BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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settlements of inter-bank transactions
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enables banks to maintain their accounts with RBI for statutory reserve requirements
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acts as the lender of last resort
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All of the above
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Detailed explanation-1: -Notes: As a banker of banks, RBI enables smooth and swift clearing and settlements of inter-bank transactions. It also provides efficient means of funds transfer for all banks. It enables banks to maintain their accounts with RBI for statutory reserve requirements and maintenance of transaction balances.
Detailed explanation-2: -Detailed Solution. The correct answer is the Lending of money to the public. The lending of money to the public is not the function of RBI. The Reserve Bank of India is India’s central bank and regulatory body under the jurisdiction of the Ministry of Finance, Government of India.
Detailed explanation-3: -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.