RBI's many functions- Banker to the Government and Banks, Bank of Issue and Credit

Q.  Which of the following is true about the functions performed by RBI?

(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit

- Published on 19 Oct 15

a. Both (i) and (ii)
b. Both (iii) and (iv)
c. All the above
d. None of the above

ANSWER: All the above
The Reserve Bank of India, as the central bank of the country, functions as the sole bank with the right of issuing paper notes, it acts as banker to the Government, it is the banker to other bank and it regulates the flow of credit.

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