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Which of the following functions of Reserve Bank of India are correct? I. Banker to Banks II. Currency Issuer

Which of the following functions of Reserve Bank of India are correct? I. Banker to Banks II. Currency Issuer Correct Answer Both I and II

The correct answer is Both I and II.

Key Points

  • The Reserve Bank of India (RBI) is the central bank of India.
  • It is regarded as bank of banks and was established on April 1, 1935.
  • Functions of the RBI are as follows:
    • Issuer of Currency
    • Banker to Government
    • Custodian of Cash Reserves of Commercial Banks
    • Controller of credit
    • Custodian of country's foreign reserves
    • Lender of last resort

 Thus, we can say that the Reserve Bank of India is the banker of the banks and issuer of the currency.

Related Questions

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4. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.
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3. Foreign Banks
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