Q. Which of the following function/functions of Reserve Bank of India?
1.Issuing agency of all types of denominations of currency and coins.
2.Distributing agent for currency and coins issued by the Government of India.
3.Banker of the government.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Explanation: After nationalization in 1949, it emerged as the central banking body of India and it did not remain a ‘bank’ in the technical sense.

Since then, the governments have been handing over different functions 4 to the RBI, which stand today as given below:

  1. It is the issuing agency of the currency and coins other than rupee one currency and coin (which are issued by Ministry of Finance itself with the signature of the Finance Secretary on the note).
  2. Distributing agent for currency and coins issued by the Government of India.
  3. Banker of the government.
  4. Bank of the banks/Bank of last resort.

Source: TMH – Ramesh Singh

Share