Question

Statement (1): State Bank of India is the central bank of India.

Statement (2): The Reserve Bank of India controls the entire banking system in India.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

Answer 1

Statement 2 is true, Statement 1 is false.

Explanation:

• The State Bank of India (SBI) is the largest commercial bank in India, but it is not the central bank.
• The Reserve Bank of India (RBI) is the central bank of India and controls the entire banking system in the country. It is the apex bank responsible for regulating money supply and banking operations in India.