Question

Which of the following rights and responsibilities does the RBI have?

• A. To print and circulate money in India
• B. To provide finance to the banks and the Government of India
• C. To accept deposits and give loans
• D. To manage foreign currency reserves

Answer 1

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

To manage foreign currency reserves

The Reserve Bank of India (RBI) is the central bank of India and controls all banking activities. It is the sole authority to print and circulate money in India. It regulates the banking functions of all the banks in India. It serves as the banker's bank by supplying money to the banks. It also it manages the finances of the government. Moreover, it is the sole custodian of the foreign currency reserves in India.