Consider the following statements : The Reserve Bank of India is respo

Consider the following statements :
The Reserve Bank of India is responsible for the issuance of

1. currency notes and coins
2. Government bonds
3. corporate bonds
4. stocks

Which of the above statements are correct?

1, 2 and 4 only

1, 2, 3 and 4

3 and 4 only

1, 2 and 3 only

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC Combined Section Officer – 2019-20

Download PDF Attempt Online

The Reserve Bank of India (RBI) is the central bank of India and is responsible for the issuance of currency notes (except the one-rupee note and coins which are issued by the Government of India but put into circulation by RBI) and management of government debt, which includes issuing government bonds. RBI does not issue corporate bonds or stocks; these are issued by companies and traded in the securities market regulated by SEBI. Therefore, statements 1 and 2 are correct, while 3 and 4 are incorrect.

– RBI is the sole authority for issuing currency notes in India (except ₹1 note).
– RBI acts as the debt manager for both the Central and State Governments, involving the issuance and management of government securities (bonds).
– Corporate bonds and stocks are capital market instruments issued by non-government entities.

The one-rupee note and coins are minted by the Government of India, but RBI facilitates their distribution and circulation. RBI’s other functions include acting as a banker to the government, banker to banks, foreign exchange manager, and regulator of the banking system.

Join Our Telegram Channel

More similar MCQ questions for Exam preparation:-