Question : Which of the following is a function of the Reserve Bank of India (RBI)?
Option 1: Formulating monetary policy
Option 2: Issuing currency notes
Option 3: Regulating and supervising the functioning of banks
Option 4: All of the above
Correct Answer: All of the above
Solution : d). All of the above
The Reserve Bank of India (RBI) performs all of the functions listed. As the central bank of India, the RBI has several important functions, including:
Formulating monetary policy: The RBI is responsible for formulating and implementing monetary policy in India, which involves regulating the money supply, interest rates, and credit availability to maintain price stability and promote economic growth.
Issuing currency notes: The RBI has the authority to issue and regulate the supply of currency notes in India. It manages the circulation of currency, ensures an adequate supply of currency to meet the public's demand, and maintains the integrity of the currency.
Regulating and supervising the functioning of banks: The RBI acts as the regulator and supervisor of banks and financial institutions in India. It formulates regulations and guidelines to ensure the safety, soundness, and stability of the banking system. The RBI also conducts inspections, sets capital adequacy norms, and oversees compliance with various banking regulations.
Therefore, the correct answer is All of the above.
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