Question

Consider the following statements regarding Reserve Bank of India?
1. It is a banker to the Central Government.
2. It formulates and administers monetary policy.
3. It acts as an agent of the Government in respect of India’s membership of IMF.
4. It handles the borrowing programmes of government of India.
Which of the above statement(s) is/are correct?

• A. Only 1 and 2
• B. Only 2, 3 and 4
• C. All of the above
• D. Only 3 and 4

Answer 1

The correct option is C All of the above

Explanation: Functions of RBI are —
- Banker to the Central Government.
- Bankers to the bank.
- Formulates Monetary Policy.
- Custodian of foreign exchange.
- Issuer of currency.
- Banker, agent and financial adviser to the State.