Question

Which of the following is not the function of the Reserve Bank of India ?

• A. Acting as banker to the Government
• B. Keeping of Foreign Exchange Reserve
• C. Regulating the depositories in India
• D. Regulating credit in the country

Answer 1

Answer:

C. Regulating the depositories in India

Reserve Bank of India was set up in 1935, Since then it has been looking after functions which include regulation of credit, regulation of foreign exchange, banker to the government and commercial banks and states, issuing of notes and coins and lender of last resort. Note: Government of India through its fiscal policies, manages the fiscal deficit according to the FRBM Act, 2003. State governments have their respective acts to manage their fiscal deficits.