Which of the following are functions of the Reserve Bank of India RBI acting as Banker to Banks 1 nb...........

Indian Economy (CDS) Money and banking

Which of the following are functions of the Reserve Bank of India (RBI) acting as Banker to Banks?

1. Enabling banks to maintain their accounts with RBI for statutory reserve requirement.

2. Enabling settlement of interbank transfer of funds.

3. RBI provides short term loans and advances to banks.

4. Acting as lender of last resort.

Select the correct answer using the code given below:

1 only

1 and 2 only

1, 2 and 3 only

1, 2, 3 and 4

Statement 1, 2, 3 and 4 are correct.

Major Functions

Monetary Authority

Formulating and implementing the national monetary policy.
Maintaining price stability across all sectors while also keeping the objective of growth.

Regulatory and Supervisory

Set parameters for banks and financial operations within which banking and financial systems function.
Protect investors interest and provide economic and cost-effective banking to the public.

Foreign Exchange Management

Currency Issuer

Issues, exchanges or destroys currency and not fit for circulation.
Provides the public adequately with currency notes and coins and in good quality.

Developmental role

Promotes and performs promotional functions to support national banking and financial objectives.

Related Functions

Provides banking solutions to the central and the state governments and also acts as their banker.
Chief Banker to all banks: maintains banking accounts of all scheduled banks.