The central banking functions in India are performed by thebegin{enumerate}item Central Bank of Indiaitem Reserve Bank of Indiaitem State Bank of Indiaitem Punjab National Bankend{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The central banking functions in India are performed by the

A	1, 2 and 3
B	2
C	1
D	2 and 4

Explanation:

Detailed explanation-1: -The Reserve Bank of India (RBI) is India’s central banking institution, which controls the issuance and supply of the Indian rupee. Was this answer helpful?

Detailed explanation-2: -Since its inception, the Reserve Bank of India has undertaken the traditional central banking function of managing the government’s banking transactions.

Detailed explanation-3: -It has monopoly over the issue of bank-notes and monetary system of the country. These power and functions as to issue of bank notes and currency system are governed by the Reserve Bank of India Act, 1934. Besides it the Banking Regulation Act, 1949 also empowers certain power and Function of the Reserve Bank.

Detailed explanation-4: -It issues loans and advances to the government and does buying and selling of securities on behalf of government. It also advises the government to frame monetary policy of the country to control the credit creation and money market.

There is 1 question to complete.