Question
According to the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948, which led to the nationalization of the Reserve Bank of India, what happened to the shares in the capital of the Bank?Solution
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.
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