The correct answer is D. Accepting deposits from the public.
The Reserve Bank of India (RBI) is the central bank of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is the banker to the government of India, the custodian of India’s foreign exchange reserves, and the lender of last resort to the banking system. It also regulates the banking sector and the financial system in India.
One of the functions of the RBI is to accept deposits from the public. This is done through the RBI’s network of branches and authorized dealers. The RBI also accepts deposits from banks and other financial institutions. These deposits are used by the RBI to carry out its various functions, such as providing liquidity to the banking system, managing the country’s foreign exchange reserves, and regulating the financial system.
The other options are not functions of the RBI.
Option A is incorrect because banks issue letters of credit to their customers, not the RBI. A letter of credit is a document issued by a bank at the request of a customer, guaranteeing that the customer will pay a specified amount to a third party.
Option B is incorrect because the RBI collects and compiles statistical information relating to banking & other financial sector, but it does not underwrite the securities issued by public or private organizations. Underwriting is the process of guaranteeing the sale of a security, such as a bond or stock.
Option C is incorrect because banks underwrite the securities issued by public or private organizations, but the RBI does not.