The correct answer is Royal Commission. The Reserve Bank of India was set up on the basis of the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission. The Reserve Bank of India was established following the Reserve Bank of India Act of 1934. After that, RBI started its operations on 1 April 1935. Headquarters of RBI- Mumbai. The nationalization of RBI took place in 1949 and from January 1, 1949, RBI started working as a government-owned bank. First Governor: Sir Osborne SmithFirst Indian Governor: C. D. DeshmukhCurrent Governor: Shaktikanta DasAdditional InformationThe main functions of RBI are:Note issuing organization and determine monetary policy, RBI controls the credit operations of banks through quantitative and qualitative tools,Holds the cash reserves of all the scheduled banks,Controls the banking system through the system of licensing,Acts as the lender of the last resort