Question

Which of the following functions are performed by the Reserve Bank of India?

• A. Acts as the banker's bank
• B. Issuing Kisan Vikaspatra
• C. Issuing postal insurance
• D. Formulating monetary policy

Answer 1

Answer: (A), (D)

Formulating monetary policy

The Reserve Bank of India also acts as the supervisor and regulating authority of other banks. It lends money to other banks in case of emergencies. So, it is also called the banker's bank. It is the apex bank that acts as the bank of the government. It also formulates a policy called monetary policy.