RBI Functions — Set 3
Banking · RBI के कार्य · Questions 21–30 of 80
Which function of the RBI is known as 'Manager of Public Debt'?
Correct Answer: A. Managing the borrowing program of the government
The RBI manages the government's borrowing by issuing treasury bills and dated securities. It ensures that the government can raise necessary funds from the market at a reasonable cost. This role is essential for financing the fiscal deficit of the country.
The 'Minimum Reserve System' followed by the RBI for issuing currency requires keeping a minimum reserve of how much?
Correct Answer: B. Rs. 200 Crore
The RBI follows the Minimum Reserve System, where it must maintain assets worth at least Rs. 200 Crore. Of this, at least Rs. 115 Crore must be in gold and the rest in foreign securities. This system allows the RBI to issue currency based on the needs of the economy.
What is the current accounting year of the Reserve Bank of India?
Correct Answer: C. April to March
In 2021, the RBI changed its accounting year to align with the government's financial year, which is April to March. Previously, the RBI followed a July to June accounting cycle. This alignment helps in better coordination of financial data and budgeting.
The RBI acts as a 'Banker to Banks'. This means it provides which facility to commercial banks?
Correct Answer: D. Settlement of inter-bank transactions
As the banker to banks, the RBI maintains the accounts of all scheduled banks and facilitates the clearing and settlement of their transactions. It acts as a common centralized account holder for the banking system. This ensures the smooth functioning of the payment and settlement systems.
Which department of the RBI is responsible for the 'Issue of Currency'?
Correct Answer: A. Issue Department
The Issue Department of the RBI is specifically dedicated to the management and issuance of currency notes. It keeps its assets separate from the Banking Department to ensure currency stability. It is responsible for the design, distribution, and security of Indian banknotes.
The 'Ways and Means Advances' (WMA) is a facility provided by the RBI to whom?
Correct Answer: A. Governments to bridge temporary gaps in receipts and payments
WMA is a temporary loan facility provided by the RBI to the Central and State Governments. It helps them tide over temporary mismatches in their cash flows. These advances are repayable within three months and carry interest at the Repo rate.
Which of the following describes 'Moral Suasion' as used by the RBI?
Correct Answer: A. Persuading banks to follow specific policies through informal means
Moral suasion involves the RBI using persuasion and pressure on commercial banks to follow its guidelines or policy stances. It is a psychological tool of credit control rather than a legal compulsion. It is often exercised through meetings and circulars.
The 'Priority Sector Lending' (PSL) norms are regulated by the RBI to ensure credit flow to?
Correct Answer: D. Sectors like Agriculture, MSMEs, and Education
The RBI mandates that banks must lend a specific percentage of their credit to priority sectors to ensure balanced development. These sectors include agriculture, small businesses, social infrastructure, and low-income groups. For most commercial banks, the PSL target is 40% of their total credit.
Which subsidiary of the RBI is responsible for printing currency notes in India?
Correct Answer: B. BRBNMPL
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is a wholly-owned subsidiary of the RBI that prints banknotes. It operates two printing presses located in Mysuru and Salboni. The other two presses in India are owned by the Central Government.
The RBI regulates 'NBFCs'. What does NBFC stand for?
Correct Answer: C. Non-Banking Financial Company
Non-Banking Financial Companies (NBFCs) provide various banking services but do not hold a full banking license. The RBI regulates them to ensure financial stability and protect depositors' interests. They are important for credit delivery to underserved segments of the population.