Like Legal Law

Reserve Bank of India Act, 1934  1. Introduction The Reserve Bank of India Act, 1934 is a very important law in India which created the Reserve Bank of India (RBI) . The RBI is the central bank of India , which controls the money system of the country, regulates banks, and maintains financial stability. It started functioning in 1935 . (A) Evolution of Reserve Bank of India 1. Background (Before RBI) Before RBI was established: India had no central bank Currency system was controlled by the British Government Banking system was unorganized Economic instability was common 👉 There was a strong need for a central authority to control money and banking. 2. Hilton Young Commission (1926) Also known as the Royal Commission on Indian Currency and Finance Suggested the creation of a central bank for India 👉 This was the foundation of RBI idea. 3. Formation of RBI (1934 Act) RBI was established under the Reserve Bank of India Act, 1934 Started working on 1 Apr...