[amp_mcq option1=”RBI” option2=”Commercial banks” option3=”SEBI” option4=”Finance Ministry” correct=”option1″]
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 and the banker’s bank. It is also the issuer of the Indian rupee.
The RBI discounts treasury bills on behalf of the government of India. Treasury bills are short-term debt instruments issued by the government of India. They are used to finance the government’s current expenditure and to meet its short-term liquidity requirements.
Commercial banks also discount treasury bills, but they do so on a much smaller scale than the RBI. Commercial banks discount treasury bills to earn interest income.
SEBI is the Securities and Exchange Board of India. It is the regulator of the Indian securities market. SEBI does not discount treasury bills.
The Finance Ministry is the ministry of the government of India that is responsible for the country’s finances. The Finance Ministry does not discount treasury bills.
The RBI is the only institution that is authorized to discount treasury bills on behalf of the government of India.