The proposal for setting up of the Federation of India did not materialize because the act proposed that federation could come into existence only if as many princely states (which had been given option to join or not to join) were entitled to one half of the states seats in the upper house of the federal legislature. Due to this, Central Government in India continued to be governed by the provision of the Act of 1919(Montague-Chelmsford Reforms).However, some parts of the GOI Act 1935 came into force for example : the Federal Bank (The Reserve Bank of India) and the Federal Court were established in 1935 and 1937 respectively. The other parts of the Act, particularly provincial Autonomy, came into force on 1st April 1937. The first elections under the Act were also held in 1937.