Identify the incorrect option as given below:
[1 mark]
The RBI monitors the banks in actually maintaining cash balance.
Banks have to submit information to the RBI on income tax returns.
The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators
The RBI supervises the functioning of formal sources of loans.
Answers
Answer:
1)
Explanation:
the rbi monitors the banks in actually maintaining cash before
Answer:
All the above mentioned functions are correct
Explanation:
Reserve Bank of India is an apex bank that controls the entire banking system of India. It is the sole agency of note issuing and controls the supply of money in the economy. It serves as the banker of the government and manages foreign exchange of the government. Any two functions of RBI are :-
1. Bank of issuing notes: Reserve bank of India has monopoly rights of issuing notes. This is called currency authority function of central banks. All notes issued by RBI are an unlimited legal tender in India.
2.Property registrars and financial organisations you work with, such as your bank, insurance, mutual fund company, and credit card business, provide information to the tax department about your significant transactions. The tax division contrasts this data with the return you submitted.( It is mentioned in the index of RBI circular )
3. Banker to the Government: Reserve bank of India is an banker, agent and financial adviser to the government. It manages the account of the government, it buys and sells the securities of the government and it frames policies to regulate the money market.
4. It prevents the bank from managing the company for financial gain solely. It also monitors the interest rates charged for bank-provided credit facilities. The RBI ensures that bank loans are reasonably priced and accessible.(Formal sources of loans).
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