The Reserve Bank was constituted under which Section of RBI Act
ASection 4
BSection 7
CSection 12
DSection 3
Answer:
D. Section 3
Read Explanation:
- In 1931, the Central Banking Enquiry Committee also recommended to start a Central Bank.
- As per this, a bill was introduced in Legislative Assembly called the Reserve Bank of India Bill in September 8, 1933.
- The Assembly Passed the RBI Act in 6th March, 1934 (Act II of 1934)
- RBI came into force (commenced its business) on 1st April, 1935 by taking over the central banking function of Imperial bank of India
- The Reserve Bank was constituted under Section 3 of RBI Act.
- The Central Govt. holds the whole capital of RBI.
- First headquarters is at Kolkata (1935-37)
- In 1937 headquarters moved to Mumbai
- RBI was formed as a shareholder's bank with an initial capital of 5 crore divided into 5 Lakh shares of Rs.100 each.
- This 5 lakh shares was jointly subscribed by Central Government and Private Shareholders.