In Indian economic history, in which year was the Reserve Bank of India formally nationalised and brought under public ownership by the Government of India?

Introduction / Context:
The Reserve Bank of India is the central bank of the country and plays a crucial role in regulating the issue of currency, controlling credit and maintaining financial stability. Initially, the RBI was set up as a privately owned institution. Later, it was nationalised and brought under complete public ownership by the Government of India. Many competitive exams ask for the specific year in which this nationalisation took place, making this a classic factual question in banking awareness and Indian economic history.

Given Data / Assumptions:
- The Reserve Bank of India was established before nationalisation took place. - Nationalisation means transfer from private shareholding to public ownership by the government. - The options list four possible years between 1939 and 1969. - We must identify the correct year of RBI nationalisation.

Concept / Approach:
The key concept is to distinguish between the year RBI was established and the year it was nationalised. RBI began operations in 1935 as a privately held bank under the Reserve Bank of India Act of 1934. After India became independent, the government decided to take over the bank. Through the Reserve Bank of India (Transfer to Public Ownership) Act of 1948, the bank was nationalised with effect from 1 January 1949. Therefore, the correct year of nationalisation is 1949, not the earlier or later years provided in the options.

Step-by-Step Solution:
Step 1: Recall that RBI was established in 1935, which means 1939 is too early to represent nationalisation and refers to a pre independence period. Step 2: After independence in 1947, there was a push to bring major financial institutions under public control. Step 3: The Reserve Bank of India (Transfer to Public Ownership) Act was passed in 1948 and took effect on 1 January 1949. Step 4: This legal step formally converted RBI from a private shareholder bank into a fully government owned central bank. Step 5: Therefore, 1949 is the correct year of nationalisation among the options given.

Verification / Alternative check:
A simple verification is to note that 1969 is better known as the year of nationalisation of 14 major commercial banks in India, not the central bank itself. The year 1959 does not correspond to any famous milestone in RBI ownership, and 1939 predates independence. Standard banking awareness notes clearly state that RBI was nationalised on 1 January 1949. Exam solutions and authoritative sources on Indian banking history consistently repeat this date, which confirms that the correct year in the options is 1949.

Why Other Options Are Wrong:
1939: This year falls before Indian independence and well before the government decided to nationalise the central bank, so it cannot be the correct year of nationalisation.
1959: There is no widely recognised event of RBI nationalisation in this year; by then RBI was already under public ownership, making this option incorrect.
1969: This year relates to the nationalisation of major commercial banks, not the central bank itself, so it does not answer the question about the Reserve Bank of India nationalisation year.

Common Pitfalls:
One common confusion is between the establishment year of the RBI, which is 1935, and the nationalisation year, which is 1949, leading some learners to wrongly pick an early option like 1939. Another frequent mistake is to mix up the nationalisation of commercial banks in 1969 with the earlier nationalisation of the central bank. Learners also sometimes guess 1959 as a mid point without recalling any specific event. To avoid these mistakes, it is helpful to remember the clear chronological pair: launch of RBI in 1935 and nationalisation of RBI in 1949, followed later by bank nationalisation in 1969.

Final Answer:
The Reserve Bank of India was formally nationalised and brought under public ownership in the year 1949.