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Question

What was the primary purpose of the Babington-Smith Committee, appointed in 1919 ?

The correct answer is
To study the impact of the war on Indian exchange, currency system, and note issue practices

Babington-Smith Committee Purpose (1919)

The Babington-Smith Committee was established in British India in the year 1919. Its appointment was a direct consequence of the significant economic shifts experienced during and immediately after World War I. The committee's primary objective was to conduct a thorough examination of the Indian financial system in light of these wartime changes.

Detailed Analysis of Committee Objectives

The central task assigned to the Babington-Smith Committee was to study the effects of the war on key aspects of India's economy. Specifically, its focus included:

  • Investigating the impact on India's exchange rate mechanisms.
  • Examining the prevailing conditions and practices within the Indian currency system.
  • Reviewing the procedures and policies related to Indian note issue practices.

This focus was critical for addressing economic instability and planning future financial policies after the disruption caused by the war.

Evaluation of Provided Options

Let's analyze the given options in the context of the Babington-Smith Committee's mandate:

  • Option 1: To investigate British excesses done under the Rowlatt Act
    The Rowlatt Act (1919) primarily dealt with political dissent and civil liberties. Investigations into excesses related to this act were handled by different bodies, such as the Hunter Committee. This option does not align with the financial and currency focus of the Babington-Smith Committee.
  • Option 2: To study the impact of the war on Indian exchange, currency system, and note issue practices
    This option accurately reflects the historical mandate and primary purpose of the Babington-Smith Committee. The committee was specifically tasked with assessing how World War I affected India's financial structure, including its currency, exchange rates, and the issuance of banknotes.
  • Option 3: To draft a new education policy
    Educational reforms in India were addressed by separate commissions and committees. For instance, the Sadler Commission (1917) focused on university education. The Babington-Smith Committee was not concerned with education policy.
  • Option 4: To look into the causes of famine, formulate general principles and suggest measures of preventive and protective character
    Famine relief and prevention were recurring issues addressed by dedicated Famine Commissions in British India (e.g., in 1880, 1898, 1901). The Babington-Smith Committee's scope was financial, not agricultural or famine-related.

Therefore, the primary purpose of the Babington-Smith Committee appointed in 1919 was to analyze the war's impact on India's exchange, currency, and note issuance systems.

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