Consider the following statements: 1. Reserve Bank of India was nationalised on 26 January, 1950. 2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance. Which of the statements given above i

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Submitted by examrobotsa on

Q: 130 (IAS/2004)
Consider the following statements:
1. Reserve Bank of India was nationalised on 26 January, 1950.
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.
Which of the statements given above is/are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,58,111,39,43,29,58

keywords: 

{'borrowing programme': [0, 0, 2, 0], 'reserve bank': [1, 0, 3, 4], 'finance': [5, 2, 5, 15], 'expenditure': [2, 0, 2, 4], 'government': [5, 0, 0, 1], 'india': [8, 1, 7, 13]}

The question presents two statements about the Reserve Bank of India and asks which of them is correct. Option 4, which says that neither of the statements is correct, is identified as the right answer.

Statement 1 claims the Reserve Bank of India was nationalised on 26 January, 1950. However, the Reserve Bank of India was actually nationalized in the year 1949, not 1950 as suggested by the statement. Therefore, statement 1 is incorrect.

Statement 2 claims that the borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance. However, it`s the Debt Management Office, which is a part of the Department of Economic Affairs (also under the Ministry of Finance), that manages the borrowing programme of the Government of India, and not the Department of Expenditure. Hence, this statement is also incorrect.

Therefore, the correct answer is option 4, meaning that neither statement 1 nor statement 2 is correct.