Question

Which of the following tasks could the RBI do in 1935?

• A. The RBI had the right to change the rules and regulations of the Constitution.
• B. The RBI had the right to print money/issue currency notes.
• C. The RBI had the right to pass bills on its own.
• D. The RBI could design the currency notes of India.

Answer 1

Answer: (B), (D)

The RBI could design the currency notes of India.

The Reserve Bank of India (RBI) is the central bank of India and is in control of all banking activities. The jurisdiction of the RBI is limited to that of India, and it cannot make decisions for other nations. The RBI has various functions like controlling inflation through monetary policies, suppling money to other banks and supervising their functions, managing the finances of the government, and acting as the custodian of foreign exchange reserves.