Consider the following statements regarding Reserve Bank of India:
- It is a banker to the Central Government.
- It formulates and administers monetary policy.
- It acts as an agent of the Government in respect of India’s membership of IMF.
- It handles the borrowing programme of Government of India.
Which of these statements are correct?
- I and II
- II, III and IV
- I, II, III and IV
- III and IV
Explanation
Option (c) is correct
- All four statements are correct. Reserve Bank of India functions as the banker to the Central and State Governments, maintains their accounts, and provides temporary advances. It formulates and implements monetary policy, represents India in institutions such as the International Monetary Fund, and manages public debt along with government borrowing and securities operations on behalf of the Government.
