Question

Under which sections of the RBI Act, 1934 are RBI’s roles as banker, financial agent, and financial advisor defined?

• A. Issue currency notes only
• B. Charge high fees for banking services
• C. Hold government funds and provide banking services free of charge
• D. Provide loans to private banks

Answer 1

Answer:

C. Hold government funds and provide banking services free of charge

RBI maintains the accounts of the central and state governments, makes payments on their behalf, and manages public debt. These services are statutory obligations and are provided without charging fees, ensuring smooth functioning of government financial operations.