Question

Which of the following functions is / are not carried out by the RBI?

• A. Printing currency notes except 1rupee note
• B. Issuing Government Bonds
• C. Banker to the Government
• D. None of the above

Answer 1

The correct option is B Issuing Government Bonds

A government bond is a debt instrument issued by the Central and State Governments of India. Issuance of such bonds occur when the issuing body (Central or State governments) faces a liquidity crisis and requires funds for the purpose of infrastructure development. Government bonds fall under the broad category of government securities (G-secs). Both the central and state government can issue government bonds, it is not done by RBI.