Question

What is the primary role of the RBI in relation to other banks in the country?

• A. Competing with them for customers.
• B. Providing necessary instructions and advice.
• C. Handling their retail banking operations.
• D. Managing their human resources.

Answer 1

Answer:

B. Providing necessary instructions and advice.

Some other key roles of RBI in relation to other banks include:

1. Acting as the banker's bank

2. Setting monetary policy

3. Maintaining cash reserve ratios

4. Providing banking licenses

5. Regulating and supervising banking operations