Which of the following is NOT the function of the Reserve Bank of India?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. It accepts deposits from the public.
It accepts deposits from the public is NOT the function of the central bank of the country.
Central banks, such as the Reserve Bank of India (RBI), typically perform the following functions:
Controlling Money Supply: Regulating the amount of money circulating in the economy.
Acting as Banker to the Government: Managing government accounts and handling public debt.
Issuing Currency: Providing the official currency for the country.
However, central banks do not generally accept deposits from the general public; this function is typically performed by commercial banks.