(2) The Reserve Bank of India(RBI) was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934. Following India’s independence in 1947,the RBI was nationalised in the year 1949. Sir Osborn Smith (1935-1937) was the first Governor of RBI, followed by Sir James Taylor (1937-1943).