Question

RBI acts as a banker to the government by:

• A. Issuing licenses to banks
• B. Managing government accounts
• C. Supervising commercial banks
• D. Promoting rural banking

Answer 1

Answer:

B. Managing government accounts

RBI maintains the accounts of the central and state governments, makes payments on their behalf, and helps in borrowing funds through issuing government securities. It also advises the government on financial and economic matters, fulfilling its role as the government’s banker.