The Reserve Bank of India was set up on 1 April 1935 under the RBI Act 1934, on the recommendations of the Hilton Young Commission, and was nationalised in 1949. It regulates banks under the Banking Regulation Act 1949, issues currency and conducts monetary policy through its Monetary Policy Committee (created in 2016).
Established 1 April 1935.
Nationalised in 1949.
Quick check: The Reserve Bank of India was established on the recommendation of the:
Chelliah Committee
Hilton Young Commission
Raghuram Rajan Committee
Narasimham Committee
Answer: B.
1969 and 1980
Bank Nationalisation
Banks for the masses
On 19 July 1969 the government nationalised 14 major commercial banks by ordinance; the Supreme Court struck down the first law in R.C. Cooper (1970), and it was re-enacted. Six more banks were nationalised in 1980.
14 banks in 1969; 6 in 1980.
Quick check: How many banks were nationalised in 1969?
19
14
6
20
Answer: B.
2002
The SARFAESI Act, 2002
Enforcing security without courts
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 lets banks take possession of and sell secured assets of defaulting borrowers without going to court, after notice. It was upheld in Mardia Chemicals (2004).
Upheld in Mardia Chemicals (2004).
1988
Cheque Bounce: Section 138
A crime of dishonour
Section 138 of the Negotiable Instruments Act 1881, inserted in 1988, makes the dishonour of a cheque for insufficient funds a criminal offence, subject to notice. Cheque bounce cases account for a very large share of pending criminal cases in India, and the Supreme Court has repeatedly issued directions to speed them up.
Inserted in 1988.
Quick check: Dishonour of a cheque is an offence under which section of the Negotiable Instruments Act?
Section 13
Section 125
Section 420
Section 138
Answer: D.
2008
The LLP Act, 2008
Limited liability partnerships
The Limited Liability Partnership Act 2008 created a business form combining the flexibility of a partnership with the limited liability of a company. Many law and accounting firms are organised as LLPs.
21 more entries under this heading
The IL&FS Crisis · A shadow bank collapses
The Yes Bank Reconstruction · A bank rescue
The Jan Vishwas Act, 2023 · Decriminalising minor offences
Insider Trading · SEBI's regulations
Class Action Suits · Shareholders together
How Corporate Insolvency Works · The IBC process
The Companies Act, 1956 · Governed companies for more than half a century
Mandatory CSR · India was the first country to make CSR spending mandatory
One Person Company · A company with a single member
Woman Director Requirement · Listed and large companies must have at least one woman director
Demonetisation · ₹500 and ₹1,000 notes withdrawn overnight
Section 29A of the IBC · Bars defaulting promoters from bidding for their own companies
National Financial Reporting Authority · An independent regulator for auditors
Vijay Mallya: First Fugitive Economic Offender · The first person declared a fugitive economic offender
DHFL Insolvency · The first financial services company referred to insolvency
Bank Mergers · Public sector banks consolidated to 12
Withdrawal of Retrospective Tax · Ended the Vodafone and Cairn tax disputes
Pre-packaged Insolvency for MSMEs · A faster, debtor-led insolvency process
Hindenburg Report and the Adani Case · The Supreme Court declined to order an SIT
Jet Airways Liquidation · The Supreme Court ordered liquidation
Angel Tax Abolished · Relief for start-ups
PlusAll 26 entries, and every heading in the LibraryYours from ₹1,499, till CLAT 2028See Plus
