RBI Functions — Set 8
Banking · RBI के कार्य · Questions 71–80 of 80
Who was the Governor of the RBI during the 1991 economic reforms?
Correct Answer: A. S. Venkitaramanan
S. Venkitaramanan was the RBI Governor during the critical period of 1990-1992. He played a major role in managing the balance of payments crisis. C. Rangarajan succeeded him and continued the reforms.
Which department of the RBI handles the 'Payment and Settlement' systems?
Correct Answer: C. DPSS
The Department of Payment and Settlement Systems (DPSS) regulates UPI, NEFT, and RTGS. It ensures that digital money transfers are safe and efficient. This oversight helps build public trust in digital payments.
The RBI's 'Financial Literacy Week' is aimed at?
Correct Answer: A. Educating the public about banking and financial rights
Financial Literacy Week is an initiative to spread awareness about safe banking practices. It teaches people about subjects like digital security and grievance redressal. The RBI selects a different theme for this week every year.
What is 'Reverse Repo Rate'?
Correct Answer: A. Rate at which RBI borrows from banks
Reverse Repo Rate is the rate banks receive when they keep their extra cash with the RBI. It is used to absorb excess money from the banking system. It is usually lower than the Repo Rate.
The RBI's 'Clean Note Policy' prohibits which of the following?
Correct Answer: A. Writing on currency notes
Writing on currency notes is prohibited under the Clean Note Policy. This policy ensures that the currency remains clean and durable for longer use. Banks are instructed to replace soiled notes for the public.
Which RBI subsidiary handles 'Deposit Insurance'?
Correct Answer: B. DICGC
DICGC provides insurance for bank deposits up to Rs. 5 Lakh. This protects small depositors if a bank fails. It is a wholly-owned subsidiary of the Reserve Bank of India.
How many members are there in the 'Monetary Policy Committee' (MPC)?
Correct Answer: B. Six
The MPC consists of six members: three from the RBI and three nominated by the Government. This committee meets at least four times a year to set interest rates. Decisions are made by a majority vote.
The RBI is often called 'Mint Road' because?
Correct Answer: A. It is located on a street named Mint Road in Mumbai
The RBI's central office in Mumbai is historically associated with the address on Mint Road. This term is often used in financial journalism to refer to the RBI. The actual mint (where coins are made) is a separate government entity.
What is the 'Marginal Standing Facility' (MSF) rate?
Correct Answer: D. Rate at which banks borrow from RBI in emergencies using SLR securities
MSF is an emergency lending window where banks can borrow overnight from RBI by pledging their SLR securities. The MSF rate is typically 25 basis points above the repo rate and acts as the ceiling of the LAF corridor.
What is the 'Open Market Operations' (OMO) conducted by RBI?
Correct Answer: A. Buying and selling government securities in the open market
OMO involves the RBI buying or selling government securities in the open market to control money supply. Buying securities injects liquidity (increases money supply), while selling absorbs liquidity (decreases money supply).