BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Granting licenses to commercial banks for opening branches in rural areas
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Accepting deposits from the public
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Regulating foreign exchange business
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Acting as note issuing authority, bankers’ bank and banker to the government
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Detailed explanation-1: -The basic functions of the RBI are the issuance of currency, to sustain monetary stability in India, to operate the currency, and maintain the country’s credit system.
Detailed explanation-2: -The Reserve Bank of India is the central Bank of India entrusted with the multidimensional role. It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country.
Detailed explanation-3: -The RBI was established by the RBI Act 1934, which went into force on April 1, 1935. The RBI’s primary functions include acting as a banker’s bank, a custodian of foreign reserves, a credit controller, and overseeing the printing and circulation of currency notes.
Detailed explanation-4: -In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union.
Detailed explanation-5: -Issuing of coins is not a function of the Central Bank.