Public Service Commission but also a Provincial Public Service Commission and Joint Public Service Commission for two or more provinces.
    • It provided for the establishment of a Federal Court, which was set up in 1937. Hence, statement b is correct.

Confusion Points

  • Though the Government of India Act of 1935 has provision for the establishment of a Reserve Bank of India, the official website of RBI gives us the following information that is 
    • The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
    • The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
      • The Central Office is where the Governor sits and where policies are formulated.
    • Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.

Mistake Points

  • MPSC's official final key has also given option 1. Hence, We should consider option 1 as the correct answer.

Related Questions

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: In a bid to find a successor to founder CEO Rana Kapoor, The Yes Bank has formed a five member panel including two members from outside the bank, less than a week after Reserve Bank of India (RBI) cut short his tenure until January 31 2019. In a press release sent to the exchanges late on Tuesday evening, Yes Bank said that the “search and selection committee” would comprise of three members of the bank’s nomination and remuneration committee and also two external members, which the bank did not specify.  Courses of action: I. However, the board has requested the Reserve Bank of India (RBI) to grant an extension to Kapoor up to September 2019 ‘for finalization of audited financial statements for fiscal year ending March 2019 and in order for the statutory AGM process to be completed’. II. The board has also recommended the elevation of senior group presidents Rajat Monga and Pralay Mondal as executive directors ‘to ensure a long term succession plan within Yes Bank, and given the demonstrated track record of these two senior leaders’. All this will be subject to RBI approval.  III. The panel will comprise of five members and will focus on find a successor to Rana Kapoor.