Question

State with Reasons whether the following statement is TRUE or FALSE:

Central bank (RBI) connot accept deposit from the public.

Options

• True 

• False 

Answer 1

Central bank (RBI) cannot accept deposit from the public- True
Explanation:
The above statement is correct. The RBI cannot accept deposits from the general public; it is the commercial banks that accept deposits from the public. The main function of the central bank is to maintain economic stability in the country by formulating monetary policies.