Question

Which statement is not true about Reserve Bank of India?

Options

• It is the Central Bank of India

• Individuals can open account in RBI

• It was established in 1935

• It enjoy monopoly over issue of currency notes

Answer 1

Individuals can open account in RBI

Explanation:

• RBI is the central bank of India and the apex bank in the Indian banking system.
• It was established in 1935, initially as a private shareholders' bank, and was nationalized in 1949.
• RBI enjoys the sole monopoly over the issue of currency notes in India, controlling the entire money supply.
• However, individuals cannot open accounts in the RBI as it primarily functions as a regulator and controller of the banking system and serves banks and the government, not individual customers.