Macro

Money & Banking

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which of the following is correct statement?

RBI act as banker to commercial banks & Central Bank

Central Bank creates credit in economy

All financial institutions are banking institutions

One rupee note and all coins are issued by the Ministry of Finance

✅ Correct Option: 4

In India, the one rupee note and all coins are issued by the Ministry of Finance (Government of India), while all other currency notes are issued by the RBI. Option 1 wrongly says RBI is banker to the Central Bank. Option 2 is wrong because commercial banks, not the central bank, create credit. Option 3 is false since not all financial institutions are banks.

Question 41

Which function of central Bank is refered to in the above paragraph.

Question 42

As a bankers' bank, what is the role played by RBI?

A. Custodian of cash reserves

B. Maintain Foreign Exchange Reserves

C. Currency Issue

D. Lender of last resort

E. Clearing house

Choose the correct answer from the options given below:

Question 43

How does RBI act as a supervisor to bank?

Question 44

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Which of the following is correct statement?

Solution

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