Q.Central Bank is an apex financial institution of a country that (A) controls the entire banking system and money supply.
(B) acts as banker to the Government.
(C) issues currency.
(D) All of the above.

The RBI acts as banker, agent, and advisor to the government — handling its accounts, managing public debt, and offering policy counsel. Periodic inspections of commercial banks fall under its regulatory role, not its government-service functions. Answer: (D).

Currency in India is issued by the Reserve Bank of India (RBI).

The Reserve Bank of India (RBI), as the central bank, has the sole right to issue currency notes in India (except the one-rupee note and coins, which are issued by the Government of India through the Ministry of Finance …

A Central Bank controls the banking system/money supply, acts as the government's banker, AND issues currency -- all at once.

The Central Bank (e.g. the Reserve Bank of India) is the apex monetary institution of a country and performs several functions together, not just one: (a) it controls and regulates the entire banking system and the supply of money/credit in the economy through monetary policy tools; (b) it acts as banker, agent and adviser to the Government, managing its accounts, receipts and payments, and providing loans/advances; (c) it has the sole a …

The banker of banks in India is the RBI.

The Reserve Bank of India (RBI), as the central bank, acts as the 'banker of banks' (bankers' bank): it holds the cash reserves of commercial banks, provides them with banking facilities, settles inter-bank claims, and acts as their lender of last …

The RBI Act was passed in 1934, and the Reserve Bank of India itself started functioning as India's central bank on 1 April 1935.

The need for a dedicated central bank in India was recognised well before independence, to centralise currency issue, manage the banking system, and regulate credit. This led to the Reserve Bank of India Act, 1934, which laid down the RBI's constitution, powers, and functions.

Following the passage of this Act, the Reserve Bank of India was formally constituted and commenced its operations on 1 April 1935. At the time of its founding, the RBI was set up as a shareholders' bank with private ownership, headquartered initially in Calcutta (later moved to Bombay/Mumbai). It was subsequently nationalised in 1949, after which it has functioned entirely as a government-owned institution.

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Central bank regulates the system; commercial banks deal directly with the public.

The central bank (RBI in India) is the apex institution of a country's monetary and banking system — it has the sole right to issue currency, acts as banker to the government and to other banks, and regulates/controls the entire banking system (through CRR, SLR, repo rate, etc.); it does not ordinarily deal directly with the general public. A commercial bank, by contrast, is a profit-seeking institution that directly accepts deposits from, and extends loans/credit to, …

The central bank of India is the Reserve Bank of India (RBI).

The Reserve Bank of India (RBI), established in 1935, is the central bank of the country. As the apex monetary institution, it issues currency, acts as banker to the government and to commercial banks, is the lender of last resort, manages foreign exchange, …

The Central Bank is special because it is the apex monetary authority — sole note-issuer, banker to government and banks, and controller of credit.

The Central Bank (e.g. the Reserve Bank of India) enjoys a special status in a country's banking structure because it is not an ordinary commercial bank seeking profit — it is the apex institution that sits at the top of and regulates the entire banking system. It alone has the legal authority to issue currency notes, it acts as banker, agent and financial adviser to the government, it is the 'banker's bank' and lender of last resort to commercial banks, and it controls the overall volume and cost of credit in the economy through monetary policy instruments (bank rate, CRR, SLR, open market operations, etc.) in order to maintain monetary and price stability. No …

A central bank is the apex institution that controls a country's currency, credit and banking system; in India this is the RBI.

Every modern economy needs a single, authoritative institution at the top of its banking structure to ensure monetary stability and orderly growth of credit. A central bank performs this role: it has the sole right to issue currency notes, acts as banker, agent and financial adviser to the government, acts as banker to commercial banks (holding their reserves and lending to them as lender of last resort), and regulates the overall volume of credit and money supply in the economy through monetary policy instruments. Unlike a commercial bank, a central bank does not deal directly with the public for profit — its obj …

The central bank of the country — the RBI in India's case — regulates monetary policy.

Monetary policy refers to the policy of the central bank with regard to the control of the supply of money and the cost and availability of credit, with the objective of achieving price stability, full employment and economic growth. Since the central bank is the apex monetary authority — the sole issuer of currency and banker to all commercial banks — it alone has the instruments (bank rate, repo/reverse repo rate, CRR, SLR, open market operations) needed to expand or contract credit across the whole banking system. In India, t …