UGC NET COMMERCE December 2018 Q43
0. Which one of the following is not the function of the Reserve Bank of India?
- Option : C
- Explanation : The main functions of the RBI are:
(i) To maintain monetary stability so that the business and economic life can deliver welfare gains of a properly functioning mixed economy;
(ii) To maintain financial stability and ensure sound financial institutions so that monetary stability can be safely pursued and economic units can conduct their business with confidence;
(iii) To maintain stable payments systems so that financial transactions can be safely and efficiently executed;
(iv) To promote the development of the financial infrastructure in terms of markets and systems, and to enable it to operate efficiently, that is, to play a leading role in developing a sound financial system so that it can discharge its regulatory function efficiently;
(v) To ensure that credit allocation by the financial system broadly reflects the national economic priorities and societal concerns; and
(vi) To regulate the overall volume of money and credit in the economy, with a view to ensuring a reasonable degree of price stability.
Roles of RBI
The roles that the RBI plays in the Indian banking and financial system relate to
(i) Note issuing authority,
(ii) Government banker.
(iii) Bankers’ bank.
(iv) Supervising authority,
(v) Exchange control authority.
(vi) Promoter of the financial system and
(vii) Regulator of money and credit.
