Which among the following is NOT a correct statement? 1. The Reserve Bank of India worked as Central Bank of Burma till April 1947 2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948 3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975 4. The Reserve Bank of India commenced its operations on April 1, 1935
Which among the following is NOT a correct statement? 1. The Reserve Bank of India worked as Central Bank of Burma till April 1947 2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948 3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975 4. The Reserve Bank of India commenced its operations on April 1, 1935 Correct Answer 3
The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.
The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.
The Bank was constituted to
- Regulate the issue of banknotes
- Maintain reserves with a view to securing monetary stability and
- To operate the credit and currency system of the country to its advantage.
The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts, and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore, and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi, and Rangoon.
Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till the Japanese Occupation of Burma and later up to April 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan up to June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder's bank, was nationalized in 1949.
Bangladesh Bank is the central bank of Bangladesh and is a member of the Asian Clearing Union. It is fully owned by the Government of Bangladesh. Bangladesh Bank, the central bank and apex regulatory body for the country's monetary and financial system, was established in Dhaka as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December 1971.
