Question

As per the RBI Act, $1934$, the following functions are described as the functions of a Central Bank:
i) Banking functions
ii) Advisory functions
iii) Supervisory functions
iv) Promotional functions
Identify the correct combinations.

• A. (i), (iii) and (iv)
• B. (i), (ii) and (iv)
• C. (ii), (iii) and (iv)
• D. Only (i) and (iii)

Answer 1

The correct option is C (ii), (iii) and (iv)

The Reserve Bank of India was set up under the RBI Act, 1934. The RBI, then, started operating as the Central Bank of the country on 1${}^{st}$ April, 1935. The Central Bank was expected to perform the functions of:

• Controller of currency
• Advisory function
• Promotional function
• Supervisory functions
• Banker to the government and commercial bank

• Foreign exchange management function.