Economics • Banking & FinanceEasy
Which institution serves as the central banking authority of India, responsible for issuing currency and regulating the monetary system?
A. State Bank of India
B. Reserve Bank of India✓ Correct Answer
C. Ministry of Finance
D. National Bank for Agriculture and Rural Development
💡 Solution & Explanation
The Reserve Bank of India is India's central banking institution, established on April 1, 1935, under the Reserve Bank of India Act, 1934. It controls the monetary policy of the Indian rupee, regulates commercial banks, and acts as the banker to the government. The Ministry of Finance formulates fiscal policy and manages the Union Budget.
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