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India Cluster331 Verified Questions
Reserve Bank of India GK Questions & Answers
The Reserve Bank of India (RBI) is the central banking institution of India, established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934, following the recommendations of the 1926 Royal Commission on Indian Currency and Finance (Hilton Young Commission). Nationalized on January 1, 1949, the RBI functions as the monetary authority, regulator of the financial system, manager of foreign exchange reserves, and issuer of Indian currency banknotes under Section 22 of the RBI Act.
High-yield conceptual summaries for competitive exams and rapid revision.
The RBI was established on April 1, 1935, based on the recommendations of the Hilton Young Commission.
RBI was nationalized on January 1, 1949 under the RBI (Transfer to Public Ownership) Act, 1948.
The Monetary Policy Committee (MPC) consists of 6 members (3 from RBI, 3 appointed by Central Government) headed by the Governor.
Quantitative credit control instruments include Repo Rate, Standing Deposit Facility (SDF), Marginal Standing Facility (MSF), CRR, and SLR.
Showing 25 Curated Questions331 Total in Bank
1ID: GK-BANK-00001
easyRBI Functions, Repo Rates & Monetary Policy
The Reserve Bank of India (RBI) commenced its operations on 1 April 1935 under which statutory act?
Verified Explanation
The Reserve Bank of India was established on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934, following the recommendations of the Hilton Young Commission.
2ID: GK-BANK-00004
easyRBI Functions, Repo Rates & Monetary Policy
Who was the first Governor of the Reserve Bank of India upon its establishment in 1935?
Verified Explanation
Sir Osborne Smith was the first Governor of the Reserve Bank of India, serving from 1 April 1935 to 30 June 1937.
3ID: GK-BANK-00006
easyRBI Functions, Repo Rates & Monetary Policy
On which date was the Reserve Bank of India nationalised by the Government of India under the RBI (Transfer to Public Ownership) Act?
Verified Explanation
The Reserve Bank of India was nationalised on 1 January 1949, transforming it from a shareholder-owned institution to a fully government-owned central bank.
4ID: GK-BANK-00366
easyRBI Functions, Repo Rates & Monetary Policy
Under which section of the Reserve Bank of India Act, 1934 does the RBI hold the exclusive right to issue bank notes in India?
Verified Explanation
Section 22 of the RBI Act, 1934 gives the Reserve Bank the sole authority for the issuance of bank notes in India, except for the One Rupee note and coins issued by the Ministry of Finance.
5ID: GK-BANK-00378
mediumCommercial Banks, Payment Banks & SFBs
How is the standard 'Bank Rate' formally defined under Section 49 of the Reserve Bank of India Act, 1934?
Verified Explanation
Section 49 of the RBI Act defines the Bank Rate as the standard rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial papers eligible under the Act.
6ID: GK-BANK-00401
easyHistory of Indian Banking & Nationalisation
On which date did the Reserve Bank of India (RBI) officially commence its central banking operations?
Verified Explanation
The Reserve Bank of India commenced operations on 1 April 1935 as a shareholders' bank with a paid-up capital of Rs 5 crore in accordance with the provisions of the RBI Act, 1934.
7ID: GK-BANK-00458
easyHistory of Indian Banking & Nationalisation
Who served as the very first Governor of the Reserve Bank of India when it commenced operations on April 1, 1935?
Verified Explanation
Sir Osborne Smith was the first Governor of the Reserve Bank of India, serving from April 1, 1935 to June 30, 1937.
8ID: GK-BANK-00486
easyRBI Functions, Repo Rates & Monetary Policy
On which date did the Reserve Bank of India get nationalised and transformed into a completely state-owned central bank?
Verified Explanation
Under the Reserve Bank (Transfer to Public Ownership) Act, 1948, the Reserve Bank of India was nationalised with effect from January 1, 1949, transferring all private shares to the Central Government.
9ID: GK-BANK-00553
easyRBI Functions, Repo Rates & Monetary Policy
Which statutory authority in India is empowered to issue banknotes under Section 22 of the Reserve Bank of India Act, 1934?
Verified Explanation
Under Section 22 of the RBI Act, 1934, the Reserve Bank of India has the sole right to issue banknotes in India (except one-rupee coins and notes issued by the Ministry of Finance).
10ID: GK-BANK-00575
easyHistory of Indian Banking & Nationalisation
On the recommendations of which historic commission appointed in 1926 was the Reserve Bank of India established as the central banking authority?
Verified Explanation
The Royal Commission on Indian Currency and Finance (presided over by Edward Hilton Young in 1926) recommended setting up a central bank—to be called the Reserve Bank of India—to separate currency and credit control from the Government.
11ID: GK-BANK-00577
easyCommercial Banks, Payment Banks & SFBs
Who was serving as the Governor of the Reserve Bank of India when 14 major commercial banks were nationalised on July 19, 1969?
Verified Explanation
Lakshmi Kant (L.K.) Jha served as the 8th Governor of the Reserve Bank of India from July 1967 to May 1970, presiding over the central bank during the landmark first wave of bank nationalisation on July 19, 1969.
12ID: GK-BANK-00033
mediumRBI Functions, Repo Rates & Monetary Policy
Under Section 24 of the RBI Act, 1934, what is the maximum denomination of banknote that the Reserve Bank of India is legally empowered to issue?
Verified Explanation
Under Section 24 of the Reserve Bank of India Act, 1934, bank notes may be issued in denominations not exceeding ten thousand rupees (₹10,000).
13ID: GK-BANK-00064
easyHistory of Indian Banking & Nationalisation
Who served as the first Indian Governor of the Reserve Bank of India, appointed in 1943?
