[amp_mcq option1=”an extension wing of Ministry of Finance, Government of India” option2=”a body corporate, having perpetual succession and a common seal” option3=”an institution owned by Indian Banks Association” option4=”a private sector bank” correct=”option2″]
The correct answer is B.
The Reserve Bank of India (RBI) is India’s central bank. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is a body corporate having perpetual succession and a common seal. It is owned by the Government of India. The RBI is the sole issuer of banknotes in India and is responsible for the management of the country’s monetary policy. It also acts as the banker to the Government of India and the commercial banks in India.
Option A is incorrect because the RBI is not an extension wing of the Ministry of Finance, Government of India. The RBI is an independent body corporate with its own Board of Directors.
Option C is incorrect because the RBI is not an institution owned by the Indian Banks Association. The RBI is owned by the Government of India.
Option D is incorrect because the RBI is not a private sector bank. The RBI is a public sector bank.