With which of the following state and union territory does the Reserve Bank of India (RBI) not transact business?

Correct option is C

The Reserve Bank of India (RBI) does not transact business with the state governments of Sikkim and Jammu and Kashmir.
· This is an exception to the RBI’s role as the banker to the state and central governments.
Key Points:
1. Jammu and Kashmir:
· The RBI does not manage the banking transactions for this union territory despite its integration into India.
2. Sikkim:
· The banking business in Sikkim is managed independently due to its unique historical and constitutional status.