The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks - ₹1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, ₹25,000 on Nagarik Sahkari Bank Maryadit, and ₹1 lakh on Ravi Commercial bank for violating the provision of its regulation. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial Bank on exposure norms and statutory and other restrictions & KYC.
As a bankers' bank, what is the role played by RBI? (A) Custodian of cash reserves (B) Maintain Foreign Exchange Reserves (C) Currency Issue (D) Lender of last resort (E) Clearing house Choose the correct answer from the options given below:
A, D and E only
The correct answer is **A, D, and E only**.
The RBI functions as a **bankers' bank** by:
- **(A) Custodian of cash reserves** → Commercial banks maintain reserves with RBI.
- **(D) Lender of last resort** → Provides emergency liquidity support to banks.
- **(E) Clearing house** → Manages interbank transactions.
- **(B) Maintain Foreign Exchange Reserves** → Incorrect. This is a monetary policy role, not a bankers' bank role.
- **(C) Currency Issue** → Incorrect. This is a separate function under monetary control.
Important Questions from Money and Banking
Arrange the following sequence related to the correction of Excess Demand in correct order:
(A) Increase in Bank Rate by RBI
(B) Problem of excess demand will be corrected
(C) Public will borrow less
(D) Decreases money supply
(E) Loans taken by commercial banks will become costlier/expensive
Choose the correct answer from the options given below:
GLF campaign was initiated by China in 1958. Hence, GLF stands for what?
All the points on the Indifference Curve show the level of satisfaction. Choose the correct option:
Which of the following indicate the development that allows all future generations to have a potential average quality of life that is at least as high as that which is being enjoyed by the current generation?
Why are solar and wind energy not explored on a large scale?
