Question

Which of the following is/are the reason(s) due to which the Reserve Bank of India is known as the 'Mother of banks'?

• A. Makes sure other banks follow its policies
• B. Controls the money supply by manipulating the lending rates in the market
• C. Profit-making institutions that do business only to make profits
• D. Acts as the supervisor and regulating authority of other banks

Answer 1

Answer: (A), (B), (D)

Acts as the supervisor and regulating authority of other banks

The RBI acts as the bankers' bank, bank of the government, formulates policies, etc.