Verified Explanation
Sir Chintaman Dwarakanath Deshmukh (C. D. Deshmukh) was the first Indian to be appointed as Governor of the Reserve Bank of India in 1943, succeeding Sir James Braid Taylor.
14ID: GK-BANK-00093
hardHistory of Indian Banking & Nationalisation
Who is the only personality in Indian history to have served as both the Governor of the Reserve Bank of India and later as the Prime Minister of India?
Verified Explanation
Dr. Manmohan Singh served as the 15th Governor of the Reserve Bank of India from 1982 to 1985, Union Finance Minister from 1991 to 1996, and later as the Prime Minister of India from 2004 to 2014.
15ID: GK-BANK-00161
mediumHistory of Indian Banking & Nationalisation
Which entity was established in 2022 as a wholly owned subsidiary of the Reserve Bank of India to promote technology innovation and fintech ecosystem development in Bengaluru?
Verified Explanation
The Reserve Bank Innovation Hub (RBIH) was incorporated as a Section 8 company under the Companies Act 2013 with an initial capital contribution of ₹100 crore by the RBI to foster financial innovation.
16ID: GK-BANK-00185
easyRBI Functions, Repo Rates & Monetary Policy
What is the primary objective of the centralized web portal 'UDGAM' launched by the Reserve Bank of India in August 2023?
Verified Explanation
UDGAM (Unclaimed Deposits - Gateway to Access inforMation) is a centralized web portal developed by the Reserve Bank of India to facilitate registered users to search and claim unclaimed deposits/accounts across multiple banks.
17ID: GK-BANK-00216
mediumRBI Functions, Repo Rates & Monetary Policy
Under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS, 2021), who functions as the designated Appellate Authority against the decisions of the Banking Ombudsman?
Verified Explanation
Under Clause 17 of RB-IOS 2021, the Appellate Authority is the Executive Director in-charge of the Consumer Education and Protection Department at the Reserve Bank of India.
18ID: GK-BANK-00248
easyRBI Functions, Repo Rates & Monetary Policy
What is the full expansion of the acronym 'NEFT', the electronic funds transfer system operated 24x7x365 by the Reserve Bank of India?
Verified Explanation
NEFT stands for National Electronic Funds Transfer, a nationwide centralized retail payment system maintained and operated round-the-clock by the Reserve Bank of India.
19ID: GK-BANK-00254
easyRBI Functions, Repo Rates & Monetary Policy
Under Section 28 of the Reserve Bank of India Act, 1934, which set of regulations framed by the RBI governs the refund and exchange of soiled, mutilated, and imperfect banknotes across bank branches?
Verified Explanation
The Reserve Bank of India (Note Refund) Rules, framed under Section 28 of the RBI Act, 1934, prescribe the terms and conditions under which the value of mutilated, torn, or imperfect banknotes may be refunded as of right to the public.
20ID: GK-BANK-00285
hardHistory of Indian Banking & Nationalisation
Under the State Bank of India Act, 1955, what minimum percentage of the issued capital of State Bank of India was statutorily mandated to be held by the Reserve Bank of India before the transfer of ownership to the Government in 2007?
Verified Explanation
Under the original Section 5(2) of the SBI Act, 1955, the Reserve Bank was required to hold not less than 55% of the issued capital of SBI at all times, until June 2007 when the Government of India purchased RBI's entire 59.73% stake.
21ID: GK-BANK-00402
easyHistory of Indian Banking & Nationalisation
On which date was the Reserve Bank of India nationalised and transferred into complete public ownership under the Reserve Bank (Transfer to Public Ownership) Act, 1948?
Verified Explanation
RBI was nationalised with effect from 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948, compensating private shareholders and becoming state-owned.
22ID: GK-BANK-00426
easyRBI Functions, Repo Rates & Monetary Policy
What is the maximum number of Deputy Governors that can be appointed to the Reserve Bank of India under Section 8(1)(a) of the RBI Act, 1934?
Verified Explanation
Section 8(1)(a) of the Reserve Bank of India Act, 1934 provides that the Central Board of Directors shall include a Governor and not more than four Deputy Governors appointed by the Central Government.
23ID: GK-BANK-00428
easyCommercial Banks, Payment Banks & SFBs
What interest rate does the Reserve Bank of India pay to commercial banks on the cash reserves maintained under the Cash Reserve Ratio (CRR)?
Verified Explanation
Following the amendment to the RBI Act in 2006, the Reserve Bank of India does not pay any interest to scheduled commercial banks on the cash balances maintained with it under CRR.
24ID: GK-BANK-00441
mediumRBI Functions, Repo Rates & Monetary Policy
Under the RBI's Reserve Bank - Integrated Ombudsman Scheme, 2021 (RB-IOS), which earlier separate ombudsman schemes were unified into a single window mechanism?
Verified Explanation
The Reserve Bank - Integrated Ombudsman Scheme, 2021 integrated three erstwhile schemes: (1) Banking Ombudsman Scheme, 2006, (2) Ombudsman Scheme for NBFCs, 2018, and (3) Ombudsman Scheme for Digital Transactions, 2019 into 'One Nation One Ombudsman'.
25ID: GK-BANK-00460
easyHistory of Indian Banking & Nationalisation
On which date was the Reserve Bank of India nationalised under the Reserve Bank (Transfer to Public Ownership) Act, 1948?
Verified Explanation
The Reserve Bank of India, which was initially established as a private shareholders' bank, was nationalised and transformed into a state-owned institution on January 1, 1949.