Question

The committee recommended the establishment of a Central Bank in India

• A. Hilton Young Commission
• B. Gadgil Committee
• C. Tarapore Committee
• D. Rangarajan Committee

Answer 1

Answer:

A. Hilton Young Commission

• 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.