Indian Banking System & RBI Quiz

Indian Banking System

• The Reserve Bank of India (RBI) is at the apex level of the Indian banking system.

Reserve Bank of India (RBI)

• The RBI was formed in 1935.
• The RBI performs various functions, including:
  • Regulating and supervising the banking system
  • Maintaining the economic stability of the country
  • Managing the foreign exchange
  • Acting as a banker to the government
  • Maintaining the monetary policy
• The original role of the RBI was to act as a banker and debt manager to the government, and to manage the exchange rate and foreign exchange.

Cooperative Societies

• There are different types of banks in the Indian banking system, including cooperative banks.
• The main principle of cooperation is autonomy, with other principles including voluntary and open membership, democratic member control, and concern for community.
• Mutual aid is NOT a principle of cooperation.
• Anyone can become a member of a cooperative, as long as they have a common interest or goal.
• The main purpose of a cooperative society is to serve the needs of its members, and to provide economic and social benefits to them.
• A cooperative is considered autonomous when it is free from external control and is self-governing.
• A cooperative is defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Test your knowledge about the Indian Banking System and the Reserve Bank of India (RBI) in this informative quiz. Learn about the various components of the banking system in India and the history of the RBI.