Question

Imperial Bank of India was established on

• A. August 15, 1947
• B. April 1, 1935
• C. January 27, 1921
• D. July 19, 1969

Answer 1

Answer:

C. January 27, 1921

• Imperial Bank of India was established in 27-1-1921 by way of amalgamating three presidency banks of Madras, Bengal and Bombay.
• Imperial Bank performed mainly two important functions of Central Bank such as Banker to the Government and Bankers Bank.
• Other important central banking functions were done by central government including currency regulation, and control of foreign exchange
• But it was not a satisfactory arrangement
• Hilton Young Commission (Royal Commission on Indian Currency and Finance) appointed by British Government in 1925 and the committee
• The committee recommended the establishment of a Central Bank in India and the commission suggested the name Reserve Bank of India.