The correct answer is A. RBI.
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 banker’s bank, and the lender of last resort. It is also responsible for issuing currency in India and for managing the country’s foreign exchange reserves.
The RBI is governed by a central board of directors, which is headed by the Governor of the RBI. The Governor is appointed by the President of India on the recommendation of the Union Government. The other members of the central board are appointed by the Government of India, after consultation with the RBI.
The RBI has a number of functions, including:
- Issuing currency: The RBI is the sole issuer of currency in India. It issues notes and coins of various denominations.
- Managing the country’s foreign exchange reserves: The RBI manages the country’s foreign exchange reserves. It buys and sells foreign currencies to maintain the value of the Indian rupee.
- Conducting monetary policy: The RBI conducts monetary policy to control the money supply in the economy. It does this by buying and selling government securities, and by setting the repo rate and the reverse repo rate.
- Supervising and regulating banks: The RBI supervises and regulates banks in India. It ensures that banks are sound and that they comply with the RBI’s regulations.
- Providing financial services to the Government of India: The RBI provides financial services to the Government of India. It manages the Government’s accounts, and it issues treasury bills and government securities.
- Providing financial services to the public: The RBI provides financial services to the public. It offers a number of deposit and lending products, and it also offers a number of other financial services, such as foreign exchange services and remittance services.
The RBI is an independent body, and it is not subject to the control of the Government of India. However, the Government of India has the power to appoint the Governor and the other members of the central board, and it also has the power to issue directions to the RBI.
The RBI is a very important institution in the Indian economy. It plays a key role in managing the country’s monetary policy, and it also provides a number of financial services to the Government of India and to the public.