Question

ASSERTION: The central bank is the sole custodian of gold and foreign currency reserves of the country.

REASONING: The ICICI carries out these settlements where the Reserve Bank of India has no office.

Options

• A is true, and R is the correct explanation for A.

• A is true, and R is not the correct explanation for A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, but R is false.

Explanation:

The central bank is indeed the sole custodian of the country’s gold and foreign exchange reserves. The settlements where the RBI lacks an office are carried out by the State Bank of India (not ICICI).