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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?
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?
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?
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?
What type of advances does RBI provide to central and state governments to manage short-term mismatches between revenue and expenditure?
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Which banks open current accounts with the RBI's Department of Government and Bank Accounts (DAD) to maintain stipulated reserves?
Which banks open current accounts with the RBI's Department of Government and Bank Accounts (DAD) to maintain stipulated reserves?
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What is the key role of the Reserve Bank of India concerning banking business of state governments?
What is the key role of the Reserve Bank of India concerning banking business of state governments?
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