Multiple choice

Which of the following is not the function of the Reserve Bank of India?

  1. Acting as banker to the Government

  2. Keeping of Foreign Exchange Reserve

  3. Issuing of one rupee notes and coins

  4. Regulating credit in the

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Issuing of one rupee notes and coins is the function of the Government of India, not the RBI. The RBI handles currency notes above Rs. 1 (Rs. 2, 5, 10, etc.). The RBI does act as banker to the government, manages foreign exchange reserves, and regulates credit in the economy.

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