Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary role of the RBI in India?
What is the primary role of the RBI in India?
- To conduct consolidated supervision of the financial sector (correct)
- To manage foreign exchange reserves exclusively
- To regulate the stock market
- To issue currency notes and coins only
When was the Reserve Bank of India established?
When was the Reserve Bank of India established?
- April 1, 1947
- April 1, 1925
- April 1, 1935 (correct)
- April 1, 1934
Which of the following entities does the RBI supervise?
Which of the following entities does the RBI supervise?
- Only financial institutions
- Only commercial banks
- Both commercial and non-banking finance firms
- All banks and financial institutions, including non-banking finance firms (correct)
Under which act was the RBI established?
Under which act was the RBI established?
Signup and view all the answers
What type of institutions does the RBI include in its consolidated supervision?
What type of institutions does the RBI include in its consolidated supervision?
Signup and view all the answers
Study Notes
Reserve Bank of India (RBI)
- Established on April 1, 1935, under the RBI Act, 1934.
- Acts as the central bank of India, overseeing the country's monetary policy and financial stability.
Key Roles and Functions
- Supervises all banking operations in India, ensuring compliance and risk management among banks.
- Conducts consolidated supervision of the financial sector, which includes:
- Commercial banks
- Financial institutions
- Non-banking finance firms
- Plays a critical role in maintaining public confidence in the banking system and financial stability.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz delves into the role and significance of the Reserve Bank of India (RBI), established in 1935. It covers the RBI's functions, including its supervision of financial institutions and contribution to the stability of India's financial sector.
