In which year was the Reserve Bank of India (RBI) nationalised as the central bank of independent India?

Introduction / Context:
This question tests your understanding of the historical development of India's central banking system. The Reserve Bank of India was originally established as a privately owned institution during the British period and was later nationalised after India gained independence. Knowing the year of nationalisation is a staple fact in banking awareness, economic history, and general studies for competitive examinations.

Given Data / Assumptions:

• The Reserve Bank of India was originally set up before independence.
• It was later taken over by the Government of India through nationalisation.
• The options for the year of nationalisation are 1939, 1949, 1959, and 1969.
• No additional numerical calculations are required, only factual recall.

Concept / Approach:
The Reserve Bank of India commenced operations in 1935 as a private shareholders' bank under the RBI Act, 1934. After independence, to align the central bank's objectives with national economic planning and public interest, the Government of India decided to nationalise it. This nationalisation took effect on 1 January 1949, making the RBI fully owned by the Government of India. Therefore, among the given options, 1949 is the correct year to mark.

Step-by-Step Solution:
Step 1: Remember that RBI was established in 1935, but that is the year of its establishment, not nationalisation. Step 2: Recall that nationalisation of RBI occurred after India's independence to bring the central bank under government control. Step 3: The specific year of nationalisation is 1949, with effect from 1 January 1949. Step 4: Check the options and confirm that 1949 is offered as one of the choices. Step 5: Select 1949 as the final answer.
Verification / Alternative check:
You can cross-check this by remembering that another major banking nationalisation event took place later in 1969, but that one concerned 14 large commercial banks, not the RBI itself. Knowing that 1969 is associated with commercial bank nationalisation helps you eliminate option 1969 and fix 1949 for the RBI. Similarly, 1939 and 1959 do not correspond to well-known landmark changes in RBI ownership, reinforcing that 1949 is correct.

Why Other Options Are Wrong:

• 1939: This is close to the year of establishment but does not match any major ownership change for RBI.
• 1959: There is no famous event of RBI nationalisation in this year. The nationalisation had already occurred in 1949.
• 1969: This year is associated with the nationalisation of major commercial banks, not the central bank itself.

Common Pitfalls:
Students sometimes confuse the establishment year (1935) and the nationalisation year (1949), or mix up RBI nationalisation with the 1969 nationalisation of commercial banks. Another common mistake is to choose 1969 simply because it is strongly associated with banking reforms, without carefully reading that the question is specifically about the Reserve Bank of India, not commercial banks.

Final Answer:
The Reserve Bank of India was nationalised and became a government-owned central bank in the year 1949.