Question

Payment of interest on public debt is handled by RBI as:

• A. Banker’s bank
• B. Banker to Government
• C. Credit controller
• D. Custodian of foreign exchange

Answer 1

Answer:

B. Banker to Government

RBI manages government accounts, including borrowing, repayment, and payment of interest on public debt. It also issues government securities and advises the government on financial matters, fulfilling its role as the government’s banker.