Q. Which of the following is not a function of the Reserve Bank of India?

Regulation of liquidity

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Regulation of Foreign Exchange

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Management of Fiscal Deficit

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Banker to the Centre and States

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Solution

The correct option is C
Management of Fiscal Deficit
Explanation: Reserve Bank of India was set up in 1935, Since then it has been looking after functions which include regulation of credit, regulation of foreign exchange, banker to the government and commercial banks and states, issuing of notes and coins and lender of last resort.

Note: Government of India through its fiscal policies, manages the fiscal deficit according to the FRBM Act, 2003. State governments have their respective acts to manage their fiscal deficits.

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Similar questions

Match the following events with the correct years in which they are established or launched

List-I	List-II
A. State Bank of India	$1$ . $1950$
B. Green Revolution	$2$ . $1955$
C. Bank Nationalisation	$3$ . $1966$
D. Foreign Exchange Regulation Act	$4$ . $1969$
	$5$ . $1973$

1.

1991

2.

Consider the following statements with reference to FEMA in India:

Choose the correct statement(s):

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