Which of the following is not a function of RBI?a)Banker to government...
Introduction:
The Reserve Bank of India (RBI) is the central banking institution of India and is responsible for maintaining monetary stability, regulating the financial system, and ensuring the smooth functioning of the payment system. It was established on April 1, 1935, under the Reserve Bank of India Act, 1934. The RBI performs various functions to fulfill its objectives.
Explanation:
The correct answer is option 'D' - None of the above. This means that all the options given are functions of the RBI. Let's discuss each function in detail:
1. Banker to Government:
The RBI acts as a banker, agent, and advisor to the Government of India and the state governments. It manages the government's banking transactions, holds their cash balances, and provides short-term loans to meet any temporary mismatches in their receipts and payments. The RBI also manages the issue of government securities and acts as a custodian of the government's cash, gold, and foreign exchange reserves.
2. Regulation of Foreign Exchange:
The RBI is responsible for the regulation and supervision of the foreign exchange market in India. It formulates and implements policies to maintain the stability of the exchange rate and the balance of payments. The RBI controls the movement of capital in and out of the country, manages the foreign exchange reserves, and ensures compliance with foreign exchange laws and regulations.
3. Collection and Publication of Data:
The RBI collects, compiles, and publishes various economic and financial data. It collects data on money supply, interest rates, inflation, foreign exchange reserves, balance of payments, etc. This data is used for policy formulation, research, and analysis by the RBI, government, and other stakeholders. The RBI also publishes reports and bulletins on various aspects of the Indian economy.
Conclusion:
The Reserve Bank of India performs a wide range of functions to maintain monetary stability, regulate the financial system, and ensure the smooth functioning of the payment system in India. It acts as a banker to the government, regulates foreign exchange, and collects and publishes economic and financial data. Therefore, the correct answer is option 'D' - None of the above.
Which of the following is not a function of RBI?a)Banker to government...
RBI performs central banking functions as well as development and promotional functions.
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