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 buy or sell securities for the public. Commercial entities or the government usually perform this role. However, the RBI does facilitate the trading of government securities to manage the money supply.