RBI Functions — Set 4
Banking · RBI के कार्य · Questions 31–40 of 80
What is the 'Marginal Standing Facility' (MSF) rate usually compared to the Repo Rate?
Correct Answer: A. It is usually higher than the Repo Rate
The MSF rate is typically kept higher than the Repo rate by a fixed margin (spread). This serves as a penalty rate for banks when they borrow overnight emergency funds from the RBI. It acts as the upper bound of the policy interest rate corridor.
Which RBI publication provides a comprehensive annual review of the Indian economy and the bank's operations?
Correct Answer: D. RBI Annual Report
The RBI Annual Report is a statutory report presented to the Central Government. It covers the working of the RBI, the state of the economy, and the bank's financial accounts. It is usually released after the end of the accounting year.
The 'Banking Ombudsman Scheme' was introduced by the RBI to?
Correct Answer: A. Redress grievances of bank customers
The Banking Ombudsman Scheme is an inexpensive forum for customers to resolve complaints against deficiency in banking services. It was first introduced in 1995. The RBI recently integrated various schemes into one 'Unified Ombudsman Scheme'.
Who represents the RBI on the Board of Directors of the World Bank and IMF?
Correct Answer: D. The Governor of RBI
The RBI Governor acts as India's Alternate Governor on the Board of Governors of the International Monetary Fund (IMF). This role ensures India's participation in global financial policy-making. The Finance Minister is usually the Governor for India in these institutions.
Which of the following is the 'Main Objective' of the RBI's Monetary Policy according to the preamble of the RBI Act?
Correct Answer: C. To maintain price stability while keeping in mind the objective of growth
The primary objective of monetary policy is to maintain price stability, which means keeping inflation within a targeted range. At the same time, it must ensure adequate credit flow to productive sectors to support economic growth. This dual objective is a delicate balancing act for the RBI.
What is the 'Reverse Repo Rate'?
Correct Answer: B. The rate at which banks lend to RBI
The Reverse Repo Rate is the interest rate at which the RBI absorbs liquidity from commercial banks. It is the rate banks receive when they park their surplus funds with the RBI. An increase in this rate incentivizes banks to lend less to the market.
Which RBI body is responsible for the overall supervision of banks and financial institutions?
Correct Answer: A. Board for Financial Supervision (BFS)
The Board for Financial Supervision (BFS) was constituted in 1994 to exercise integrated supervision over the financial sector. It focuses on the health of commercial banks, NBFCs, and financial institutions. It is chaired by the Governor and assisted by Deputy Governors.
The RBI's power to inspect banks and demand information is granted by which act?
Correct Answer: C. Banking Regulation Act, 1949
The Banking Regulation Act, 1949, gives the RBI extensive powers to inspect the books and accounts of banks. This is a crucial part of the RBI's role as the regulator and supervisor of the financial system. Regular inspections help in detecting financial weaknesses and irregularities.
What is the minimum age to be appointed as the Governor of the RBI?
Correct Answer: A. There is no age specified in the RBI Act
The correct answer is 'There is no age specified in the RBI Act'. The RBI Act, 1934, does not specify a minimum or maximum age for the Governor or Deputy Governors. They are appointed by the Central Government based on their professional expertise and administrative experience. Typically, senior bureaucrats or eminent economists are chosen for this post.
Which of the following functions does the RBI perform for the 'Common Man'?
Correct Answer: C. Maintaining the value of money and protecting bank deposits
The RBI protects the common man by ensuring low inflation (maintaining the rupee's value) and providing a safe banking environment. It also oversees the DICGC, which insures bank deposits up to a certain limit. It does not deal directly with individuals for standard banking transactions.