The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India?

(A) India got its central bank in 1935.

(B) It is the custodian of the foreign exchange reserves of the economy.

(C) It controls the money supply of the country through various methods, like bank rate, open market operations etc.

(D) It also acts as a bank for the banking system.

Choose the correct answer from the options given below:

Option 1 -> Excludes statement (B) about foreign exchange reserves custodianship, which is incorrect as RBI does manage forex reserves.

Option 2 -> Excludes statement (C) about monetary policy control, which is incorrect as RBI does control money supply through various instruments.

Option 3 -> Includes all statements (A), (B), (C) and (D), which correctly represents all main characteristics of RBI.

Option 4 -> Excludes statement (A) about 1935 establishment, which is incorrect as RBI was indeed established in 1935.

Hence, Option 3: (A), (B), (C) and (D) -> All four statements accurately describe the main characteristics of the Reserve Bank of India. (A) RBI was established on April 1, 1935 under the RBI Act, 1934. (B) RBI acts as the custodian and manager of India's foreign exchange reserves. (C) RBI implements monetary policy through various instruments like repo rate, bank rate, CRR, SLR, and open market operations to control money supply. (D) RBI functions as the banker's bank, where commercial banks maintain accounts and can avail lending facilities. These are fundamental roles that define RBI as India's central banking institution. -> correct