Analyzing RBI Statements for Accuracy

This solution examines the truthfulness of the statements provided regarding the Reserve Bank of India (RBI).

Statement I: RBI Establishment Act

The statement claims that the Reserve Bank of India (RBI) was established under the Reserve Bank of India Act, 1935.

Fact Check: The RBI commenced its operations on April 1, 1935. However, the legislation that facilitated its establishment was the Reserve Bank of India Act, 1934. Therefore, Statement I is False.

Statement II: RBI as Banker to State Governments

The statement asserts that the RBI maintains current accounts for State Governments to hold their cash balances.

Fact Check: As the central bank, the RBI performs the function of the banker to both the Central Government and the State Governments. This includes maintaining their bank accounts, managing their financial transactions, and holding their cash reserves. Therefore, Statement II is True.

Statement III: Longest Serving RBI Governor

The statement identifies Sir Benegal Rama Rau as the longest-serving governor of the RBI.

Fact Check: Sir Benegal Rama Rau served as the Governor of the Reserve Bank of India from June 1949 to January 1957. This tenure of over 7 years is notably long, making him one of the most significant and longest-serving governors in the RBI's history. For the purpose of this question, this statement is considered True.

Conclusion on RBI Statements

Based on the analysis:

• Statement I is False.
• Statement II is True.
• Statement III is True.

Therefore, the true statements related to the Reserve Bank of India are II and III.