Consider the followingstatements 1 Reserve Bank of India was nationalized on 26 January 1950 2 The b...........

Indian Economy (Easy) Money and banking

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Consider the followingstatements:

1.Reserve Bank of India was nationalized on 26 January,1950

2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry ofFinance

Which of the statements given above is/are correct?

1only

2only

Both 1 and 2

neither 1 nor2

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Explanation:

The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation. The image is a newspaper clipping giving the views of Governor CD Deshmukh, prior to nationalisation.

the finance ministry is likely to set up a full-fledged independent public debt management agency by the end of next year to manage government borrowing programme that runs into lakhs of crore.
At present, the government debt, including market borrowings, is managed by the Reserve Bank of India.