Which of the following is NOT a function of the Reserve Bank of India (RBI)?

Correct option is A

The correct answer is (a) Banker to the public.

Information Booster

• The Reserve Bank of India (RBI) is responsible for several key functions in the Indian economy, including being the banker to the government, the bank of currency issue, and the lender of the last resort.
• The RBI manages the monetary policy, currency management, and acts as the regulator of the banking system in India.

Additional Knowledge

• The RBI does not perform the function of being a banker to the public; this role is fulfilled by commercial banks in India, which offer financial services like savings and current accounts, loans, etc.
• As banker to the government, the RBI manages the government's accounts, issues government securities, and helps in foreign exchange management.
• As the bank of currency issue, it is responsible for the issuance and management of Indian currency notes, except for one-rupee notes and coins.
• As the lender of the last resort, the RBI provides emergency financial assistance to commercial banks during financial crises.