Question

Bank Draft is not issued by ............... .

• A. Private Sector Banks
• B. Regional Rural Banks
• C. Public Sector Banks
• D. Reserve Bank of India

Hint:

Remember: RBI regulates banks — it doesn’t issue drafts like commercial banks do.

Answer 1

The Correct Option is D

A Bank Draft is a negotiable instrument issued by a bank instructing another bank or branch to pay a specified sum of money to a third party.
Commercial banks, whether private, public, or regional rural banks, issue bank drafts to customers as a secure payment method.
It acts like a cheque but is more trusted because the payment is guaranteed by the issuing bank.
However, the Reserve Bank of India (RBI) does not deal directly with the public for routine banking services like issuing drafts or cheques.
The RBI’s role is to regulate and supervise the country’s banking system, manage currency, and implement monetary policy — not to perform commercial banking services for the general public.
Therefore, the correct answer is option (D) Reserve Bank of India.