Question

Which of the following is NOT true with reference to the Reserve Bank of India?

Options

• It is the sole custodian of foreign exchange reserves.

• It extends loans to the general public.

• It makes and receives payment on behalf ofthe government.

• It has the monopoly of issuing currency notes.

Answer 1

It extends loans to the general public.

Explanation:

It is not possible for individuals to obtain loans from the Reserve Bank of India (RBI). Instead, it oversees other banks and financial institutions that lend money to people and companies. One of the RBI’s main jobs is to keep foreign exchange funds safe. It also handles government payments and is the only organization in India authorized to print currency notes.