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Central Bank

Which of the ...

Question

Which of the following is not the function of Reserve Bank of India?

A

Provide credit facility to the general public

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B

Keep government money in various account heads

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C

Frame monetary and credit policy

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D

All are RBI's functions

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Solution

The correct option is A Provide credit facility to the general public
RBI is also known as the banker's bank (as it lends to banks) and lender of last resort. It keeps government money in various account heads and frames monetary and credit policies. It also regulates the banking sector.
Providing credit to the general public is a job which is done by the commercial banks and not the RBI.

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