RBI Act and Functions Quiz
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Questions and Answers

What is the primary function of the Reserve Bank of India (RBI) as the banker to the Central Government?

  • Providing long-term loans to the central government for infrastructure projects
  • Undertaking banking business on behalf of various government departments (correct)
  • Acting as a regulatory authority for the banking sector
  • Handling currency issuance and circulation on behalf of the government

    • Which office of the RBI is crucial for the final compilation of Central/State Government accounts?

  • Regional Office in Delhi
  • Central Accounts Section in Mumbai
  • Central Accounts Section in Nagpur (correct)
  • Central Office in Kolkata

    • In what way does RBI act as the Bankers' Bank?

  • Facilitating the clearing of cheques and interbank transfers (correct)
  • Providing loans to commercial banks at a lower interest rate
  • Issuing currency notes to all banks in the country
  • Acting as a credit rating agency for banks

    • What type of advances does RBI provide to central and state governments to manage short-term mismatches between revenue and expenditure?

    <p>Ways and Means Advances (WMA)</p> Signup and view all the answers

    Which banks open current accounts with the RBI's Department of Government and Bank Accounts (DAD) to maintain stipulated reserves?

    <p>Commercial and state cooperative banks which are scheduled banks</p> Signup and view all the answers

    What is the key role of the Reserve Bank of India concerning banking business of state governments?

    <p>Undertaking the banking business of state governments</p> Signup and view all the answers

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