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What is the role of the Reserve Bank of India (RBI) in the banking structure?

Practice Questions

Q1
What is the role of the Reserve Bank of India (RBI) in the banking structure?
  1. To provide loans to individuals
  2. To regulate and supervise the banking sector
  3. To offer investment advice
  4. To manage foreign exchange

Questions & Step-by-Step Solutions

What is the role of the Reserve Bank of India (RBI) in the banking structure?
  • Step 1: Understand that the Reserve Bank of India (RBI) is the central bank of India.
  • Step 2: Know that the RBI's main job is to regulate and supervise all banks in India.
  • Step 3: Learn that the RBI ensures that banks operate safely and soundly.
  • Step 4: Recognize that the RBI helps maintain financial stability in the country.
  • Step 5: Remember that one of the RBI's important roles is to protect the money of depositors.
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