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Consider the following statements regarding the main functions of Reserve Bank of India (RBI):
- It formulates, implements and monitors the monetary policy.
- It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India.
- It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
How many of the above statements are correct?
- a)Only One
- b)Only two
- c)All three
- d)None
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding the main functions of Rese...
- Context: The Prime Minister addressed the opening ceremony of RBI@90 in Mumbai, marking 90 years of the Reserve Bank of India (RBI).
- Monetary Authority:
- Formulates, implements and monitors the monetary policy.
- Objective: maintaining price stability while keeping in mind the objective of growth.
- Regulator and supervisor of the financial system:
- Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
- Objective: maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public.
- Manager of Foreign Exchange
- Manages the Foreign Exchange Management Act, 1999.
- Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
- Issuer of currency:
- Issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India.
- Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
- Developmental role
- Performs a wide range of promotional functions to support national objectives.
- Regulator and Supervisor of Payment and Settlement Systems:
- Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
- Objective: maintain public confidence in payment and settlement system
- Related Functions
- Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
- Banker to banks: maintains banking accounts of all scheduled banks.
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Consider the following statements regarding the main functions of Rese...
Functions of Reserve Bank of India (RBI)
Statement 1: It formulates, implements and monitors the monetary policy.
- This statement is correct. The RBI is responsible for formulating the monetary policy of India, which involves regulating the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity in the economy. It also implements and monitors the effectiveness of the monetary policy measures.
Statement 2: It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by the Government of India.
- This statement is correct. The RBI has the sole authority to issue currency notes in India. It is responsible for maintaining the supply of currency in the economy, exchanging old and damaged notes, and destroying unfit notes. Additionally, the RBI also puts into circulation coins minted by the Government of India.
Statement 3: It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
- This statement is correct. The RBI plays a crucial role in introducing and upgrading safe and efficient modes of payment systems in the country. This includes promoting digital transactions, enhancing the security and efficiency of payment systems, and ensuring that the public has access to convenient and reliable payment options.
Therefore, all three statements are correct in describing the main functions of the Reserve Bank of India (RBI).
Statement 1: It formulates, implements and monitors the monetary policy.
- This statement is correct. The RBI is responsible for formulating the monetary policy of India, which involves regulating the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity in the economy. It also implements and monitors the effectiveness of the monetary policy measures.
Statement 2: It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by the Government of India.
- This statement is correct. The RBI has the sole authority to issue currency notes in India. It is responsible for maintaining the supply of currency in the economy, exchanging old and damaged notes, and destroying unfit notes. Additionally, the RBI also puts into circulation coins minted by the Government of India.
Statement 3: It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
- This statement is correct. The RBI plays a crucial role in introducing and upgrading safe and efficient modes of payment systems in the country. This includes promoting digital transactions, enhancing the security and efficiency of payment systems, and ensuring that the public has access to convenient and reliable payment options.
Therefore, all three statements are correct in describing the main functions of the Reserve Bank of India (RBI).
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Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the main functions of Reserve Bank of India (RBI): It formulates, implements and monitors the monetary policy. It issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India. It introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.How many of the above statements are correct?a)Only Oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
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