Question

As the Banker to the Bank, Reserve Bank of India performs all functions except ........

• A. Purchase and sale of securities on behalf of the general public
• B. Maintaining current account for Commercial Banks
• C. Clearing and settlement of Interbank transactions
• D. Facilitating governmental transactions

Hint:

Understand the functions of central banks like the RBI, especially their role as the banker to the government and banks.

Answer 1

The Correct Option is A

The Reserve Bank of India (RBI) does not engage in the purchase and sale of securities on behalf of the general public. This is typically the responsibility of the government or commercial banks, while the RBI manages monetary policy, currency issuance, and the banking system.