Subject: RBIxFunctions

The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters.

The Reserve Bank of India regulates the commercial banks in matters of
(1). liquidity of assets
(2). branch expansion
(3). merger of banks
(4). winding-up of banks
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In the context of Indian economy which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
1. To enable the Central Bank to control the amount of advances the banks can create.
2. To make the people’s deposits with banks safe and liquid.
3. To prevent the commercial banks from making excessive profits.
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements.
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Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?
1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
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Which one of the following statements correctly describes the meaning of legal tender money ?

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following:
1.Lending to trade and industry bodies when they fail to borrow from other sources.
2.Providing liquidity to the banks having a temporary crisis.
3.Lending to governments to finance budgetary deficits.
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Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization?

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.
Which of the statements given above is/are correct?

Which of the following are the sources of income for the Reserve Bank of India?
I. Buying and selling Government bonds
II. Buying and selling foreign currency
III. Pension fund management
IV. Lending to private companies
V. Printing and distributing currency notes

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With reference to different Committees in India, consider the following details:
Sl. No. Committee | Objective | Organization under which it was formed
1.R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India
2.L.C. Gupta Committee | Preparing a roadmap for the introduction of derivatives trading in India | Securities and Exchange Board of India
3.Urjit R. Patel Committee | Preparing a roadmap for reforming bank lending to the Housing sector | Reserve Bank of India
4.Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India
In how many of the above rows are all the details correctly matched?