Question

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

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

Hint:

The RBI acts as the central bank in India, overseeing monetary policy and other financial regulations, but it does not deal with securities for the general public.

Answer 1

The Correct Option is A

The Reserve Bank of India does not directly engage in the purchase and sale of securities on behalf of the general public. This function is typically carried out by commercial entities or the government. The RBI does, however, facilitate the sale and purchase of government securities to regulate money supply.