Which of the following are the sources of income for the Reserve Bank of India I Buying and selling ...........

Economic Affairs Money Supply and Monetary Policy

Which of the following are the sources of income for the Reserve Bank of India?

I. Buying and selling Government bonds

II. Buying and selling foreign currency

III. Pension fund management

IV. Lending to private companies

V. Printing and distributing currency notes

Select the correct answer using the code given below:

This questions was previously asked in

UPSC CSE 2025 (General Studies-1)

I and II only

II, III and IV

I, III, IV and V

I, II and V

- I. Buying and selling Government bonds

- Correct. This is a source of income for the RBI through interest earnings and market operations.

- II. Buying and selling foreign currency

- Correct. The RBI earns income from foreign exchange operations.

- III. Pension fund management

- Incorrect. The RBI does not earn income from pension fund management.

- IV. Lending to private companies

- Incorrect. The RBI primarily lends to commercial banks, not directly to private companies.

- V. Printing and distributing currency notes

- Incorrect. Printing and distributing currency notes generate costs, not profits, for the RBI.

- Correct Answer: Option 1, I and II only

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