New NABARD Workshop - Last 4 year trend. March 5 at 5 PM. Register here

    Question

    Which of the following is NOT a function of the Reserve

    Bank of India (RBI)?
    A Imposing direct taxes Correct Answer Incorrect Answer
    B Maintains banking accounts of all scheduled banks Correct Answer Incorrect Answer
    C Manages the Foreign Exchange Management Act, 1999 Correct Answer Incorrect Answer
    D Issues, exchanges, and destroys currency notes Correct Answer Incorrect Answer

    Solution

    The imposition of direct taxes is not within the RBI's purview, as this responsibility belongs to the Central Board of Direct Taxes (CBDT). The RBI's functions are centered around monetary policy, banking regulation, and currency management, among others.

    Practice Next

    Relevant for Exams: