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?

Statement 1: The Reserve Bank of India (RBI) was nationalised on January 1, 1949, under the Reserve Bank (Transfer to Public Ownership) Act, 1948. The date 26 January, 1950, is incorrect. Therefore, statement 1 is incorrect. Statement 2: The borrowing programme of the Government of India is primarily managed by the Department of Economic Affairs (DEA) within the Ministry of Finance, which is responsible for public debt management. However, the Department of Expenditure plays a crucial role in overall fiscal management by controlling government spending and approving expenditure proposals. Since government borrowing is undertaken to finance the fiscal deficit arising from expenditure, the Department of Expenditure's role in managing and approving spending directly influences and determines the scale of the borrowing programme. In this broader context of fiscal management and determining the need for funds, statement 2 can be considered correct. Given that statement 1 is incorrect and statement 2 is considered correct under a broad interpretation of its role, option B is the correct answer.