Which central bank was established in India in 1935?

The Reserve Bank of India was established in 1935 as India’s central bank.

The bank began operations on 1 April 1935 under the Reserve Bank of India Act, 1934. Its creation followed recommendations from the Hilton Young Commission, which had examined India’s monetary and financial arrangements under British rule.

The Reserve Bank initially had its headquarters in Calcutta, now Kolkata, before moving permanently to Bombay, now Mumbai, in 1937. It was privately owned at first and was nationalized in 1949, after India became independent.

Its responsibilities include issuing currency, managing monetary policy, regulating banks, and overseeing important parts of the financial system. The Reserve Bank is distinct from the State Bank of India, which is a commercial bank rather than the country’s monetary authority.